MCEL .065 X .067 NEWS.
Millennium Cell and Horizon Fuel Cell Sign Letter of Intent
Friday October 19, 9:00 am ET
- Millennium Cell and Horizon Fuel Cell Target 2008 to Sell Products -
- Companies to Exchange Stock as Part of Agreement -
EATONTOWN, N.J. and SINGAPORE--(BUSINESS WIRE)--Millennium Cell Inc. (NASDAQ:MCEL) and Horizon Fuel Cell Technologies Pte. Ltd announced today that the two companies have signed a Letter of Intent (“LOI”) to jointly develop and sell products on a global basis. The companies have also entered into a definitive agreement which will result in the exchange of their respective equity valued at $5 million. Under the LOI, each company will receive preferred product pricing, as well as the ability to resell certain products developed by the two companies on a global basis. It is expected that a Definitive Agreement for the business arrangement will be executed within the next 30 days.
Source: Millennium Cell Inc.
To consummate the equity transaction, earlier today Millennium Cell issued to Horizon approximately 12% of Millennium Cell’s outstanding shares in exchange for a non-interest bearing convertible note in the principal amount of $5 million. The one-month note from Horizon will automatically convert into approximately 7% of Horizon’s outstanding common stock upon a vote by Horizon’s shareholders. Both parties have agreed to a one year lock-up period for the common stock. A current report on Form 8-K to be filed by Millennium Cell with the Securities and Exchange Commission later today sets forth the material terms of the transaction with Horizon.
In August 2007, Horizon licensed Millennium Cell’s Hydrogen on Demand® technology for the purpose of co-developing compatible hydrogen storage cartridges for the next wave of Horizon fuel cell products. The intent of this agreement is to strengthen the relationship between the two parties and enhance their ability to jointly develop and sell products on an accelerated basis. Several products have already been identified for development and it is expected that the initial products in this collaboration will be manufactured by Horizon.
Horizon recently demonstrated an emergency power unit for the first time at the CEATEC Japan exhibition. The prototype system provided approximately 10 hours of runtime at 50 watts utilizing Horizon’s fuel cells powered by Millennium Cell’s Hydrogen on Demand® chemical hydride fuel technology. Horizon and Millennium Cell plan to launch the emergency power unit under in 2008 as a clean, quiet, high energy alternative to lead acid battery based portable power packs. The two companies anticipate developing additional power source products for consumer and military use to be launched in 2008 and 2009. More information on these products will be provided as the development effort progresses.
“We are very pleased with our investment in Millennium Cell as we share the same market vision and can clearly see how well our products mate with their technology,” said George Gu, President and CEO, of Horizon Fuel Cell Technologies. “Our development efforts are already underway and we will use our mutual strengths to expand our offerings and bring exciting new products to commercial and military markets.”
“This agreement with Horizon adds a new dimension to our business model,” commented Adam P. Briggs, Millennium Cell President. “The objective is to generate product revenues for both Millennium Cell and Horizon in 2008 by leveraging our collective technologies, production capabilities and experience. We believe that Horizon’s low-cost, high performance fuel cells and production knowledge combined with our hydrogen storage cartridges will result in superior power products with sustainable competitive advantages over batteries and other fuel cell technologies.”
About Millennium Cell
Millennium Cell is a leader in the development of hydrogen battery technology used to power portable applications. Through its proprietary Hydrogen on Demand® fuel cartridges and PowerSkin™ fuel cell modules, the Company provides increased energy density resulting in longer runtime and lighter weight in a compact space. The Company is working with market partners to meet the demand for a better battery in the military, medical, industrial and consumer electronics markets. For more information, visit www.millenniumcell.com.
About Horizon Fuel Cell Technologies Pte Ltd
Thinking big, yet starting small, Horizon pioneered the sales of next-generation fuel cell power products in small consumer products, while developing larger-scale clean power solutions for larger-size applications such as portable power, transportation and aerospace. With comprehensive technological developments focused on enabling fuel cell commercialization, Horizon is the first company to bring advanced fuel cell technology out of the laboratories and into the mass market today. For more information, visit http://www.horizonfuelcell.com.
Cautionary Note Regarding Forward-looking Statements:
This press release may include statements that are not historical facts and are considered ``forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Millennium Cell’s current views about future events and financial performance and are subject to risks. Forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “plan,” “anticipate,” “on target” and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from Millennium Cell’s expectations, and Millennium Cell expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to, the following: (i) the cost and timing of development and market acceptance of Millennium Cell’s hydrogen fuel storage and delivery system; (ii) the cost and commercial availability of the quantities of raw materials required by the hydrogen fuel storage and delivery systems; (iii) competition from current, improving and alternative power technologies; (iv) Millennium Cell’s ability to raise capital at the times, in the amounts and at the costs and terms that are acceptable to fund the development and commercialization of its hydrogen fuel storage and delivery system and its business plan; (v) Millennium Cell’s ability to protect its intellectual property; (vi) Millennium Cell’s ability to achieve budgeted revenue and expense amounts; (vii) Millennium Cell’s ability to generate revenues from the sale or license of, or provision of services related to, its technology; (viii) Millennium Cell’s ability to form strategic alliances or partnerships to help promote our technology and achieve market acceptance; (ix) Millennium Cell’s ability to generate design, engineering or management services revenue opportunities in the hydrogen generation or fuel cell markets; (x) Millennium Cell’s ability to secure government funding of its research and development and technology demonstration projects; and (xi) other factors discussed under the caption “Investment Considerations” in Millennium Cell’s Annual Report on Form 10-K for the year ended December 31, 2006.
MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5522657
Contact:
Investors:
MBS Value Partners, LLC
Betsy Brod, 212-750-5800
Source: Millennium Cell Inc.
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