SOURCE: Harmonic Energy Inc.
LONDON--(Marketwire - Feb 19, 2013) - Harmonic Energy Inc. (OTCQB: ASUV) is a company focused on tyre manufacturing and recycling using an innovative approach to energy efficiency and sustainability is pleased to announce that is has signed a 10 year Take-or-Pay contract with Carbon Black Sales "CBS" for the distribution, blending and sales of refined carbon black produced from any of its planned projects and operations globally.
The signed contract is based on the internationally prevailing "take-or-pay" practice, emphasizing the rights and obligations of both parties: "provision without delay" on the part of the supplier and "pay regardless of market conditions" on the part of the purchaser.
Harmonic continues to move its business plans forward and negotiations with potential finance partners is on track. The company believes that the execution of long term product sales contracts only further reinforces its business plans and achievements. The company believes these contracts will provide a significant benefit to the company allowing it to access larger pools of investment capital given it has pre-sold some of its production 10 years in advance. The fulfillment of this contract gives Harmonic the ability to build out several projects without requiring the company to develop any further carbon sales partnerships; however the company is currently entertaining more offers for long term carbon supply contracts.
"In some cases certain financing options and considerations may require that all or a large part of the projects under development put in place 'take-or-pay' contracts prior to the projects construction. This contract represents a significant milestone for the company," said Jamie Mann.
During the term CBS shall take no less than 30,000 tonnes per year of Harmonic's low CO2e carbon black products. Harmonic's green carbon black is an equivalent grade of N660 carbon black. The price per tonne will be established by using the quarterly Sid Richardson Carbon price list for N660 carbon black. CBS will purchase Harmonic's carbon black at a 60% discount to market prices on a per tonnes basis. Harmonic's management continues to grow its sales and distribution networks and is confident that additional opportunities exist for further contracts to be negotiated with higher profit margins. Even with such a heavily discounted carbon sales price we believe that this contract is a testament to the strength of the company's business plan and product offering. Each facilities financial model and return on investments analysis is positioned strongly and with guaranteed carbon black sales in place.
The construction of Harmonic's projects could have a transformative effect in the great lakes regions of America's industrial heart land potentially creating significant economic benefits. The introduction of domestic green tyre manufacturing jobs and the production of high quality tyres and green resource products using clean alternative energy sources in a vertically integrated setting will significantly improve and protect the environment while facilitating local economic development.
About Harmonic Energy Inc.
Harmonic is a company that focuses on a comprehensive solution to the disposition of scrap tyres worldwide. Harmonic's plans include the utilization of proven technologies that ensure each scrap tyre is either remanufactured and put back on the road as a new tyre or is completely recycled and reduced into marketable chemical commodity products. Both the tyre remanufacturing and carbonization technologies that will be utilized by Harmonic are commercially proven and have viable operating commercial facilities.
Harmonic plans to be the first company to integrate these two technologies to provide a comprehensive 'closed-loop' solution for the management of scrap tyres. By design, Harmonic plans to offer a solution that replicates nature's intentions by developing symbiosis between waste, energy supply and sustainable growth. For more information please visit ASUV's website ~ www.harmonicenergyinc.com.
Statements in this release may be regarded, in certain instances, as "forward-looking statements" pursuant to Section 27A of the Securities Act 1933 and Section 21B of the Securities Exchange Act 1934, respectively. "Forward-looking statements" are based on expectations, estimates and projections at the time the statements are made, and involve risks and uncertainties, which could cause actual results or events to differ materially from those currently anticipated, including, but not limited to delays, difficulties, changed strategies, or unanticipated factors or circumstances affecting Harmonic Energy Inc and its business. There can be no assurance that such forward-looking statements will ever prove to be accurate and readers should not place undue reliance on any such forward-looking statements contained herein. Harmonic Energy Inc will not republish revised forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.