BOCA RATON, FLORIDA--(Marketwire - Jan. 28, 2013) - Novation Holdings (OTCBB:NOHO) today announced that it has acquired a controlling interest in Alternative Energy Partners, Inc., a mining and energy holding company whose common shares are traded on the OTC BB under the symbol AEGY. As a result of the acquisition, Novation now holds 40 million shares of common stock, representing approximately 19 percent of the common shares issued and outstanding, and 1 million shares of Series A Convertible Preferred stock holding voting power equal to 51 percent of the total vote of all shares entitled to vote. AEGY currently has 2 wholly-owned subsidiaries, Clarrix Energy, LLC and SAC Acquisition Corp., and anticipates acquiring a third operating subsidiary shortly, all as previously announced by AEGY.
Clarrix Energy, LLC provides consultative and brokerage energy services to business of all sizes. The objective of these services is to decrease utility costs, in as many ways as possible for every client. The company currently has agreements to supply deregulated energy in 10 states, and is in pursuit of supply partners. Management has focused initially on large energy users.
Clarrix Energy was founded in April, 2012 by a management team composed of a diverse group of highly skilled executives with a broad base of skills in medicine, finance, web development, and retail. The company's initial source of revenue is from commissions generated by saving businesses from 1 to 25% on their utility bills. Management will be diligently searching for products and services for clients, including solar, surge protection, lighting and more.
In December, 2012, AEGY completed the acquisition of a mineral lease on 160 acres of land in Safford, AZ., from which it plans to develop, mine and extract gold, silver, platinum, palladium and other precious metals, and then refine and sell the resulting metals. An existing independent appraisal of the ore in place on the site values the lease interest in excess of $600 million. AEGY will shortly commence the regulatory process for a 1:100 reverse split of its common stock, as previously announced, and an amendment of its Articles to increase the authorized common stock, as part of that closing.
AEGY also has agreed to acquire a second mineral property, a deposit of already mined black sand located in New Mexico, which has been independently valued at an estimated $540 million on site. The deposit is in excess of 55,000 tons of materials which are crushed and milled to approximately 200 mesh in size, washed and ready for refining. AEGY plans to transport the deposit for refining and sale.
AEGY also has entered into an agreement to acquire StarPoint Acquisition Corp., a Florida corporation ("SAC"), which has agreed to acquire the assets of StarPoint USA, Inc. ("StarPoint"), a U.S. based, vehicle distribution company. StarPoint has a proven track record in the US auto distribution market that is not exclusive to any specific vehicle brand, which will allow it to distribute a number of different brands or models in the U.S. market. As part of its ongoing business, StarPoint has been the exclusive distributor of Daewoo vehicles and Genuine Daewoo Parts to the U.S. market since 1998 and continues to provide both warranty administration and genuine Daewoo parts to approximately 80,000 remaining Daewoo owners in the US.
StarPoint plans to maximize sales and market share through the near term use and further development of an existing and robust independent retail dealership network. The company will offer unique vehicles of exceptional value at very competitive prices with sales to dealers being supported by a seasoned, market savvy management team that is capable of implementing a marketing strategy designed to introduce new models/brands and establish it as a leader in the alternative fuel vehicle ("AFV") market niche. Closing of the StarPoint acquisition is dependent on funding but is expected to close by the end of February, 2013.
Michael Gelmon, Chairman and CEO of Novation, stated, "The acquisition of a controlling interest in AEGY represents another step in transforming the company from a focus exclusively on development of medical devices, to that of a diversified holding company with interests in medical devices, early childhood language education, Internet service providers, and Internet distribution and sale of consumer and health and beauty products, as well as a controlling interest in a second public company focused on alternative energy, mining and alternative fuel vehicles in the US market. This expansion of our business model will allow us to generate revenues and profits must faster, to consolidate and streamline our administrative and other support activities, and to position us for more acquisitions."
FORWARD LOOKING STATEMENT
Certain statements contained herein and subsequent oral statements made by and on behalf of Novation Holdings, Inc. may contain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are identified by words such as "intends", "anticipates", "believes", "expects", and "hopes" and includes, without limitation, statements regarding Novation Holdings, Inc.'s plan of business operations, product research and development activities, anticipated revenues and expenses and potential contractual arrangements and obligations. Also, our management may make forward-looking statements orally to investors, analysts, the media and others. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These risks and others are included from time to time in documents we file with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on our future results. Accordingly, you should not place undue reliance on these forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The Company undertakes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the Company. The Company's SEC filings are available at http://www.sec.gov.