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Key Capital signs agreement with Power Technology
Key Capital Group Inc. of Vancouver, Canada, has signed an agreement in principle with Power Technology Inc. of Las Vegas, Nevada, to develop an "energy package" targeted toward the emerging electric bike market. Through the agreement, Power Technology's advanced lead acid battery technology will be integrated with Key Capital's Accelrate(TM) charger technology.
Key Capital will receive an exclusive license to develop, commercialize, and market the battery technology for the "energy package" and for the traction market. In consideration for the license, Power Technology will receive 5.8 million common shares of Key Capital and $500,000.
Other stipulated conditions include the naming of Wolf Meyerfeld, a director of Power Technology, to a seat on Key Capital's board, and granting Power Technology an exclusive license to market the energy package in China. This agreement will have a minimum term of 20 years with an automatic renewal right.
Meyerfeld, a retired engineer, has a background in high technology with Pratt & Whitney and the aerospace industry. He has been president and CEO of two public companies and brings direct experience in the battery industry.
In related news, Power Technology has entered into license negotiations with a Swedish consortium headed by Lennart Olofsson, founder and former CEO of Duroc, and former Volvo executives Gunner Sundqvist and Sven Lantzfor for its advanced battery technology, New Europe reports.
A preliminary agreement has been reached to establish a facility for the production of Power Technology's advanced battery, which is on a test bed at the Catella Test Lab in Stockholm, Sweden. Following verification of the lead-acid battery's technical specifications, the consortium is prepared to begin commercial production for the European market.
The consortium will invest a minimum of $5 million to build a fully automated production line in a 20,000-squarefoot plant in the UMEA area of northern Sweden.
"Once the new plant is in full operation, we will work with the consortium on pricing and branding," said Director Meyerfeld. "We will then finalize the terms of our license and royalty agreement."
Lee Balak, president and CEO of Power Technology stated, "We believe our consortium partners have the track record and experience to successfully manufacture and sell our advanced lead batteries in the European market to the automotive, e-vehicle, heavy equipment, and telecommunications sectors."
Copyright Seven Mountains Scientific, Inc. Aug 2002
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