ZUG, Switzerland and SEOUL, Korea, December 10 /PRNewswire-FirstCall/ -- iQ Power AG (Nasdaq OTC-BB: IQPWF.OB, German WKN: A0DKTR) has announced the establishment of a joint company with a Korean consortium. A related agreement is in effect now that the financing has been secured.
In accordance with this agreement, the new joint company, called iQ Power Asia Inc., will be founded this year. The purpose of the company is the production and marketing of innovative electrical energy management systems for the rapidly expanding Asian automobile industry. The foundation for this undertaking is the technology that iQ Power developed for the "MagiQ", the world's first microelectronically controlled car battery.
The agreement stipulates that the participating partners provide the new company with $2.2 million in starting capital. iQ Power AG will hold a 40-percent shareholding in iQ Power Asia Inc., which cannot be diluted. Furthermore, iQ Power AG will be afforded an advance dividend of $2 million from iQ Power Asia's net income.
iQ Power's contract partner is a consortium of Korean representatives from the military-industrial sector under the leadership of Tae Soo Lee..
This Korean partner will make a one-time payment of $1.1 million to iQ Power AG before the end of the year.
"We're convinced that we have found just the right partner to successfully expand into the Asian market," commented Peter E. Braun, board president of iQ Power AG. "This new iQ Power Asia organization will serve as a bridgehead for implementing our Asia strategy."
It took a great deal of time and many visits back and forth by both parties to work out the terms of the current agreement. Negotiations were supported by the Korea Trade Investment Promotion Agency (KOTRA) and the AiF industrial-research workgroup of the German Ministry of Economics and Labor.
Tae Soo Lee: "We are extremely interested in bringing innovative German high technology to Korea and making it a success on the Asian market"
About iQ Power AG
iQ Power AG is a Swiss company that specializes in the development of intelligent systems solutions for electrical energy management (Smart Energy Management, SEM) in the power and wiring systems of automobiles and other forms of transportation. Among the company's numerous achievements was the world's first software-managed, intelligent car battery. The development unit is iQ Power Deutschland GmbH, a wholly owned subsidiary of iQ Power AG located in Munich, Germany.
iQ Power AG Peter E. Braun, President of the Board of Directors Further Peter E. Braun Information: (Corporate Management) TEL +49-(89)-61-44-83-10 FAX +49-(89)-61-44-83-40 e-mail: peter.braun@iqpower.com
The following is a "safe harbor" statement under the private Securities Litigation Reform Act of 1995: Information published by iQ Power contains forward-looking statements regarding anticipated developments and agreements. These forward-looking statements address future events and conditions and involve inherent risks and uncertainties that may cause actual results to differ materially from anticipated results. Such risks and uncertainties include, but are not limited to, risks associated with iQ Power's ability to achieve the objectives of its business strategy, iQ's ability to raise additional financing on acceptable terms to fund its strategic plan, the accuracy and sufficiency of iQ's anticipated operating budget to implement its strategic plan, risks related to the production and commercialization of the MagiQ battery, potential fluctuations in operating and research and development expenses, project and product development contingencies, iQ's ability to generate revenue from the sale of its battery and energy management products and through licensing its technologies. The reader is cautioned not to place undue reliance on forward-looking statements.
iQ Power AG
In accordance with this agreement, the new joint company, called iQ Power Asia Inc., will be founded this year. The purpose of the company is the production and marketing of innovative electrical energy management systems for the rapidly expanding Asian automobile industry. The foundation for this undertaking is the technology that iQ Power developed for the "MagiQ", the world's first microelectronically controlled car battery.
The agreement stipulates that the participating partners provide the new company with $2.2 million in starting capital. iQ Power AG will hold a 40-percent shareholding in iQ Power Asia Inc., which cannot be diluted. Furthermore, iQ Power AG will be afforded an advance dividend of $2 million from iQ Power Asia's net income.
iQ Power's contract partner is a consortium of Korean representatives from the military-industrial sector under the leadership of Tae Soo Lee..
This Korean partner will make a one-time payment of $1.1 million to iQ Power AG before the end of the year.
"We're convinced that we have found just the right partner to successfully expand into the Asian market," commented Peter E. Braun, board president of iQ Power AG. "This new iQ Power Asia organization will serve as a bridgehead for implementing our Asia strategy."
It took a great deal of time and many visits back and forth by both parties to work out the terms of the current agreement. Negotiations were supported by the Korea Trade Investment Promotion Agency (KOTRA) and the AiF industrial-research workgroup of the German Ministry of Economics and Labor.
Tae Soo Lee: "We are extremely interested in bringing innovative German high technology to Korea and making it a success on the Asian market"
About iQ Power AG
iQ Power AG is a Swiss company that specializes in the development of intelligent systems solutions for electrical energy management (Smart Energy Management, SEM) in the power and wiring systems of automobiles and other forms of transportation. Among the company's numerous achievements was the world's first software-managed, intelligent car battery. The development unit is iQ Power Deutschland GmbH, a wholly owned subsidiary of iQ Power AG located in Munich, Germany.
iQ Power AG Peter E. Braun, President of the Board of Directors Further Peter E. Braun Information: (Corporate Management) TEL +49-(89)-61-44-83-10 FAX +49-(89)-61-44-83-40 e-mail: peter.braun@iqpower.com
The following is a "safe harbor" statement under the private Securities Litigation Reform Act of 1995: Information published by iQ Power contains forward-looking statements regarding anticipated developments and agreements. These forward-looking statements address future events and conditions and involve inherent risks and uncertainties that may cause actual results to differ materially from anticipated results. Such risks and uncertainties include, but are not limited to, risks associated with iQ Power's ability to achieve the objectives of its business strategy, iQ's ability to raise additional financing on acceptable terms to fund its strategic plan, the accuracy and sufficiency of iQ's anticipated operating budget to implement its strategic plan, risks related to the production and commercialization of the MagiQ battery, potential fluctuations in operating and research and development expenses, project and product development contingencies, iQ's ability to generate revenue from the sale of its battery and energy management products and through licensing its technologies. The reader is cautioned not to place undue reliance on forward-looking statements.
iQ Power AG
