Composite Technology Completes Acquisition of the EU Energy Group of Wind Turbine Manufacturers
Wednesday July 5, 8:10 am ET
IRVINE, Calif., July 5 /PRNewswire-FirstCall/ -- Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTC - News) is pleased to announce the completion of the acquisition of EU Energy Ltd., (formerly EU Energy plc), the owner of the EU Energy and DeWind group of companies. EU Energy was valued at $60.7 million and, by agreement with its shareholders, CTC has paid for the acquisition by issuing 39,169,670 shares of restricted common stock in exchange for the entire share capital of EU Energy taking into account the value of CTC common stock at its close on May 11, 2006.
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EU Energy Ltd will now operate as a wholly owned subsidiary of CTC and Mr. Michael Porter, the former CEO of EU Energy, has agreed to hold the position of President of CTC and to continue to manage the new wind division. Mr. Benton Wilcoxon remains as CTC's Chief Executive Officer and there are no changes to its Board of Directors.
With the acquisition, CTC benefits from a number of turbine reserve agreements with 5 separate North American wind farm operators signing between February and June 2006 for the acquisition of its new DeWind 2 megawatt D8.2 wind turbines, specially designed for the North American market. These agreements are for the delivery of a total of 1313 turbines through 2012 and represent anticipated revenue of $2.845 billion over the same period. Deliveries are scheduled to commence after 12 months with approximately 100 committed for delivery in 2007 and a further 50 reserved.
The D8.2 turbines will initially be assembled at the present German facilities in Lubeck with a North American assembly plant also scheduled for opening during 2007. CTC, by virtue of this acquisition, has acquired an impressive engineering team that is expected will ensure quality control and timely delivery, as well as being instrumental in organizing North American production.
CTC has also acquired non-exclusive license agreements with two companies to produce and sell the existing 1.25 megawatt D6 turbines in China and a third non-exclusive license agreement with another Chinese company to produce and sell the existing 2 megawatt D8 turbine in that market. CTC will continue negotiations based on a signed Letter of Intent regarding the creation of a joint venture to produce the D6 turbines in India.
Benton H Wilcoxon, CEO of CTC stated, "I am delighted to announce the close of this acquisition. Our entrance to the renewable energy market comes at an important time in the evolution of wind energy and with products we believe are superior in terms of reliability and performance. We believe that the combination of German technologies that make up the DeWind D8.2 series is a significant breakthrough and ushers in a new era in wind generation."
Shares of CTC common stock issued in payment for the acquisition are unregistered and therefore subject to SEC resale restrictions including Regulation S and major shareholders are additionally subject to the terms of a lock-up agreement.
Full details of the acquisition will be filed under Form 8-K with the Securities and Exchange Commission within the next four business days. |
