(ADPnews) - Feb 7, 2011 - US green power technologies developer PowerVerde Inc (OTC:PWVI) said on Monday that Dutch firm Newton Investments BV will distribute its 50-kW renewable energy system throughout the European Union (EU) under a licensing deal.
The two parties have signed a letter of intent under which Newton will initially market the product in the Netherlands, Belgium, Germany and the Scandinavian region. In addition, PowerVerde has authorised Newton to produce the green power system. The Dutch company must sell at least 100 units for the first year before receiving exclusive rights for up to 10 years. Newton's president Piet van der Hoop said the company intends to install up to 300 MW of PowerVerde's solutions in the coming three years.
"Because of Europe's appreciation for green electricity products we felt that a product launch in this region combined with North America later this year was a positive marketing strategy for 2011," said Rick Davis, PowerVerde director.
PowerVerde also announced that in relation to the deal, a Newton affiliate purchased 333,333 of its common shares at a price of USD 0.75 (EUR 0.57) apiece, resulting in an investment of USD 250,000. The affiliate has also received three-year stock purchase warrants to buy another 333,333 shares for the same price per share.
(USD 1.0 = EUR 0.740)
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