DALLAS, July 14, 2020 /PRNewswire/ -- Alternet Systems, Inc. (USOTC: ALYI), an innovative electric vehicle company concentrating on the African market, today published a bulletin outlining in further detail the company's recently announced development project to construct an advanced electric mobility site in Africa covering approximately 100 acres. The site is a key component of an overall $300 million initiative designed to expand rapidly beyond the initial $300 million scope. ALYI has executed a $2.5 million investment deal intended to fund the design and engineering of the advanced electric mobility site. The $2.5 million is an advance on a $25 million investment currently committed under a letter of intent. The bulletin is included below in its entirety within this release:
Bulletin: Advanced Electric Mobility Site Supporting $300 Million Initiative
ALYI in an innovative company dedicated to electric mobility. The company was founded on developing a patented portfolio of lithium battery technologies and has evolved into its current focus on developing complete electric mobility solutions for the African market.
ALYI CEO, Dr. Randell Torno, contends that the immediate opportunity for electric powered transportation growth in Africa by far exceeds the electric powered transportation opportunity anywhere else in the world and that the electric mobility technology innovations that will be developed for Africa will ultimately form the foundation of commercial electric powered transportation everywhere. In short, Africa is the global proving ground for electric powered transportation.
Long-Term Corporate Sustainability Strategy
ALYI's evolutionary approach to developing electric mobility solutions was designed for sustainability. Separate from ALYI's innovative, paradigm changing, electric mobility initiative, management maintains a residual consulting business leveraging the team's extensive operational experience in Africa. The consulting operations cover fundamental expenses and have permitted the company to endure its way through to the prevailing investment market acceptance of electric vehicle innovation.
CEO Dr. Torno has been working on the ground in the Middle East or Africa since 2007. He was recalled to active duty as a Lieutenant Colonel in the U.S. Army and deployed to Iraq in 2007. He received the Bronze Star in the course of his combat tour. After finishing his tour in Iraq, Dr. Torno was requested by name for duty in Addis Ababa, Ethiopia, a deployment lasting 3 years. He retired from the Army in 2011 and was shortly thereafter contracted by Northrop Grumman and other companies to work in Africa on a myriad of projects in countries from Senegal to South Africa. He holds a PhD in Public Policy and Political Economics from the University of Texas.
Ed Bollen, the President of ALYI served 30 years with the U.S. Government, first as a U.S. Marine and then working within the U.S. intelligence community. Since then, Mr. Bollen has worked on management consulting projects in North America, the Middle East, Africa, Europe, Asia, the Caribbean and South America. He has supported military and law enforcement operations, as well as aviation and maritime services. Mr. Bollen has worked on projects with Boeing, Bell Helicopter, Sikorsky Aircraft, Raytheon, General Electric, Lockheed, Marin Marietta, L-3 Communications, Electric Boat and Newport News Shipbuilding. He has trained United Nations' international arms inspectors; established a counterterrorism task force in Ethiopia; worked directly with the Palestinian Authority in Gaza and Jericho, and been the boots on the ground in Liberia at the height of its second civil war implementing counter insurgency measures. Mr. Bollen has an undergraduate degree in history from Florida State University and graduate degree in comparative religion and religious history from The College of William & Mary.
ALYI's Initial $300 Million Electric Mobility Initiative And Beyond
From its founding in patented lithium technology commercialization, ALYI has evolved into an innovative electric vehicle company with an initial $300 million electric mobility initiative in Africa designed to rapidly expand beyond the initial $300 million scope. The $300 million initiative includes a key customer for ALYI's Revolt Electric Motorcycle, and a comprehensive annual electric mobility event designed to both fuel the branding and marketing of ALYI's current and future electric vehicles in addition to serving as a catalyst in the development of all ALYI's future electric mobility solutions.
ALYI's Revolt Electric Motorcycle is a rugged design that has now endured two rounds of prototyping and testing and is ready for production. The Revolt Electric Motorcycle will be manufactured in Kenya initially for the Kenyan ride-share market. Motorcycles are already widely accepted and in use as taxi's in Africa.
The branding and marketing for ALYI's current and future electric mobility solutions will be built on the company gaining recognition for its annual electric mobility conference and symposium that includes an already branded anchor event. The anchor event is part of an existing and well established $6 billion industry. The annual electric mobility conference and symposium and anchor event is expected to contribute significantly to both ALYI's top and bottom line, in addition to providing a catalyst to the development of future ALYI mobility solutions.
The annual electric mobility conference and symposium and anchor event will have a dedicated facility in Kenya. The advanced electric mobility center will host the annual event and the facility itself will serve as a key component of generating revenue and advancing electric mobility technology. As currently contemplated, the facility is anticipated to span approximately 100 acres as necessary to support its intended function.
The company is containing the release of any further specifics regarding the facility or the anchor event at this time, to maintain competitive advantage and in respect to certain disclosure restrictions.
ALYI has executed a $2.5 million investment deal intended to fund the design and engineering of the advanced electric mobility site. The $2.5 million is an advance on a $25 million investment currently committed under a letter of intent.
Cryptocurrency Partner's $25 Million Investment And $50 Million Valuation
On June 30, 2020 ALYI entered into a letter of intent (LOI) for a $25 million first tranche investment to fund ALYI's overall $300 million electric mobility initiative in Africa.
The planned ALYI investment is one component of the investor's overall $100 million initial cryptocurrency offering (ICO) strategy. The investor is independently launching an ICO dedicated to funding ALYI's overall $300 million electric mobility project in Africa with future plans to fund additional electric mobility initiatives in Africa. The investor has already partitioned a cryptocurrency on the Ethereum Blockchain in advance of the planned ICO.
The $25 million first tranche investment is structured at a $50 million pre-money valuation of ALYI in consideration of the company's $300 million electric mobility initiative. The $25 million first tranche investment represents a valuation of ALYI common stock at approximately $0.05 per share.
The first $25 million tranche is structured to result in a change of control with the investor becoming the controlling shareholder. A management change is not part of the planned investment. Randell Torno will remain as the Chief Executive Officer. A second tranche at a valuation calculated after the first $25 million investment is planned before the end of the year.
$2 Billion Niche Expected To More Than Double To $5 Billion By 2024
"Africa is urbanizing faster than any other continent, at a rate of 4% every year, compared to the global average of 2%. Its rapidly growing urban population continues to strain existing infrastructure - transport and energy, in particular." - World Economic Forum
"In 2017, 77% of Kenya's electricity demand was met through renewable energy. - Kenya Power 2017 Annual Report
The growth opportunity to provide net new transportation solutions in Africa is much higher than in any developed region where most electric vehicle companies are currently concentrating market development efforts. Within developed economic regions, the electric vehicle opportunity requires replacing combustion engine transportation rather than simply providing a net new transportation opportunity.
With leading urbanization and sustainable energy statistics, Africa is arguably better positioned for electric vehicle growth than other developing economic regions.
With the current strain on existing infrastructure in Africa combined with the advance and acceptance of ride-share technologies, it is unlikely the African economy will ever grow to accept the individual consumer vehicle owned transportation paradigm that most electric vehicles are being produced to serve. Africa is much more likely to evolve and grow its existing $2 billion in annual sales ride-hailing and taxi market expected to grow to $5 billion by 2024, than change courses and adopt an induvial consumer owned vehicle transportation model.
ALYI's $300 million initiative is centered on penetrating that $2 billion market and leading its evolution into the adoption of electric vehicles and ride-sharing applications. ALYI management has carefully and deliberately identified and carved out a substantial niche for itself within the overall electric vehicle market. That niche is only the start of ALYI's long-term plans. ALYI management expects to leverage the African electric vehicle ride-share niche as a foothold to expand into the overall electric vehicle market expected to exceed $1 trillion by 2027.
For more information and to stay up to date on the latest developments, please visit: http://www.alternetsystemsinc.com
This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies' contracts, the companies' liquidity position, the companies' ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur.
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