NEW YORK, NY--(Marketwired - Aug 5, 2013) - ForceField Energy Inc. ("ForceField") (
During the latter half of 2012 and throughout the first half of 2013, the Company has focused the majority of its LED marketing efforts in territories in Latin America where the cost per kilowatt hour of electricity is very high, and in which the opportunity to generate significant energy savings changing from traditional lighting to LED lighting is the most compelling and needed. Additionally, the Company has identified and is evaluating significant LED bid proposals and is involved in trials in Europe, Latin America and the United States. As a result, the Company has created a strong backlog of opportunities and has submitted bid proposals, executed signed agreements or initiated pilot programs representing more than $100 million in potential revenue. A summary of the Company's activity is as follows:
- On May 28, 2013 announced the signing of a three-year sub-distribution agreement with a Wiesbaden, Germany company focused on the energy sector and has received an initial purchase order for the sale and installation of its LED lighting products at two public schools. If the installation at these schools is successful, an additional 243 schools could be retrofitted under the same agreement.
Signed Letters of Intent ("LOI")
- On July 16, 2013 announced the signing of a Letter of Intent ("LOI") with Empresa de Servicios Públicos de Heredia ("ESPH"), a utility company based in Heredia, Costa Rica, for the installation of 19,000 of its Model SL3 LED streetlights to replace existing lighting in ESPH's territory. The project is estimated to generate more than $21 million in revenue for ForceField over the ten-year term of the agreement based upon a shared savings model.
- On July 25, 2013 announced that it had expanded the size and scope of its proposal under its previously announced LOI with ESPH to now include a 30-day residential home trial of smart electric meters ("smart meters") that, if successful, could result in the installation of approximately 80,000 smart meters in residential homes located in Heredia's jurisdiction. The total value of the project could exceed $20 million in revenue if fully implemented.
- On April 25, 2013 the Company signed a letter of intent to acquire a 60% controlling interest in 1-800 NY Bulbs Ltd.(" NY Bulbs") On July 31, 2013 the Company discontinued its efforts to consummate the acquisition of the 60% interest.
LED Streetlights Installed or Being Tested at:
- CNFL(Costa Rica Utility) Costa Rica
- Coopelesca(Costa Rica Utility) Costa Rica
- ESPH (Costa Rica Utility) Costa Rica
- At key locations in Nicaragua, Austria, and Germany
LED High Bay Lights Installed (Designed for Usage in Large Warehouse Facilities with High Ceilings) and Being Tested at:
- A division of Jacobson Warehouse Co. Inc., in Plaquemine, LA
- A division of International Paper in Bogalusa, LA
- JohnPac, Inc. in Crowley, LA
- Harbor Pallets & Packaging, Inc, LA
- A division of a Fortune 100 oil company
LED Tubes and Other Products Installed and Being Tested at:
- A division of one of the largest privately held companies in the world located in Costa Rica
- One location in Costa Rica of a national brands franchisee that operates various brands of franchises at 150 locations across Latin America.
- Harbor Pallets & Packaging, Inc., Louisiana
- Hospital Clinica Biblica, Costa Rica
- Key locations in the United States, Germany and Ireland
New Sales Representation Agreement
- On June 25, 2013 signed an LED distribution agreement with International Sales Network, Inc. a Georgia based Company with a large sales force of independent representatives across the USA.
The realization of revenue from the activity summarized above will be dependent on the successful completion of initial trials, consummation of definitive agreements, delivery of LED product by the Company's LED supplier, and the ability of both the Company and the end-users to obtain financing on reasonable terms.
Richard St-Julien, ForceField Energy's Chairman, commented, "In the first half of 2013 we have made excellent progress in positioning our LED operating segment to generate very substantial future growth. Our goal is to drive awareness and enthusiasm for the value, quality, and energy efficiency of our products. In a very short period of time we have put into place a strong foundation of distributors and representatives in various countries and all of the elements necessary for future revenue growth in our LED division, including financing packages with major institutions and banks. We have expanded our global reach as evidenced by the signing of new strategic distribution partnerships that span North America, Latin America, and Europe. We have also broadened our products and solutions offering with the signing of a strategic partnership with a leading smart electric meter company which has already created exceptional new revenue opportunities. Although our LED revenue to date has been limited, we believe the strength of our products and our broader platform will continue to generate new and expanded revenue opportunities in the high growth multi-billion LED market."
Jason Williams, ForceField's Chief Financial Officer commented "In 2013, in addition to building our international distribution base, we have been highly focused on our cost structure and capital allocation to ensure we have the necessary resources to support our business development activities and our anticipated growth. The signing of an agreement with two "Top 10" U.S. banks for project financing to support the Company's LED lighting initiatives is one key example of this. In addition, we are in active discussions with potential global installation partners to enable us to focus our resources on sales and marketing efforts for our core product and service offering; and where we can obtain the highest return on capital for our shareholders. As a result, we have made the strategic decision to not move forward with our previously announced deal to acquire a majority interest in NY Bulbs. We believe this focused approach will enable us to better leverage our resources to support our core growth initiatives.
About ForceField Energy Inc.
ForceField Energy is a global company whose products and solutions focus on renewable energy and improved energy efficiency. ForceField's subsidiary, TransPacific Energy Inc. ("TPE") has patented a technology which uses proprietary multiple component fluids that are environmentally sound, non-toxic and non-flammable. Custom formulated mixtures efficiently capture and convert heat directly from the heat source at temperatures ranging from 75° F to 950° F. TPE's technology offers applications at broader temperature ranges than other energy recovery systems. TPE's systems in certain applications reduce operating and maintenance costs thereby significantly improving return on capital expenditures thus making the purchase of waste heat recovery systems which previously yielded nominal savings, economically viable. ForceField is the exclusive distributor in the U.S., Canada, Mexico, Latin America, and the Caribbean of Light Emitting Diode ("LED") commercial lighting products and fixtures for a premier LED manufacturer, Lightsky. An LED is a semiconductor device which converts electricity into light. The LED light is considered "green" because of the absence of dangerous chemicals and an accompanying significant reduction in energy consumption depending on the application, from 50% to 70% of traditional lighting products.
ForceField is a distributor for PowerOneData International, Inc. a company that provides Advanced Metering Infrastructure and ASLM solutions to the international energy markets, reducing energy resource consumption and its negative impact on the environment and public health ForceField is also a significant manufacturer and distributor of trichlorosilane ("TCS") in China. TCS is a specialty chemical primarily used in the production of polysilicon, which is an essential raw material in the production of solar cells for PV panels that convert sunlight to electricity. TCS is considered to be the first product in the solar PV value chain before polysilicon, and is also the principal source of ultrapure silicon in the semiconductor industry. For additional information regarding ForceField Energy Inc. or Transpacific Energy, Inc., please visit the companies' websites at www.forcefieldenergy.com, www.transpacenergy.com, www.lightsky-led.com or contact Richard St-Julien at (212) 672-1786.
Except for statements of historical fact, the matters discussed in this press release are forward-looking. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "expects" or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include (i) the Company's ability to generate significant revenues from its LED lighting segment, (ii) the Company's ability to obtain adequate financing to achieve its LED business plan, (iii) the successful installation, completion of trials and efficacy of the Company's LED lighting products in generating energy savings and lighting quality, (iv) in certain cases the ability of end-users to obtain significant levels of financing, (v) and other factors without limitation which are detailed in documents we file from time to time with the Securities and Exchange Commission, which are available at www.sec.gov.