Intended Acquisition to Support Projects in Company's Pipeline, Expand Position as a Renewable Energy and Desalinated Water Leader
LANCASTER, PA / ACCESSWIRE / August 9, 2018 / Ocean Thermal Energy Corporation (OTCQB: CPWR), a renewable energy power plant and seawater cooling owner, operator, and developer for Ocean Thermal Energy Conversion (OTEC) and Seawater Air Conditioning (SWAC), announced today that it has signed a Letter of Intent (LOI) to acquire an established, profitable, and experienced company in the heavy-commercial air conditioning business.
This would be a financially attractive acquisition supporting new geographic markets and existing multimillion-dollar revenue streams. The acquired company would bring significant heavy-commercial air conditioning expertise and strong operational synergies. The acquisition impact would improve the markets of both companies.
Jeremy P. Feakins, Chairman and CEO of Ocean Thermal Energy Corporation, said, "The proposed acquisition offers an extraordinary opportunity to amplify and strengthen our existing business. We believe the combination of both businesses could create a lifetime of possibilities. The acquisition would also accelerate our strategy to pursue sustainable energy and water production and broaden our leadership in marine renewable energy. We would gain additional business, which will support our growing pipeline of projects. We look forward to the closing of the deal and providing investors with further details."
Ocean Thermal Energy Corporation has several projects in its pipeline, including developing the "OTEC EcoVillage", the world's first community powered entirely by fossil-fuel free OTEC electricity and cooled by SWAC technology. OTE's technology will also produce water for drinking, food production, and economic development.
The transaction is expected to close in October 2018.
Under the terms of the Letter of Intent signed on August 7, 2018, the transaction is subject to customary closing conditions, including final due diligence and an agreement that the current managers of the business remain for a period not exceeding 6 months from Closing. Thereafter, the managers will enter consulting agreements with the business starting on or about April 1, 2019, with consulting fees and time available from the managers to be negotiated in good faith. Likewise, the lease or purchase of the buildings used by the business shall be negotiated in good faith. Confidentiality conditions will remain in place until the final Closing.
About OTEC and SWAC
Ocean Thermal Energy Conversion (OTEC) is a game-changing technology that leverages the temperature difference in the ocean between cold deep water and warm surface water in the tropics and subtropics to generate unlimited energy without the use of fossil fuels. It boasts a competitive advantage over alternative sources of electricity production regarding accessibility, predictability, affordability, and emissions. Seawater Air Conditioning (SWAC) technology produces air conditioning without the use of chemical agents. Acting alone, SWAC can reduce electricity usage by up to 90% when compared to traditional air conditioning systems. Both technologies can be configured to produce fresh water for drinking, agriculture, and economic development. Supporting the efforts for more sustainable living in developing nations around the world, OTE's OTEC and SWAC technologies drastically reduce the output of carbon emissions and produce renewable base-load (24/7/365) energy without the use of fossil fuels. This translates to slowing down climate change and cleaning up our atmosphere for a healthier planet for all.
About Ocean Thermal Energy Corporation
Ocean Thermal Energy Corporation (OTE) has over 25 years of experience and unrivaled know-how of optimal designs and economics of commercial Ocean Thermal Energy Conversion (OTEC) and Seawater Air Conditioning (SWAC) systems. OTE is an environmentally-focused project developer, using the skills and many years of experience of its Marine Scientists, Oceanographers, and Engineers to design, finance, build, own, and operate commercial scale, cost-effective, and scalable OTEC and SWAC systems worldwide.
OTE concentrates on emerging markets, which provide the opportunity to bring improved conditions to parts of our world devastated by a shortage of water and high-energy costs. These opportunities provide very attractive returns. Our technologies offer practical solutions to mankind's three oldest and most fundamental needs: clean drinking water, plentiful food, and sustainable, affordable energy without the use of fossil fuels.
For additional information regarding OTE, please visit the company's website at www.otecorporation.com.
Safe Harbor Statement
Except for the historical information contained herein, this press release contains forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that statements in this press release regarding OTE's plans or expectations constitute forward-looking statements. These statements involve risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. These risks and uncertainties include, without limitation: a decision by any of the interested parties to not enter into a definitive power purchase agreement; the inability of the parties to successfully negotiate and enter into a definitive power purchase agreement; the inability of the parties to meet every closing condition contained in such definitive power purchase agreement and the protection and maintenance of OTE's intellectual property rights.
Additional information and factors that could cause actual results to differ materially from those in the forward-looking statements are contained in OTE's periodic reports filed with the Securities and Exchange Commission under the heading "Risk Factors." Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made, and the facts and assumptions underlying the forward-looking statements may change.
Except as required by law, OTE disclaims any obligation to update these forward-looking statements to reflect future information, events or circumstances.
Ocean Thermal Energy Corporation Contact:
Becky Wink Cooper
SOURCE: Ocean Thermal Energy Corporation