SaviCorp® Signs Master Distribution Agreement with Beijing FlyingGlob Environmental Technology Limited Company
Automotive innovator forms distribution partnership with Chinese environmental company
SANTA ANA, Calif., Oct. 14, 2014 /PRNewswire/ -- SaviCorp® (PINKSHEETS: SVMI) announces that it has entered into a five-year Exclusive Master Distribution Agreement with Beijing FlyingGlob Environmental Technology Limited Company, a company established in the People's Republic of China. According to the terms of the Agreement, FlyingGlob will promote, distribute and sell SaviCorp's signature line of DynoValve® automotive products within its exclusive territory, which is the People's Republic of China and its Special Administrative Regions of Hong Kong and Macau.
The distribution agreement follows extensive negotiations between the two companies and was preceded by a letter of intent executed in May 2014. SaviCorp traveled to China in July 2014 to meet with FlyingGlob's CEO, demonstrate the DynoValve® technology, and finalize the terms of the exclusive marketing and distribution agreement. Based on the better-than-expected test results reported by the Chinese Government's environmental testing agency, FlyingGlob entered into the distribution agreement, which establishes a minimum annual purchase volume of 500,000 DynoValve® units during the first year. In support of this requirement, FlyingGlob is to purchase an initial order of 50,000 units at a price of $8.25 million.
During the final four years of the contract, FlyingGlob has agreed to a minimum purchase of 5.5 million units, for a total minimum order of 6 million units during the five-year term of the agreement. The successful distribution and sale of the 6 million units is estimated to produce revenues of approximately $679.5 million. In addition, the agreement provides for a $30 million licensing fee to be paid by FlyingGlob that may be paid over the term of the agreement.
"The potential for SaviCorp's technology to play a key role in the pollution reduction effort underway in China represents a tremendous opportunity for the company and we are thrilled to have FlyingGlob as our partner in this endeavor. This is a giant step forward for SaviCorp because it also opens the door to significant possibilities in the future distribution of all our DynoValve® products," said Serge Monros, Chairman and CEO of SaviCorp. "Our ability to leverage the substantial environmental benefits of our products and align them with FlyingGlob's business model is the perfect marriage of technology and marketing."
With the development of a reliable distribution channel in the People's Republic of China, SaviCorp continues to aggressively expand its international sales scope. The Company's full line of automotive pollution control components will be implemented to full effect, providing a substantial reduction of environmentally detrimental emissions.
Beijing FlyingGlob Environmental Technology Limited Company is an energy enterprise operating in the field of energy conservation, environmental protection, science and technology research, and the development of eco-friendly equipment. Beijing FlyingGlob Environmental Technology Limited Company is an energy consumption enterprise in the field of energy saving, environment protection, science and technology research and development, and energy-saving equipment production. It relates to the manufacturing, processing and trading business in the above-mentioned field.
FlyingGlob has been in the environmental protection field since 2006. The company has always focused on innovation in the field of energy efficiency, improvement and optimization of energy-saving equipment production, and environmental protection technology development. Beijing FlyingGlob is a professional solution provider in the field of green technology. Its products are distributed in 20 provinces and cities nationwide in China, involving waste water treatment, electric power generation, petrochemical, metallurgy, steel, coal, chemical, and pharmaceutical processing. Beijing FlyingGlob has participated in the implementation of national projects since 2013, including introduction of high technology motor vehicle exhaust emission technologies to improve air quality.
SaviCorp® is an innovative automotive technology company that licenses, manufactures, distributes and services an array of patented technologies and products that reduce harmful emissions and improve fuel efficiency. The company, an evolution of more than twenty years of automotive engine emissions testing, materials research and development, was formed to create, support and license its patented supplementary vehicle Emissions Reduction Technologies (ERT). Using proprietary methods and processes, the company's flagship DynoValve® system protects the environment, reduces an engine's carbon footprint, increases gas mileage and improves engine performance, resulting in dramatic savings in both fuel and oil.
For more information regarding SaviCorp®, its agreement with Beijing FlyingGlob Environmental Technology Limited Company and its products or for information about its current and future product offerings, please visit http://www.savicorp.com/.
Forward-Looking Statement Disclosure
This press release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934 that reflect SaviCorp's current expectations about its future results, performance, prospects and opportunities, including statements regarding the potential results of the fulfillment of the terms and conditions of the distribution agreement. SaviCorp has no assurance that FlyingGlob will be successful in its marketing and sales efforts, or that it will meet its contractual obligations for making and funding the minimum purchase requirements. Where possible, SaviCorp has tried to identify these forward-looking statements by using words such as "anticipates", "believes", "intends", or similar expressions. These statements are subject to a number of risks, uncertainties and other factors that could cause actual events or results in future periods to differ materially from what is expressed in, or implied by, these statements. Although we believe that the expectations and assumptions upon which they are based are reasonable, we can give no assurance that such expectations and assumptions will prove to have been correct. Many factors could cause actual results to differ materially from our forward-looking statements. SaviCorp assumes no obligation to update or revise any forward-looking statements as a result of new information, future events, and changes in circumstances or for any other reason.
Please direct inquiries to:
SaviCorp, Inc., formerly known as Savi Media Group, Inc.
Toll Free: 877-611-7284
Local: 714-312-5352
SOURCE SaviCorp
Share this article