Cleanfield Enters Into Off-Grid Wind Turbine Manufacturing License for Asia
and Equity Investment in Cleanfield
TORONTO, Oct. 21 /CNW/ - Cleanfield Alternative Energy Inc. ("Cleanfield") (TSX VENTURE: AIR) a leader in innovative sustainable energy technologies and building-integrated solutions, announces today that it has signed a license agreement (the "Agreement") with Sai Prasad Energy Pvt. Ltd. ("SAI"), a subsidiary of the SAI Prasad Group of Companies. SAI is an arm's length party based in Pune, India with businesses spanning a multitude of industries including manufacturing and real estate development. Pursuant to the terms of the Agreement, SAI will be granted exclusive manufacturing rights for off-grid systems for the continent of Asia. Furthermore, SAI has agreed to purchase $2 million of Cleanfield common shares in four installments subject to the approval and in accordance with the policies and regulations of the TSX Venture Exchange.
As per the signed agreement, dated October 18, 2010, the first equity investment installment of $1 million will be made within 15-days following the signing of the Agreement. The remaining $1 million will be separated into three milestone payments with the final payment due within three months of Cleanfield delivering the final product. SAI will also pay Cleanfield a quarterly royalty fee on all sales and nominate a representative to become a director of Cleanfield.
Cleanfield's Chief Executive Officer Tony Verrelli stated, "We are excited to be establishing this partnership with SAI and introducing our technologies into the vast Asian market, which represents a strategically important milestone for the global growth of Cleanfield. Partnering with SAI will mean the acceleration of Cleanfield's solutions into a very important market. SAI has diverse operations and many widespread business contacts across India, a rapidly growing economy with over one billion people, and significant awareness of, and demand for, clean, renewable, distributed energy. In the next several months, we will be working together to establish the manufacturing in India of a prototype of Cleanfield's off grid V3.5 system that will meet the quality standards we have achieved here in Canada."
Mr. Sureshlal Kamalalal Shrivastav, Chief Executive Officer of SAI Prasad Group, said, "Cleanfield's inverter technologies and vertical axis turbine are well-established technologies with excellent sales potential in Asia. We are confident in SAI's abilities to begin manufacturing, marketing and selling Cleanfield's turbine in the first half of 2011."
About SAI: Founded in 2001, the private company is a rapidly expanding organization involved in food & beverage and agricultural products, real estate development, infrastructure and construction, green energy and media entertainment. The Group operates in 75 cities, with 86 branches staffed by 600 employees. Its operating divisions include SAI Prasad Foods Ltd., SAI Prasad Properties Ltd., SAI Prasad Financial Services Ltd., SAI Prasad Media Private Ltd., SAI Prasad Infra & Constro Pvt Ltd., and SAI Prasad Energy Pvt Ltd.
About Cleanfield: Cleanfield is an innovative technology company focused on the research, development and distribution of renewable energy solutions for the urban environment. Cleanfield possesses industry leading, proprietary inverter technologies, which it currently sells through a complete solution - a 3.5 kW vertical axis wind turbine. Cleanfield turbines have been installed in over 50 locations worldwide. The company's vision is to be recognized as an international leader in bringing high-quality and innovative sustainable energy solutions to the marketplace.
Forward Looking Statements: Certain statements in this news release may be considered to be forward-looking. These statements relate to future events or Cleanfield's future results including revenues and reflect the current assumptions and expectations of management. Unknown factors may affect the events, performance, revenues and results of operations described herein. Cleanfield undertakes no obligation, and does not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable laws.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information: Go to www.cleanfieldenergy.com, or contact Tony Verrelli, CEO, Cleanfield (905) 304-5223, [email protected]
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