ANNAPOLIS, Md., Aug. 24, 2012 /PRNewswire/ -- Clean Wind Energy Tower, Inc. (OTCBB: CWET, the "Company") announced that the Company wanted to take this opportunity to communicate to their shareholders and explain the apparent cause for the recent unexpected trading volume and drop in the Company's stock price.
On July 31, 2012 the Company published a shareholder letter in which it disclosed the various recent milestone events which were achieved by the Company propelling the progress of the development of the Tower.
These events included the approval and issuance of our "Core Patent" which provides distinct business advantages over a potential competitor and the completion of the critical atmospheric data models developed by our consultants particular to the San Luis site, confirming that the San Luis Tower can be reduced from the initial design height of 3,000 feet to 2,250 feet without compromising our goal of maintaining 2:1 cash flow coverage for debt service, while significantly reducing risk, costs, construction time as well as water consumption.
Based on this progress as well as other impending developments the Company thought it prudent to address a significant portion of outstanding debt on its balance sheet, so that new capital raised could be allocated to current and future needs.
On August 21, 2012, The Company announced that it had successfully restructured approximately $530,000 of its debt. Approximately $268,000 of current accounts payable was converted to one year notes, and approximately $262,000 of current accounts payable and reserves for payments due under the terms of a non-cancelable lease were retired in exchange for stock. The transactions dated July 13 and July 16, 2012 underlying the restructuring of the Company's debt, totaling 15,000,000 shares of common stock of the Company, were outlined and reported in an SEC form 8-K on August 21, 2012.
Again, the intended goal of the Company in this restructuring was to retire the indebtedness to better enable the Company to raise additional needed capital for future growth. Ronald W. Pickett, Chairman and CEO, commented earlier that, "We salute the shareholders who have stepped up to facilitate this transaction and appreciate the confidence and faith expressed by the note holders who agreed to defer payment for up to one year."
What The Company has determined is that upon the conclusion of the transaction, a couple of the new shareholders who participated in the debt restructuring transaction and had assured CWET management that their intentions were to become long term investors in the Company, began selling their newly acquired shares in the Company. The sale of these shares in significant quantities has driven down the trading price of the stock.
Mr. Pickett stated, "Even though we are extremely disappointed by the actions of these shareholders, we want to assure existing loyal shareholders that the Company is on track with its business plan and management is unaware of any other legitimate reason for the selling pressure on the stock."
About Clean Wind Energy, Inc.
Clean Wind Energy, Inc., a wholly owned subsidiary of Clean Wind Energy Tower, Inc., has designed and is preparing to develop, and construct large "Downdraft Towers" that use benevolent, non-toxic natural elements to generate electricity and clean water economically by integrating and synthesizing numerous proven as well as emerging technologies.
Our Company's core objective and focus is to become a leading provider of clean efficient green energy to the world communities at a reasonable cost without the destructive residuals of fossil fuel, while continuing to generate innovative technological solutions for today and tomorrow's electrical power needs.
In addition to constructing Downdraft Towers in the United States and abroad, the Company intends to establish partnerships at home and abroad to propagate these systems and meet increasing global demand for clean water and electricity. Clean Wind has assembled a team of experienced business professionals, engineering and scientific consultants with access to the breakthrough energy research upon which this technology is founded and the proven ability to bring the idea to market.
Clean Wind has filed several patents that the Company believes will further enhance this potentially revolutionary technology. Clean Wind Energy, Inc. is based in Annapolis, MD, and is traded on the OTCBB under the symbol 'CWET'.
For more information, please visit www.cleanwindenergytower.com.
Clean Wind Energy, Inc.
1997 Annapolis Exchange Parkway
Annapolis, Maryland 21401
E-mail: [email protected]
Investor Relations Contacts:
Phone: (855) 848-6937
Email: [email protected]
Benchmark Advisory Partners
Office (858) 568-7059
Fax (858) 429-5796
Cautionary Note Regarding Forward-Looking Statements
Statements included in this release may constitute "forward-looking statements". Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and the Company's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company's financial results, can be found in the Company's various filings with the Securities and Exchange Commission (SEC).
SOURCE Clean Wind Energy Tower, Inc.