ForceField Energy Completes Sale of Its Interest in TransPacific Energy
07 3월 2015 - 6:00AM
ForceField Energy Inc. ("ForceField" or the "Company")
(Nasdaq:FNRG), a seller and distributor of energy products and
solutions, announced today that it has completed the sale of its
50.3% interest in TransPacific Energy, Inc. ("TPE") to certain
current and former TPE shareholders for total consideration valued
at approximately $2.0 million, which includes $50,000 in cash and
the return by the TPE shareholders of approximately 255,000 shares
of ForceField's common stock issued in connection with ForceField's
acquisition of its 50.3% interest in TPE in June 2012. The total
value received by ForceField for its equity interest exceeds the
amount it paid to purchase the interest by approximately $500,000.
This transaction is part of the Company's ongoing strategic plan to
focus its resources on very significant near term opportunities in
the multi-billion dollar LED market.
Under the terms of the agreement, total consideration valued at
approximately $2.0 million includes approximately 255,000 shares of
ForceField common stock, valued at $7.49, as of the market close on
March 5, 2015. The shares, which have been returned to treasury,
will reduce ForceField's outstanding share count from approximately
18.7 million shares outstanding to approximately 18.45 million
shares outstanding. Additionally, ForceField is indemnified from
any past, present or future obligations or liabilities, which were
assumed in totality by the TPE shareholders that were party to the
agreement. As a result of the transaction and effective
immediately, ForceField has exited the "ORC waste heat segment" of
its business.
The divestiture of its ORC waste heat segment will enable
the Company to more efficiently deploy capital to support current
LED projects as well as to support current backlog and outstanding
proposals; including the recently announced significant LED
multi-million dollar street light conversion programs in
Connecticut and in other states. In addition, it will also support
the expected expansion of its LED services, product capabilities as
well as its regional presence.
David Natan, ForceField's CEO, commented, "We are very pleased
to have received nearly $2.0 million in value for our waste heat
assets which have been essentially dormant for the last one and one
half years. There is no doubt in our minds that this transaction,
which enables us to retire 255,000 shares outstanding and reduce
our share float, is in the best interest of our shareholders.
Focusing our resources on the LED market opportunity will
enable us to more rapidly deliver the highest potential revenue
growth, operating margins, and return on capital. We will continue
to work diligently to maximize our capital resources to support the
expected long term growth and profitably of our company."
About ForceField Energy Inc.
ForceField Energy Inc. and its subsidiaries comprise a global
company whose products and solutions focus on sustainable energy
solutions and improved energy efficiency. ForceField is a
distributor of LED and other lighting products for a number of
premier LED lighting manufacturers; and through its award-winning
subsidiaries, American Lighting and ESCO, have completed lighting
installations and retrofits as well as energy efficiency upgrades,
for numerous high profile concerns in a variety of industries.
www.forcefieldenergy.com
Forward-Looking Statements
Except for statements of historical fact, the matters discussed
in this press release are forward looking. "Forward-looking
statements" describe future expectations, plans, results, or
strategies and are generally preceded by words such as "future,"
"anticipates" or "anticipated," "believes," "estimated" or
"estimates," "plan" or "planned," "expects" or "projected." These
forward-looking statements reflect numerous assumptions and involve
a variety of risks and uncertainties, many of which are beyond
ForceField's control that may cause actual results to differ
materially from stated expectations. Some of the factors that could
cause actual results to differ materially from the forward-looking
statements contained herein include (i) failure to obtain adequate
financing to achieve the Company's LED revenue targets and to
support working capital needs; (ii) successful installation and
efficacy of the Company's LED lighting products; (iii) expansion of
the Company's product offerings and services to additional states
across the U.S., (iv) generating additional revenue and
profitability from the Company's expected national expansion
program, (v) competition within the LED industry both domestically
and internationally, (vi) efficacy of ESCO's streetlight product
offering, (vii) generating $25-30 million dollars from the
streetlight program over the next three to five years, (viii)
realizing the potential operating and financial benefits of exiting
the ORC waste heat segment and focusing on the LED market
opportunity, and (ix) other factors, without limitation, which are
set forth in documents we file from time to time with the
Securities and Exchange Commission, which are available at
www.sec.gov. For a written description of these factors, see the
section titled "Risk Factors" in the Company's Form 10-K for the
fiscal year ended December 31, 2013 and any updating information in
subsequent SEC filings. The Company disclaims any intention or
obligation to update these forward-looking statements whether as a
result of subsequent events or otherwise, except as required by
law.
CONTACT: ForceField Energy Inc.
Richard ST Julien
(212) 672-1786
www.forcefieldenergy.com
ForceField Energy (CE) (USOTC:FNRG)
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