SOURCE: AlumiFuel Power Corporation

AlumiFuel Power Corporation

September 16, 2013 07:00 ET

AlumiFuel Power Corporation Updates Status of Genport-Novofuel Merger Transaction

PHILADELPHIA, PA--(Marketwired - Sep 16, 2013) - Early production stage hydrogen generation company AlumiFuel Power Corporation (OTCQB: AFPW) (the "Company") announced today that the extensive due diligence process involving the prospective merger transaction with Genport, srl of Italy has now been completed, and the parties are finalizing the definitive Agreement. (See AFPW news release of July 16, 2013).

The two companies are working intensely and diligently to sort out complex international contractual issues and arrive at the optimal transaction structure. The Agreement requires modification to become a Stock Purchase Agreement rather than a Merger Agreement, among other things to better comply with Italian law. The end result essentially would be the acquisition of Genport by Novofuel, Inc., a U.S. based company. Genport would become a wholly owned subsidiary of Novofuel, with Genport shareholders and AFPW shareholders owning Novofuel, and Novofuel owning 100% of Genport, srl shares. The two parties are now amending the Agreement accordingly, and are in the process of finalizing it for signature. The amount of capital to be raised, and the most cost effective options for raising the capital in the public or private equity market are being deliberated. In this regard, the Company is actively engaged in ongoing discussions with a variety of potential investors and financial sponsors who are anxiously awaiting finalization of the transaction structure. Both companies remain extremely bullish on completing the deal.

Following the closing of the transaction, Novofuel would have operations in the U.S. and Italy, and be in a position to pursue and capture backup and portable power applications and business opportunities in the U.S., Europe, and other regions -- multi-billion dollar markets. The parties believe that the synergistic combination of Genport's hybrid fuel cells, solar power systems, and lithium-ion battery packs, along with AlumiFuel Power's hydrogen generation systems, can bring powerful alternative energy capabilities to the global marketplace.

About Genport, srl (www.genport.it)
Genport, srl is an advanced power solutions company based near Milan, Italy. Genport is focused on providing clean, safe, reliable and high performance portable power sources for medical, defense, emergency, telecommunications, and industrial applications. Genport's solutions are designed to store and generate electrical energy anytime, anywhere. Genport combines solid hydrogen PEM fuel cell, lithium ion battery and solar cell technologies to: provide a constant, reliable source of power; maximize power and energy density; eliminate noise, emissions and operate in extreme environmental conditions. Genport/GNA's technology partners include Milan Polytechnic, Texas Instruments, Arbin Instruments, four European companies, and Purdue University.

About AlumiFuel Power Corporation
AlumiFuel Power Corporation, through its U.S. operating subsidiary, AlumiFuel Power Technologies, Inc., is an early production stage alternative energy company that generates hydrogen gas and heat through the chemical reaction of aluminum, water, and proprietary additives. This technology is ideally suited for multiple applications requiring on-site, on-demand fuel sources, serving National Security and commercial customers. The Company's hydrogen generation feeds fuel cells for backup and portable power, provides lift gas for weather balloons, and can replace costly, hard-to-handle and high pressure K-Cylinders. Its hydrogen/heat output is also being designed and developed to power fuel cell-based and turbine-based undersea propulsion and auxiliary power systems. The Company has significant differentiators in performance, adaptability, safety and cost-effectiveness in its target market applications, with no external power required and no toxic chemicals or by-products

Safe Harbor for Forward-looking Statements

This news release may contain forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, they are based on management's current beliefs and assumptions as to future events. However, since the company's operations and business prospects are always subject to risk and uncertainties, the forward-looking events and circumstances discussed in this news release might not occur, and actual results could differ materially from those described, anticipated or implied. For a more complete discussion of such risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.

Contact Information

  • CONTACTS:
    Investor Relations:
    AlumiFuel Power Corporation
    Thomas B. Olson
    Corporate Secretary
    303-796-8940

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