Igo announcementiGo® Enters Rechargeable Battery Market Through Strategic Partnership with PureEnergy Solutions
Business Wire
8:00 AM (GMT-05:00) Eastern Time (US & Canada) Feb 24, 2011
iGo, Inc. (Nasdaq: IGOI), a leading provider of eco-friendly power management solutions and mobile electronic device accessories, today announced the signing of a marketing, distribution and licensing agreement with PureEnergy Solutions, the world’s only manufacturer of rechargeable alkaline batteries. Pursuant to the agreement, iGo will be the exclusive marketer and distributor of PureEnergy Solutions’ patented rechargeable alkaline batteries to retailers worldwide (excluding China) with non-exclusive distribution rights in Africa.
iGo also simultaneously entered into an agreement with Premier Tech Home & Garden to take over its current distribution rights for PureEnergy batteries in Canada, including the transition of its current customer relationships for PureEnergy batteries with retailers such as Walmart Canada. These accounts currently represent approximately $2 million in annualized revenue. As part of the agreement with Premier Tech Home & Garden, iGo purchased current inventory to support sales to these accounts.
The batteries and chargers will be sold worldwide primarily under the iGo Green® brand, although some existing customers in Canada will continue to sell the batteries and chargers under the PureEnergy brand and the retailers’ own private label brands. iGo will initially offer rechargeable alkaline batteries in AA and AAA sizes along with multiple charging solutions, such as wall outlet and USB chargers.
Rechargeable alkaline batteries can be used in any device that uses disposable alkaline batteries, with the additional benefit of being rechargeable up to 100 times. Selling for approximately 30-40% less than other rechargeable battery options (such as nickel metal hydride or lithium batteries), rechargeable alkaline batteries are the least expensive and most environmentally friendly option in the rechargeable battery market. Unlike nickel metal hydride rechargeable batteries, rechargeable alkaline batteries will also hold their charge for up to seven years.
“We are very excited to sign this agreement with PureEnergy Solutions and enter the rechargeable alkaline battery market,†said Michael D. Heil, President and Chief Executive Officer of iGo, Inc. “This is a great strategic fit with our existing product portfolio and retail distribution network, and further strengthens iGo’s positioning as a leader in ‘green’ power solutions. Rechargeable batteries comprise 15-20% of the overall battery market in Europe and Canada, but less than 5% in the United States. We believe the market for rechargeable alkaline batteries has strong growth potential as more consumers become aware that there is an inexpensive alternative to wasteful, single-use disposable alkaline batteries. We believe that we can steadily grow the sales of this product line in the coming years as we leverage our retail distribution network and increase the number of locations where these batteries are sold in the United States and Europe.â€
As part of its agreement with PureEnergy, iGo will pay certain ongoing royalties to PureEnergy on future sales for the use of the PureEnergy brand, the use of PureEnergy charger technology, and iGo sales to specific customers. The initial term of the agreement is five years, provided, however, that iGo must achieve annual minimum sales targets in order to retain its exclusive distribution rights, otherwise its distribution rights will convert to non-exclusive distribution rights. If iGo achieves its annual minimum sales targets, it will have the option to extend the agreement for a total of 15 years.
About iGo, Inc.
iGo, Inc. offers a full line of innovative accessories for almost every mobile electronic device on the market. Whether a consumer wants to power, protect, listen to, share, cool, hold or connect to their device, iGo has the accessories they need. iGo is also a leader in developing eco-friendly power solutions based on its patented iGo Green® technology, which automatically reduces the wasteful and expensive standby, or “vampire,†power consumed by electronic devices.
iGo’s products are available at www.iGo.com as well as through leading resellers and retailers. For additional information call 480-596-0061, or visit www.igo.com.
iGo is a registered trademark of iGo, Inc. All other trademarks or registered trademarks are the property of their respective owners.
About Pure Energy Solutions, Inc.
Pure Energy Solutions, Inc. is a Boulder, CO-based company that is revolutionizing power delivery to portable electronic devices through its branded WildChargeâ„¢ wire-free power technology, and is a leading supplier of sustainable and environmentally responsible rechargeable battery products with its RAMcellâ„¢ rechargeable alkaline batteries. PureEnergy Solutions is the first company to offer commercially available wire-free charging technology that works with multiple devices across multiple brands, and carries the Eco Logo certification for its environmentally responsible battery designs and products. Through its Technology Licensing Program and WildCharge Mark of Interoperability, PureEnergy Solutions allows licensing partners the ability to create and manufacture products that integrate wire-free technology into their solutions and bring them to market quickly. PureEnergy Solutions enjoys a growing network of licensing partners and distributors, and its products are sold in over 75 countries. For more information go to www.pureenergy.com.
This press release contains “forward-looking statements†within the meaning of Section 21E of the Securities Exchange Act of 1934. The words “believe,†“expect,†“anticipate,†“should,†and other similar statements of our expectation identify forward-looking statements. Forward-looking statements in this press release include the belief that the rechargeable alkaline battery market has strong growth potential, and the expectation that iGo will steadily increase sales of its rechargeable alkaline batteries as it increases the number of locations where the batteries are sold. These forward-looking statements are based largely on management’s expectations and involve known and unknown risks, uncertainties and other factors, which may cause the Company’s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause results to differ materially from those expressed in these forward-looking statements include, among others, the rate of adoption of rechargeable alkaline batteries by more consumers; our ability to expand the distribution network for our new rechargeable alkaline batteries; our dependence on large purchases from two significant customers; our ability to expand and diversify our customer base; our ability to expand our combined revenue base and develop new products; our loss or failure to replace any significant retail or distribution partners; our failure to expand or protect our proprietary rights and intellectual property; our failure to complete development of products in a timely manner, including the iGo Green chip; our failure to achieve the performance criteria required of our products by our customers; fluctuations in our operating results because of: the timing of new product and technology introductions and product enhancements, relative to our competitors, market acceptance of our products, the size and timing of customer orders, our ability to effectively manage inventory levels, delay or failure to fulfill orders for our products on a timely basis, distribution of or changes in our revenue among distribution partners and retailers, our inability to accurately forecast our contract manufacturing needs, difficulties with new product production implementation or supply chain, our suppliers’ ability to perform under their contracts with us, product defects and other product quality problems, the degree and rate of growth in our markets and the accompanying demand for our products, our ability to expand our internal and external sales forces and build the required infrastructure to meet anticipated growth, and seasonality of sales; increased focus on consumer electronics retailers on their own private label brands; decreasing sales prices on our products over their sales cycles; increased reliance upon RadioShack and Walmart; the termination of reseller and distributor agreements or reduced or delayed orders; difficulty in predicting sales to our customers resulting in increased levels of inventory; lack of visibility to end user customers; resellers and distributors promotion of competitor products; corporate and other sales incentive changes at our resellers and distributors; our failure to introduce new products and product enhancements that achieve market acceptance; our failure to protect our intellectual property; intellectual property infringement claims against us; our reliance on and the risk relating to outsourced manufacturing fulfillment of our products, including potential increases in manufacturing costs; our reliance on sole sources for key components; our ability to manage our anticipated growth; our ability to manage our inventory levels; the negative impacts of product returns; design and performance issues with our products; product liability claims; our ability to hire and retain qualified personnel; our ability to secure additional financing to meet our future capital needs; increased competition and/or reduced demand in our industry; our failure to comply with domestic and international laws and regulations; economic conditions, political events, war, terrorism, public health issues, natural disasters and similar circumstances; volatility in our stock price; the risk that our common stock could be delisted from Nasdaq; concentration of stock ownership among our executive officers and principal stockholders; provisions in our certificate of incorporation, bylaws and Delaware law, as well as our stockholder rights plan, that could make a proposed acquisition of the Company more difficult; and dilution resulting from potential future stock issuances.
Additionally, other factors that could cause actual results to differ materially from those set forth in, contemplated by, or underlying these forward-looking statements are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 under the heading “Risk Factors.†In light of these risks and uncertainties, the forward-looking statements contained in this press release may not prove to be accurate. The Company undertakes no obligation to publicly update or revise any forward-looking statements, or any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Additionally, the Company does not undertake any responsibility to update you on the occurrence of unanticipated events which may cause actual results to differ from those expressed or implied by these forward-looking statements.