DALLAS, April 30, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- Alternet Systems, Inc. (USOTC: ALYI) (“ALYI”) today released a merger and acquisition update. The company has implemented an M&A strategy to expand its electric vehicle (EV) production capacity and advance its technology innovation. The update includes information on a pending letter of intent to acquire a strategic technology and a second acquisition in the pipeline intended to expand the company’s EV production capacity.
Alternet Systems M&A Update
The future magnitude of the electric vehicle (EV) market is certain. EV transportation will be the predominant mode of transportation in the future. Market Research Future (MRFR) forecasts that the EV market will reach a USD 356.5 billion valuation by 2023, increasing from a USD 106.5 Billion valuation calculated in 2016. The details of how the EV market grows from where it is today to becoming the predominant mode of transportation worldwide is less certain. ALYI is implementing a plan designed to accommodate and capitalize on the uncertainty.
The technology that powers future EV’s is likely not yet invented or discovered. Lithium batteries are the predominant energy storage solution today, but the scarcity of lithium and the volatility of lithium batteries make it an unlikely long-term solution. The lithium energy storage dominance is likely to pass and a large infrastructure investment in a lithium energy storage solution today could turn into a boat anchor tomorrow. In fact, battery technology in general is likely to be surpassed by the evolution of supercapacitors making battery investment today a high-risk prospect. Going even one step further, EV design so far has simply mirrored combustion engine vehicle design only replacing the combustion engine with an electric motor.
How does one build a mass EV production capability today using the technology available today and maintain the flexibility to deliver the EV product tomorrow using the technology yet to be discovered? The short answer is probably that a mass production capacity is premature and likely to not be sustainable.
A great deal of investment has gone into EV’s market wide and many such investments have failed to make it to revenue production and are now otherwise dormant. At ALYI, we see a tremendous opportunity to purchase such dormant investments at a discount of the original investment. In this manner, we can mitigate the risk of the technology becoming outdated before we can generate revenue. We have a current pipeline of dormant EV production assets that are in various stages of acquisition vetting and negotiation.
ALYI believes the core of any sustainable EV strategy will be driven by technology innovation. We are exploring technologies that will provide ALYI both short-term and long-term differentiation in the evolution of the EV market. We are certain that a merger and acquisition strategy will serve ALYI well in its objective of leading with technology innovation.
Near Term Acquisition Targets
ALYI management at this time has a pending letter of intent (LOI) agreement intended to lead to the acquisition of a strategic technology that would provide the company an expectational technological differentiation within the prevailing electric storage sector. The pending LOI is the result of a long-term initiative. The acquisition is anticipated to advance promptly following the LOI as a result of how long the acquisition has been under development. The execution of the LOI is considered imminent and could even be executed today. As a prudent cautionary note, management also emphasizes that until the LOI is executed, there remains a possibility the LOI and the acquisition will not come to fruition.
ALYI has previously announced targeting a shuttered electric car manufacturing facility for acquisition. Since that announcement, the company has actually added more than one shuttered electric car manufacturing to its pipeline. Such acquisitions come with real property, usually encumbered, which prolongs the acquisition process as revised lender terms are negotiated. In the meantime, ALYI has advanced an electric car company not encumbered with real property as the proprietary electric car technology had not yet advanced to commercial production. The target acquisition has developed prototypes of proven commercial viability. ALYI management is optimistic that mutually acceptable acquisition terms can be reached.
To learn more, visit http://www.alternetsystemsinc.com.
Research Report Speculative Buy Rating And $0.09 Target PPS
Goldman Small Cap Research recently issued a research report update on the Company. The report confirms a 'speculative-buy' rating with a target price-per-share of $0.09. The report provides an in-depth overview and analysis of Alternet's new strategy, new orders, and upcoming milestones. To view the report, along with disclosures and disclaimers, visit https://www.alternetsystemsinc.com/research-update or http://www.GoldmanResearch.com.
Disclaimer/Safe Harbor: 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.
For more information, please visit: http://www.alternetsystemsinc.com
Alternet Systems, Inc. Contact:
Randell Torno
info@lithiumip.com
+1-800-713-0297
