Cleanfield signs Letter of Intent with WePOWER
HAMILTON, ON — Cleanfield Alternative Energy Inc. announced today that it has signed a Letter of Intent (LOI) for a merger with privately-held, California-based WePOWER, LLC to create a global market leader in vertical axis wind turbines (VAWTs) and other renewable energy systems. Under the terms of the LOI, the companies have agreed to conduct the due diligence necessary to reach a definitive agreement and then seek regulatory and shareholder approval. The combined entity will also seek to raise the requisite amount of working capital to execute its business strategy.
"We are very excited about the potential for our combined companies," said Cleanfield CEO Tony Verrelli. "WePOWER has established itself as a market leader with a diversified product line and has established an outstanding dealer/distributor network and preferred vendor relationship with a major retailer. We believe that our engineering and development strengths coupled with WePOWER's sales and marketing expertise and extensive customer base is a win-win for our shareholders and a perfect strategic fit. This merger will represent a giant milestone in Cleanfield's seven-year history." Mr. Verrelli concluded, "We expect this combination to add appreciable value for our investors and customers and we look forward to updating shareholders as the transaction progresses."
WePOWER Chairman and CEO Marvin Winkler stated, "This strategic merger provides WePOWER with numerous advantages, including: new products, new R&D capabilities, a strong management team and proven products that will enhance shareholder value. Cleanfield has invested heavily in R&D, Patents and Intellectual Property, which will expedite development of our next generation turbines and will be incorporated into WePOWER products going forward. Key competitive advantages include a 3-blade VAWT design, proprietary electronics, and a sophisticated rooftop mounting system." Mr. Winkler added, "The timing couldn't be better as WePOWER is enjoying unprecedented growth and expansion that necessitates additional resources, which this merger with Cleanfield is anticipated to provide."
Cleanfield and WePOWER believe the combination of the two companies will create a global powerhouse in renewable energy systems. It is projected to enhance shareholder value by offering additional benefits, including:
- Extensive distribution network
- Key high profile key customers
- Cost savings including economies of scale
- Reduced risk for investors
- Expanded customer service and technical support
- Broader product offerings
- Accelerated sales
- Complementary management teams and skill sets
WePOWER creates and delivers safe, clean and renewable energy solutions around the world. WePOWER's Vertical Axis Wind Turbines represent the most comprehensive family of products in the small wind industry. WePOWER's patented Windvertiser line features a method to display moving images on wind turbines including eco-graphics, corporate images and even logos to communicate a commitment to help the environment.
Cleanfield Alternative Energy, Inc. develops renewable energy products for use in the urban environment in commercial and institutional settings. Cleanfield's V3.5 Vertical Axis Wind Turbine and its UL-certified inverter are designed to harness urban wind efficiently and cost effectively. Its VAWTs can be mounted on a tower or a suitable rooftop.
For further information visit www.cleanfieldenergy.com.
January 11, 2010 By Newswire
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