On April 23, 2019, the Registrant and Inductance Energy Corporation mutually agreed to cancel/rescind the Conditional Binding Letter of Intent (“LOI”) between them dated April 10, 2018. The parties agreed that the mutual cancellation/rescission is based on the inability of the parties to reach an agreement that serves their respective best interests and priorities and that the cancellation/rescission of the LOI will enable each party to pursue its unique opportunities and interests with certainty and focus.
On April 2, 2019, the Registrant and its subsidiary FTPM Resources, Inc. entered into a Non-Binding Memorandum of Understanding (“MOU”) with Easy Energy Systems, Inc. (“EESI Systems”). Pursuant to the MOU, if certain conditions are met, including the availability of financing: (i) EESI Systems and FTPM will enter into a joint venture, which would be owned 33% by FTPM and 67% by EESI Systems, for the purpose of developing and marketing of “clear glucose”; FTPM will have a 90-day option beginning April 30, 2019, to merge with EESI Systems, whereby EESI Systems will be the surviving entity; EESI Systems will have the right to acquire shares of preferred stock of the Registrant, with such rights and preferences as the parties shall agree; and EESI Systems will have the right to appoint members to the board of directors of the Registrant. EESI Systems designs, manufacturers, operates and sells its patented 1M, 2M, and 5M gallon per year, small-scale, modular biorefineries called Modular Energy Production Systems (MEPS®) for the production of alternative liquid biofuels from organic waste streams. MEPS® biofuels can be mixed with, or can selectively replace, gasoline derived from fossil fuels. EESI Systems’ systems are centrally manufactured and can be shipped anywhere in the world, as a result EESI Systems is able to bring new energy sources to locations that would otherwise not have access to it. EESI Systems has aligned with EESI Infrastructure to compliment this opportunity and to assist in providing financial assurances and guarantees.
On April 16, 2019 the Registrant entered into a Non-Binding Memorandum of Understanding to acquire EESI Infrastructure Series, LLC (“EESI Infrastructure”). The prospective EESI Infrastructure acquisition, if consummated as provided in this MOU, would provide an Engineering, Procurement and Construction (“EPC”) guarantee for the construction of an addition to the existing $11.2 million plant of EESI Systems in Emmetsburg, Iowa. This addition will add a 9.3 Mega Watt dual gas power plant to EESI Systems’ Emmetsburg facility at an anticipated cost of approximately $10 million dollars. The EPC Agreement would provide a Warranty Bond Guarantee to ensure the plant will remain operational for 18 months after completion of the Emmetsburg facility Power Plant.
