CUI Global's International Distributor, BWG-Blue Flame, Signs Memo Of Understanding To Sell Vergence™ GasPT2 Devices In Mexico Valued At $5,000,000
TUALATIN, Ore., Aug. 14, 2012 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, today announced it has signed, through its international distribution partner BWG-Blue Flame, a Memorandum of Understanding (MOU) with Fermaca International, S. de R.L. de C.V., a sociedad de responsabilidad limitada de capital variable (Fermaca) for distribution of its patented Vergence™ Natural Gas Metering Device in the country of Mexico.
The MOU obligates Fermaca to purchase a "minimum initial order" of 200 units, valued at $5,000,000 (based on MSRP), following the successful completion of a thirty (30) day test of one device at Fermaca's facilities in the industrial zone of Toluca. In order to pass the test, the device must meet the +/-0.5% accuracy standard set forth in the American Gas Association ("AGA") Section 5 Standard, a standard the device has met or exceeded in all previous testing.
For more than 40 years, Fermaca has played a leading role in the development and construction of infrastructure in several of Mexico's key industries including the energy sector. (http://fermaca.com.mx/Fermaca%20Ingles/home.html). Fermaca was recently awarded the contract from Mexico's state power company, CFE, for operation of the 385km Chihuahua Corridor gas pipeline that will transport gas from the US for power generation in Chihuahua, Durango and Coahuila states. Fermaca presented the winning bid of US$310,000,000 to CFE through its subsidiary Tarahumara Pipeline. (http://www.bnamericas.com/news/electricpower/fermaca-subsidiary-wins-us310mn-pipeline-contract1).
CUI Global's president & CEO, William Clough, commented, "This Memorandum of Understanding continues our strategy of providing a test device to qualified parties if, and only if, that party agrees and is obligated to issue purchase orders and purchase a minimum number of our GasPT2 units immediately upon successful completion of the test."
"Previously, we had to provide the devices without such an obligation because of the new, unproven nature of the technology. Now, as a result of our successful testing in Italy at Snam Rete; in Poland with GazSystems; with Ofgem in the United Kingdom; and with Gasunie in The Netherlands, we are able to insist on confirmed purchase orders before we provide a test device," Clough continued.
"Significantly, this MOU also represents our first successful venture under the terms of our recently announced International Distribution Agreement with BWG-Blue Flame. It is the beginning of what I believe will be a very long and valuable relationship between CUI Global and BWG-Blue Flame," Clough concluded.
Patrick F. Campos, BWG's CEO, stated, "This is yet another very positive step forward as we continue to develop distribution networks for the Vergence™ Technology in partnership with CUI Global through our BWG-Blue Flame global distribution subsidiary. Fermaca is a very dynamic and well-respected player in the natural gas markets of Mexico. Fermaca recognizes the value and broad applicability of the Vergence™ Technology, and we are very pleased to be working with them in this very important market."
About CUI Global, Inc.
Delivering Innovative Technologies for an Interconnected World . . . . .
CUI Global is a publicly traded platform company dedicated to maximizing shareholder value through the acquisition and development of innovative companies and technologies. From its Vergence GasPT2 platform targeting the energy sector, to its subsidiary CUI Inc.'s industry leading digital power platform targeting the networking and telecom industries, CUI Global has built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. CUI Global prides itself on operating with the same level of integrity, respect, and philanthropic dedication that was put in place by CUI Inc.'s founder more than 20 years ago. It is these values that allow the company to make a difference in the lives of their customers, their community, their employees, and their investors. Recently, a move was made to merge and streamline resources with its subsidiary CUI Inc. in order to create a unified, international brand that now positions CUI Global for further strategic expansion.
About CUI Inc.
CUI Inc. is a technology company dedicated to the development, commercialization, and distribution of new, innovative electro-mechanical products. Over the past 20 years, CUI has become a recognized name in electronic components worldwide in the areas of power, interconnect, motion control, and sound. CUI's solid customer commitment and honest corporate message are a hallmark in the industry. CUI is a wholly owned subsidiary of CUI Global, Inc.
About Fermaca International, S. de R.L. de C.V.
A leader in the development of energy projects, Fermaca symbolizes a new way of doing business in the Mexican market. Fermaca is the ideal partner for companies seeking to do business in Mexico's Energy market. By combining a wide range of products and services, including Engineering, Construction, and Project Management, with our understanding of the complexities associated with developing here, we can guarantee long-term success in Mexico's energy trade. For more than 40 years, Fermaca has played a leading role in the development and construction of infrastructure in several of Mexico's key sectors including: telecommunications, transportation, healthcare, culture, education, and energy.
For more information, please visit http://fermaca.com.mx/Fermaca%20Ingles/home.html.
About The Belleau Wood Group (BWG)
The Belleau Wood Group (BWG) is a strategic asset-gathering platform built around a unique special projects development business. Based in Dubai U.A.E. and employing a highly skilled, multidisciplinary team of professionals, BWG operates worldwide across a wide range of industries in partnership with dynamic companies to create value and build upon BWG's unique proprietary portfolio of assets.
For more information, please visit www.bwginternational.com
Important Cautions Regarding Forward Looking Statements
This document references a memorandum of understanding that is subject to further negotiations prior to the execution of a final distribution agreement that is intended to reflect the terms of the memorandum of understanding. This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of our products. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission.
SOURCE CUI Global, Inc.