VRB Power Acquires Global Patents to the VRB Technology
Friday April 8, 9:30 am ET
VANCOUVER, April 7 /CNW/ - VRB Power Systems Inc. (TSX-V: VRB - News) is pleased to announce that the company has completed the transaction with its now previous subsidiary Pinnacle VRB Ltd. ("Pinnacle") as per the Revised Implementation Agreement announced October 27, 2004.
Under the terms of the Agreement, VRB Power has acquired outright, world-wide patents to the VRB technology except for the Australian based patents, which will remain with Pinnacle. Also, pursuant to a prospectus offering, VRB Power has sold all of its shares in Pinnacle for AUD $.01 per share on a pro-rata basis to existing Pinnacle shareholders. The effect of this share sale is that VRB Power in no longer a shareholder of Pinnacle and Pinnacle is no longer a subsidiary of VRB Power. Additional terms completed as part of the transaction include but are not limited to:
- VRB Power has submitted the written resignations of its directors on
the Board of Pinnacle.
- Pinnacle has received 750,000 common shares of VRB Power and 750,000
share purchase warrants with each warrant entitling Pinnacle to
acquire an additional common share in VRB Power for a price of
$1.15 CAD per share for a period of 1 year. In addition to the usual
regulatory hold period of 4 months, all shares are subject to a
contractual hold period as follows: 30% released for sale after
4 months; 50% released for sale after 6 months; 75% released for sale
after 9 months; 100% released for sale after 12 months.
- Termination of the African Licence Agreement under which VRB Power is
currently obliged to pay to Pinnacle an annual licence fee of
AUD $250,000 for a remaining term of 20 years. VRB Power has also been
released from its obligation to pay the fee which became due at the
end of May 2004.
- Pinnacle has settled the outstanding debt owed to VRB Power for
payment of AUD $100,000.
"The completion of this transaction represents a significant positive milestone in the Company's progress" states Vince Sorace, President of VRB Power Systems Inc. "VRB Power now directly owns and controls the patents related to the VRB technology. The acquisition of the patents will remove various restrictions which have in the past prevented the Company from fully exploiting the technology. In addition to the Company now being able to directly manage the commercialization of the technology, significant cost savings will be achieved. Costs to VRB Power Systems associated with maintaining Pinnacle as a subsidiary, the annual African License fees and individual project license fees have now been eliminated."
VRB Power and Pinnacle will continue business dealings on an arms length commercial basis in efforts to capture sales opportunities within the Australian markets.
About VRB Power
Based in Vancouver, B.C. Canada, VRB Power Systems Inc. ("VRB Power") is an electrochemical energy storage company that has commercialized the patented Vanadium Redox Battery Energy Storage System ("VRB-ESS") and has acquired the intellectual property rights and assets comprising the Regenesys Energy Storage System ("RGN-ESS") for the purpose of developing similar but larger scale flow battery systems. Both technologies represent a new enabling capability to effectively store electricity on demand. They can provide direct economic benefits to utilities and end users in terms of improved power quality, reliability and energy efficiency. They are particularly well suited to load levelling (peak shaving), electrical power arbitrage, grid stability enhancements, capital deferment and Remote Area Power Supply (RAPS) applications. The company is primarily focused on stationary power sources such as utility substations, commercial buildings, production facilities, telecommunication operations, cellular radio sites, and renewable resource generation such as wind farms - creating the ability to provide "firm" capacity. As "green" technologies, the VRB-ESS and RGN-ESS are characterized by very low ecological impact and are unlike most other conventional energy storage systems that rely on toxic substances such as lead, zinc or cadmium. VRB Power is publicly listed on the TSX Venture Exchange ("VRB") and the OTC Pinksheets ("VRBPF").
Warning: The Company relies upon litigation protection for
"forward-looking statements"
"The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release"
Vince Sorace President,
VRB Power Systems Inc.
newswire.ca
For further information
please contact: VRB Power Systems Inc. at (604) 697-8820. Or visit the company's web site at: www.vrbpower.com
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