VANCOUVER, British Columbia, Nov. 26, 2020 (GLOBE NEWSWIRE) -- Clean Power Capital Corp. (CSE: MOVE)(FWB: 2K6)(OTC: MOTNF) (“Clean Power” or the “Company” or "MOVE"). The Company issues this news release to comment on the stock halt on the Frankfurt Exchange and IIROC-imposed trading halt, both on November 24, 2020. The Company wishes to clarify certain statements made in a paid promotional newsletter (“news letter”) in Germany about the Company’s investment in PowerTap Hydrogen Fueling Corp. (“PowerTap”). This newsletter was published pursuant to the consulting agreement, initially disclosed on October 28, 2020, between the Company and First Marketing GmbH (“FMG”), an investor relations and marketing firm based in Heidelberg, Germany, to provide marketing services focused on the European markets. FMG is arm’s-length to the Company, however the principals of FMG have purchased shares of the Company in the last two private placements representing approximately 7% of the issued and outstanding shares of MOVE. Under the agreement, the Company agreed to pay to FMG up to 500,000 euros over a 6-month period to develop required content and artwork and to launch its market awareness programs in the European Union. The Company is in the process of reviewing the terms of the agreement with FMG going forward.
It is the Company’s policy to review and vet all distributed information about the Company and its investments. The Company understands that a recent article about the Company’s investment in PowerTap and PowerTap’s technology may not have contained sufficient explanatory notes for a reader to understand the entire context of the article and could have been interpreted as overly promotional. In this regard, the Company wishes to qualify certain statements made in the article.
The article stated that the PowerTap technology has the ability to produce the greenest and cheapest hydrogen. The PowerTap technology consists of onsite steam methane reforming (SMR) hydrogen production and dispensing modular units, which has the potential to be to be an environmentally cleaner hydrogen fueling technology compared to other technologies that require a significant amount of electricity to produce hydrogen like electrolysis, and also has the potential to be more cost effective compared to offsite produced hydrogen.
The article also noted that an installed PowerTap hydrogen station cost approximately US $4 million per station. Approximately US $2 million/station in one-time revenues can be generated from trading in emissions certificates even without generating revenues from the sale of hydrogen. The Company wishes to clarify that the US $2 million per station is actually a per year estimated carbon credits, noted in the article, is derived from the State of California’s Low Carbon Fuel Standard infrastructure credit program (https://ww2.arb.ca.gov/resources/documents/lcfs-zev-infrastructure-crediting).
The article further noted that an initial 1,000 station expansion projected by PowerTap would mean a one time payment of US $2 billion. This estimate is on the basis that each of the anticipated stations have the capacity to produce 2,000 kg per station per day, generating a carbon credit payment (California Hydrogen Infrastructure Credits) of potentially US $2 million per station.
However, the Company notes that PowerTap does not anticipate an initial 1,000 station expansion in the State of California. PowerTap anticipates that the installation of its station network in California will actually consist of up to 500 stations, to be located at existing gas stations and truck stops, as previously mentioned in the Company’s news releases dated November 2, 2020 and November 23, 2020.
Therefore the estimate provided in the article based on 1,000 stations having the potential to generate US $2 billion in a one time payment is not accurate. Should PowerTap achieve an initial launch of 500 stations in the State of California, the station network has the potential to generate up to US $1 billion in annualized carbon credit revenues.
It should be noted that the initial planned 500 station expansion is subject to obtaining zoning approval for fueling station activity from the applicable municipal authority, but it is expected that by co-locating the modular stations at existing gas stations and truck stops, the existing operators will have current zoning permits, on which PowerTap will be able to rely. Co-location agreements with existing gas stations and truck operators will be negotiated closer to the expansion rollout. The California Hydrogen Infrastructure Credits available for each station will only be earned once a station is installed and is available for use by the customer, however it is then an annual vs a one -time payment.
The initial development of this now 3rd Generation PowerTap hydrogen fueling station network building on and improving existing and deployed 1st and 2nd Generation PowerTap outlets is expected to commence with further updates to engineering and design in Q4 of 2020.
Subject to the progress of this initial stage, the remaining stages of development and initial manufacturing are expected to start in Q1 2021 and progress with production of units by H2 2021. As previously announced in the Company’s October 28, 2020 news release, the anticipated aggregate cost of all stages of development of PowerTap's 3rd generation product is approximately US $17 million. At each stage of development, PowerTap plans to secure financing of the project through available government financing & credits, and equity, debt & convertible debt offerings. The timing of the development to the next stages and the cost of each stage is subject to the success at each stage of development, the general development of the hydrogen fueling industry and the availability of funding.
The Company confirms that it is responsible for the content of all the newsletters published by the Company’s paid investor relations and marketing firms and will implement enhanced review procedures going forward, which shall consist of the review of all newsletters by the management of the Company for accuracy of content and an additional review by the Company’s legal counsel for compliance with applicable securities disclosure requirements. Any newsletters sponsored by the Company shall not be distributed without the prior approval of the Company’s management and legal counsel.
ABOUT CLEAN POWER CAPITAL CORP.
Clean Power is an investment company, that specializes in investing into private and public companies opportunistically that may be engaged in a variety of industries, with a current focus in the health and renewable energy industries. In particular, the investment mandate is focused on high return investment opportunities, the ability to achieve a reasonable rate of capital appreciation and to seek liquidity in our investments. A copy of Clean Power’s amended and restated investment policy may be found under the Company’s profile at www.sedar.com.
ON BEHALF OF THE CLEAN POWER CAPITAL CORP. BOARD OF DIRECTORS
+1 (604) 687-2038
Learn more about Clean Power by visiting our website at: https://cleanpower.capital/
THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
Notice Regarding Forward Looking Information:
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Clean Power. Some assumptions include, without limitation, the development of hydrogen powered vehicles by vehicle makers, the adoption of hydrogen powered vehicles by the market, legislation and regulations favoring the use of hydrogen as an alternative energy source, the Company’s ability to build out its planned hydrogen fueling station network, and the Company’s ability to raise sufficient funds to fund its business plan. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur or be achieved. This press release contains forward-looking statements pertaining to, among other things, the timing and ability of the Company to complete any potential investments or acquisitions, if at all, and the timing thereof. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking information contained in this press release.
Although the Company believes that the material factors, expectations and assumptions expressed in such forward- looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward- looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.