Global Thermoelectric Inc. announces the sale of its military heater division
newswire.ca
CALGARY, June 18 /CNW/ - Global Thermoelectric Inc. (Global), a leading developer of solid oxide fuel cell (SOFC) technology, today announced that it has signed a letter of intent for the sale of its military heater division to Hunter Manufacturing Co. (Hunter), an Ohio-based private company. Closing of the transaction is expected within 60 days and is subject to typical conditions to closing, including completion of due diligence, negotiation of definitive agreements, regulatory approval and the approval of each party's board of directors.
The sale price is comprised of three components estimated to total approximately US$2.2 million. First, a fixed amount of US$565,000 is to be paid over two dates: US$465,000 on closing and US$100,000 on the transfer of
related manufacturing equipment at a later date. Second, a variable component, estimated to approximate US$1.2 million in sales commissions, is to be paid over a five-year term and is contingent on subsequent heater sales by Hunter.
Third, an additional payment, estimated to be US$400,000, is to be made at a later date on the sale to Hunter of Global's heater inventory. Global has committed to completing its current contract with TACOM, with final deliveries expected to be made early in the fourth quarter of 2001.
Global was awarded its original heater contract with the United States Tank-Automotive Armaments Command (TACOM) in 1996. Since then, Global has enjoyed a solid working relationship with TACOM, manufacturing and delivering
over 3,900 heaters to date under this contract and other contracts with military vehicle manufacturers.
With the sale of its heater division, Global has narrowed its focus to that of power generating technologies, specifically solid oxide fuel cell commercialization and continued sales of thermoelectric generators.
Global Thermoelectric Inc. is a world leader in the development of solid oxide fuel cell technology. The Calgary-based company is also the world's leading manufacturer and distributor of thermoelectric generators for use in remote locations. The Company is listed on The Toronto Stock Exchange (TSE) under the symbol GLE.
This release contains certain forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that may cause actual results of events to differ materially from those anticipated in our forward-looking statements. Factors that could cause actual results to differ materially include: rapid technological and/or market changes in the industry, the ability to maintain and grow successful third party and customer relationships, to improve current products and develop new products, to adequately protect the company's proprietary rights and other factors as described in the company's regulatory filings. Although we believe that the expectations reflected in our forward-looking statements are reasonable, individual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements or other future events. Moreover, neither we nor anyone else assumes responsibility for the accuracy or completeness of forward-looking statements.
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For further information: Mark Kryzan, Director, Corporate Affairs, Tel:
(403) 204-6113, Email: mkryzan@globalte.com;
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