2013-11-22 15:31 ET - News Release
Mr. Robert Sim reports
First Choice Products Inc. has entered into a letter of intent with SP Power Farm Group Ltd. (SPpf) and SP Power Farm Group (BC) Ltd. (pfBC) to acquire certain distribution rights to unique and new wind power technologies, more fully described as exoPower wind turbines, exoHousing and exoTower, which collectively make up the exoPower system.
The exoPOWER system is a proprietary, patent-pending technology that constitutes a new class of wind turbines, referred to as the external axis wind turbines (EAWT). This technology is based on the blades, or sails, being positioned on the circumference of the turbine rotating on a rail-like track, whereby the torque load is evenly distributed along the outer edge of the turbine where the stress is shared by multiple bearings and supports. The design of the exoPower wind turbines allows the exoPower system to eliminate the centre axis or the central hub of a conventional three-blade wind turbine, eliminating the need for the nacelle (that is, the housing) and all of its components, and the need for oils, greases and coolants to keep the moving parts lubricated and in working order. Additionally, the wind blades or sails are positioned on the horizontal, enabling them to be pushed by the wind regardless of the direction the wind is travelling, unlike conventional three-blade wind turbines. Among the many other unique design features of the exoPower wind turbine technology is the scalability at the machine level and cumulative power generation by stacking of the exoPower wind turbines on top of each other.
SPpf is the intellectual property (IP) owner of the exoPower system, and pfBC has acquired from it the global rights of the exoPower system for the small-wind and mid-wind sectors. SPpf has completed research and development of the first-generation exoPower system, and the launch of commercialized product by pfBC and FCI is imminent.
Subject to Canadian National Stock Exchange approval, FCI shall receive from pfBC distribution rights for the exoPower wind turbine system for small-wind and mid-wind sectors (the two sectors, being defined as applications with a nameplate capacity of one kilowatt per hour to 1.5 megawatts per hour) applications for Canada under a private label, and further exclusive distribution rights for the exoPower wind turbine system for small-wind and mid-wind sectors for Canada for oil field applications under a private label. The consideration to be paid is the issuance of 2.5 million common shares over an 18-month period. FCI will increase its board of directors to five, and appoint two from the management and technical staff of the SP Power Group.
Concurrent with the acquisition, FCI will raise funds through a non-brokered private placement of up to three million units at five cents per unit with a 24-month warrant exercisable at 10 cents per warrant share. Funds are to enable continuing reorganization of FCI, and to that end, the 2012 audited financial statements are being prepared, as well as the subsequent 2013 annual financial statements and management discussion and analysis.
Robert Sim, president of First Choice Products, commented: "We believe the exoPower system is a ground-breaking technology for power generation. Globally, wind power generation has increased nearly tenfold from 2002 to 2012 (282.4 gigawatts in 2012 versus 238.0 gigawatts in 2011 versus 31.1 gigawatts in 2002), and all signs indicate wind power generation will continue to grow rapidly. With continuing strain on power supply and power representing a significant expense for all industrial customers, we believe we can provide solutions to help manage these costs and also help provide a source of recurring revenue for all customers who wish to capitalize on net-metering opportunities. Furthermore, we have the opportunity to generate power in a sustainable and environmentally friendly way with the exoPower system, which is something that we as management and shareholders can be proud of."
We seek Safe Harbor.
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