ATLANTA, GA--(Marketwired - April 03, 2014) - HydroPhi Technologies Group, Inc. (OTCQB: HPTG) ("HydroPhi"), a developer of water-based, clean energy technology that delivers improved fuel economy and reduced greenhouse gas emissions, today announced it has signed a letter of intent, subject to a final definitive agreement, with Astoria Capital S.A. ("Astoria") to form a new joint venture, "HydroPhi Technologies Europe S.A." (HTE), which would, as proposed, receive exclusive rights to HydroPhi's technology in Europe. Among the proposed terms contained in the letter of intent: (a) HydroPhi would supply the HydroPlant technology to HTE at reasonable cost; (b) HydroPhi would receive equity in the joint venture; (c) HTE would pay HydroPhi additional fees as certain revenue milestones are achieved; and (d) HTE would agree to an initial purchase of HydroPlant units to be held as inventory.
The final terms of the transaction will be set forth in a definitive licensing agreement to be negotiated by HydroPhi and Astoria, however there can be no assurance that the parties will enter into a definitive license agreement or if they do enter into a definitive licensing agreement that the terms and conditions will be as proposed in the letter of intent. Other than with respect to certain provisions relating to exclusivity and confidentiality, letter of intent is non-binding and does not impose an obligation on the parties to enter to a definitive licensing agreement.
Roger M. Slotkin, CEO of HydroPhi, stated, "We believe this partnership would help to accelerate our path to market in Europe. In particular, Astoria's willingness to commit to minimum purchases would be significant validation of our technology."
Mr. Adrian Dzielnicki, Vice President of Astoria Capital S.A., commented, "We believe that the fuel savings to be gained by fleet operators using HydroPhi's technology represents a very compelling value proposition. In Europe, high diesel prices and increasingly stringent environmental regulations make the return on investment even more attractive. We look forward to working with HydroPhi to bring this technology to market throughout Europe."
About Astoria Capital
Astoria Capital finances innovative young life science and technology companies with a particular focus on licensing technologies from North America and helping to commercialize those technologies in Europe and around the world. Astoria Capital employs a highly disciplined due diligence process that balances risks with growth potential. It rigorously accesses management's historical track record and level of commitment. Astoria Capital carefully weighs the variables that can enhance or impede management's ability to execute. It calculates the timing and economics of scalability and the range of risk reward probabilities.
HydroPhi Technologies Group, Inc. (HPTG) is a developer of water-based hydrogen fuel production systems. The Company's technology isn't a fuel cell, nor is it a hydrogen alternative to traditional hydrocarbon fuels. The system utilizes distilled water for the production of hydrogen and oxygen, which is then injected into the air intake of an engine utilizing carbon-based fuels such as diesel, unleaded gasoline and natural gas. HPTG's technology, (HydroPlant™) has been company tested with resulting reduced vehicle operating costs by improved fuel efficiency up to 20%, while lowering greenhouse gas emissions up to 70%. By using an on-board, on-demand electrolysis system to separate hydrogen and oxygen from water, the technology eliminates the need for high-pressure hydrogen storage or hazardous chemicals while producing a stable, inexpensive alternative fuel source. By offering a real-time monitoring system as part of a hydrogen fuel solution with retrofit capability into standard vehicle engines, HPTG provides fuel efficiency to a potentially broad spectrum of users, including logistics, trucking, heavy equipment, marine and agriculture. Additional information about the Company and the technology is available at: www.hydrophi.com.
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