Quantum Technologies Enters Into Letters of Intent to Sell Certain of its Schneider Power Wind Farm Assets
LAKE FOREST, Calif., March 13, 2013 /PRNewswire/ -- Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ: QTWW), a global leader in natural gas storage systems, integration and vehicle system technologies, today announced that it and its wholly owned subsidiary, Schneider Power Inc., have entered into two separate non-binding letters of intent with unrelated third parties for the sale of Schneider Power's 1.6 Megawatt (MW) Providence Bay operational wind farm, its 10.0 MW Trout Creek wind farm development project and certain other Schneider Power development projects. Provided that the definitive terms are agreed upon and binding agreements are entered into and all closing conditions are satisfied, the sale of the Providence Bay wind farm is expected to close near the end of March 2013 and the sale of the Trout Creek and other development assets is expected to close near the end of April 2013. Total cash proceeds from these potential transactions, including the return of deposits made with respect to these projects, could be up to Canadian Dollar (CAD) $3,646,000, of which CAD $1,752,250 in cash proceeds is anticipated to be received in connection with the closings and the remaining amount contingent upon the buyers bringing the development assets into commercial operation in the future. In addition, the buyer of the Providence Bay wind farm would assume approximately CAD $1.1 million in bank debt and the buyer of the Trout Creek development project would assume CAD $236,709 of obligations.
The Company has also received formal offers and letters of interest for Schneider Power's 10.0 MW Zephyr operational wind farm, its 50.0 Megawatt development project in the Dominican Republic and its 1.0 MW development project in the Bahamas that are currently being evaluated.
"As previously announced, the Company's intent is to completely dispose of all of Schneider Power's operating assets and development projects and we are making great strides in our efforts to do so," stated Brian Olson, President and Chief Executive Officer of Quantum. "We have determined that we can maximize value by selling off individual project assets and are confident that we will be able to monetize these assets, generate meaningful cash proceeds and reduce the amount of debt on our balance sheet over the next 6 months."
The Trout Creek letter of intent calls for a purchase price of CAD $1,525,000, of which CAD $381,250 would be received at closing in exchange for 74.9% of the ownership interests in the project. The buyer would also receive an irrevocable option to purchase the remaining 25.1% ownership interest for CAD $1,143,750, which option must be exercised if and when the project development is completed and the wind farm goes into commercial operation. In addition, the buyer has agreed to reimburse the Company and assume obligations in the aggregate amount of CAD $626,709 related to development deposits and costs incurred to date for the project and to be solely responsible for all future project development costs and expenses. Further, in connection with the close of the transaction, the Company would receive a return of a development deposit in the amount of CAD $200,000 from an entity that provides power transmission services.
The Trout Creek letter of intent also covers three other development projects owned by Schneider Power. For the sale of the three projects, the Company would receive CAD $75,000 at closing for the sale of 74.9% of the ownership interests in such projects plus the Company will receive an additional CAD $250,000 for the remaining 25.1% ownership interest for each of the three projects that is completed and goes operational. Following the closing, the buyer would be solely responsible for all project development costs and expenses. Further, in connection with the planned sale of the project assets, the Company would receive a return of certain development deposits in the aggregate amount of CAD $300,000 from the Ontario Power Authority.
The Providence Bay letter of intent calls for the purchase and sale of all of the assets of the Providence Bay wind farm for a purchase price of CAD $406,000, payable in cash at closing. The buyer would also assume approximately CAD $1.1 million of bank debt and certain other project related liabilities.
Quantum Fuel Systems Technologies Worldwide, Inc. is a leader in the development and production of natural gas fuel storage and system technologies, alternative fuel vehicles, and advanced vehicle propulsion systems. Quantum's portfolio of technologies includes natural gas and hydrogen storage and metering systems, electronic and software controls, hybrid electric drive systems, and other alternative fuel technologies and solutions that enable fuel efficient, low emission natural gas and hybrid, plug-in hybrid electric and fuel cell vehicles. Quantum's powertrain engineering, system integration, vehicle manufacturing, and assembly capabilities provide fast-to-market solutions to support the production of natural gas, plug-in hybrid, hydrogen-powered hybrid, fuel cell, and specialty vehicles, as well as modular, transportable hydrogen refueling stations. Quantum's customer base includes automotive OEMs, fleets, aerospace industry, military and other governmental agencies, and other strategic alliance partners. Quantum's wholly owned subsidiary, Schneider Power Inc., and affiliate, Asola Solarpower GmbH, complement Quantum's alternative and renewable energy presence through the development and ownership of wind and solar farms, and the manufacture of high efficiency solar modules for traditional and automotive applications. Quantum is headquartered in Lake Forest, California, and has operations and affiliations in the USA, Canada, Germany and India.
Forward Looking Statements:
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this report, other than those that are historical, are forward-looking statements and can generally be identified by words such as "may," "could," "will," "should," "assume," "expect," "anticipate," "plan," "intend," "believe," "predict," "estimate," "forecast," "outlook," "potential," or "continue," or the negative of these terms, and other comparable terminology. Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements. Risk factors include whether the parties can agree upon the definitive terms, whether all closing conditions set forth in the definitive agreements can be met, whether the transactions contemplated by the non-binding letters of intent are completed, whether the Trout Creek wind farm and other development assets are developed and go operational, whether Schneider Power assets can be monetized within the expected time frame, if at all, and the amount of proceeds received from such sales. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.
More information can be found about our products and services at http://www.qtww.com/ or you may contact:
Brion D. Tanous
Principal, CleanTech IR, Inc.
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SOURCE Quantum Fuel Systems Technologies Worldwide, Inc.