Cleanfield Alternative Energy Inc. (AIR.V) has signed a Letter of Intent (LOI) for a merger with California-based WePOWER, LLC to focus on the development of vertical axis wind turbines (VAWTs) and other renewable energy systems.
Under the terms of the LOI, the companies have agreed to conduct the due diligence necessary to reach a definitive agreement and then seek regulatory and shareholder approval. The combined entity will also seek to raise the requisite amount of working capital to execute its business strategy.
"We are very excited about the potential for our combined companies," said Cleanfield CEO Tony Verrelli. "WePOWER has established itself as a market leader with a diversified product line and has established an outstanding dealer/distributor network and preferred vendor relationship with a major retailer. We believe that our engineering and development strengths coupled with WePOWER's sales and marketing expertise and extensive customer base is a win-win for our shareholders and a perfect strategic fit."
WePOWER Chairman and CEO Marvin Winkler stated, "This strategic merger provides WePOWER with numerous advantages, including: new products, new R&D capabilities, a strong management team and proven products that will enhance shareholder value. Cleanfield has invested heavily in R&D, Patents and Intellectual Property, which will expedite development of our next generation turbines and will be incorporated into WePOWER products going forward. Key competitive advantages include a 3-blade VAWT design, proprietary electronics, and a sophisticated rooftop mounting system." Mr. Winkler added, "The timing couldn't be better as WePOWER is enjoying unprecedented growth and expansion that necessitates additional resources, which this merger with Cleanfield is anticipated to provide."
WePOWER (www.wepower.us) has a comprehensive family of products in the small wind industry. WePOWER's patented WindvertiserTM line features a method to display moving images on wind turbines including eco-graphics. WePOWER's Falcon line includes: 600 W, 1.2kW, 3.4kW, 5.5kW and 12kW.
Cleanfield's V3.5 Vertical Axis Wind Turbine and its UL-certified inverter are designed to harness urban wind. Its VAWTs can be mounted on a tower or a suitable rooftop, and offer customers electricity independence and security.