VANCOUVER, British Columbia, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Organic Flower Investments Group Inc. (CSE: SOW)(FWB: 2K6)(OTC: QILFF) (“Organic Flower” or the “Company” or "SOW") is pleased to announce that further to the Company’s news release on August 21, 2020 announcing its intention to augment its investment portfolio with a hydrogen sector investment, the Company has acquired a 90% equity interest in California-based PowerTap Hydrogen Fueling Corp. (“PowerTap”) as at October 27, 2020.
“PowerTap is very excited to have had this investment and recognition from SOW and plans to quickly build out a large North American hydrogen fueling station network from its strong position in IP and over two decades of continuous progress in creating hydrogen fueling solutions.
As an experienced developer of technology in an important area that is finally having its time as a green but also economically compelling energy options, PowerTap is intent on becoming a leading part of the multi-billion dollar hydrogen fueling space,” said Raghu Kilambi, CEO of PowerTap.
PowerTap’s corporate presentation may be accessed at the following link: https://sowinvestments.ca/wp-content/uploads/2020/10/PowerTap-Deck-Oct28.pdf
Organic Flower and PowerTap will work together to develop the hydrogen fueling station network in stages, consisting of engineering & design; ongoing development of PowerTap 3.0; and permitting and site preparation. The development of the hydrogen fueling station network is expected to commence with further updates to engineering and design in Q4 of 2021. Subject to the progress of this initial stage, the remaining stages of development and initial manufacturing are expected to start in Q1 2021 and progress with production of units in 2021. The anticipated aggregate cost of all stages of development of PowerTap's 3rd generation product is approximately $17m. At each stage of development, Organic Flower and PowerTap plan to secure financing of the project through available government financing & credits, and equity, debt & convertible debt offerings. The timing of the development to the next stages and the cost of each stage is subject to the success at each stage of development, the general development of the hydrogen fueling industry and the availability of funding.
This investment in PowerTap aligns with the Company’s investment policy, which was previously amended and restated to include the renewable energy sector as an area of focus for the Company. The amended and restated investment policy is available for review on the Company‘s website at (https://sowinvestments.ca/) and will be tabled for ratification at the Company’s next annual general meeting of shareholders. The Company intends to change its name to better align with its current investment policy and will announce the new name, ticker and effective date of the name change shortly.
Hydrogen Infrastructure Sector
The Company believes that finally hydrogen is going to have its time due to the clean tech revolution and economic advantages over incumbent fueling technologies, especially in commercial transportation. Industry reports forecast hydrogen to be a US$130 billion industry by 2030 in the USA with 700,000 jobs1.
Hydrogen powered vehicles have major advantages over battery electric, gas and diesel vehicles (driving range, fueling time and cost per mile)2. Billions of dollars’ worth of hydrogen long haul trucks and cars are expected on the market in next 2-4 years from incumbents and upstarts in the next 36 months3. Once produced, hydrogen powered vehicles generate electrical power in a fuel cell, emitting only water vapor and warm air.
Established vehicle manufacturers (Toyota, Hyundai, Daimler and Volvo) have announced that they are ramping up their delivery schedules of hydrogen powered cars and long-haul trucks and Nikola Motors has announced it will be manufacturing hydrogen electric long-haul vehicles4. The Company anticipates that the biggest need for the industry to receive general adoption are hydrogen fueling/refueling stations. There are currently only approximately 70 consumer hydrogen fueling stations in the U.S. versus approximately 150,000 gas stations and approximately ~25,000 battery electric vehicle (BEV) recharging stations5.
PowerTap is leading the charge to build out cost-effective hydrogen fueling infrastructure through its environmentally friendly intellectual property, product design for the modularized and lowest tier production cost of hydrogen, and launch plan.
Substantial investment continuously over a 20 year period from serious and sizeable public and private organizations and partnerships including energy multinationals, the U.S. government and further investments from a major auto manufacturer, has resulted in the PowerTap portfolio of IP and advanced deployed technologies as they exist in the present day.
For this reason amongst others, PowerTap believes that it has accrued and can deliver advantages over peers, battery electric vehicles (BEV), and gas and diesel fuel solutions, including quicker refueling, lower cost per mile and longer driving ranges - and of course, lowest tier overall emissions including initial inputs and processing.
PowerTap’s advantage over other hydrogen fueling station systems is that it has a small physical footprint where it can produce hydrogen fuel cost effectively on site at the individual station. Most existing USA hydrogen fueling stations buy hydrogen for storage at individual stations at much higher costs than PowerTap’s production cost. PowerTap technology-based hydrogen fueling stations are located in private enterprises and public stations (near LAX airport) in California, Texas, Massachusetts, and Maryland.
PowerTap is expected to qualify for attractive infrastructure loans plus the California Low Carbon Fuel Standard credit program allows PowerTap to earn attractive cash flow generating credits for building out the hydrogen production infrastructure at the individual station level. The California Low Carbon Fuel Standard credit program was a multibillion dollar market in 2019.
PowerTap’s plans include co-location of its hydrogen fueling infrastructure at existing gas station/truck stops. PowerTap’s goal is to deploy 500 to 1,000 stations within the next 3-5 yrs in the U.S. alone. There are currently under 100 active consumer hydrogen fueling stations operational in the U.S.
Additional information about PowerTap may be found at its webstie at https://www.powertapfuels.com
Acquisition of PowerTap
The acquisition of 90% of PowerTap (the “Acquisition”) is the cumulation of the transactions contemplated under the previously announced letter of intent dated August 12, 2020 between the Company and PowerTap (the “Letter of Intent”). The Letter of Intent granted the Company with the option to acquire up to a 90% interest of PowerTap (the “Option”). Upon exercise of the Option, PowerTap's shareholders (collectively, the “Vendors”) entered into a definitive agreement whereby the Company acquired 90% of PowerTap. The consideration paid to the Vendors consisted of an aggregate of 106,210,708 common shares in the capital of the Company (the “Consideration Shares”), under an 18-month escrow release program, at a deemed value of CA$0.30 per Consideration Share. The Vendors are arm’s-length to one another and none of whom, individually holds 10% or more of the issued and outstanding shares of the Company on a non-diluted basis. The Acquisition does not constitute a fundamental change or change of business for the Company, within the meaning of the policies of the Canadian Securities Exchange, but as the Acquisition constitutes a significant acquisition pursuant to National Instrument 51-102 – Continuous Disclosure Obligations, the Company will file a business acquisition report within 75 days from the date hereof.
The issuance of the Consideration Shares relied on the take-over bid exemption under Section 2.16 of National Instrument 45-106 – Prospectus Exemptions and therefore the Consideration Shares are not subject to a four month and one day hold period. However, the Vendors agreed to escrows of up to 18 months after the acquisition closes.
In connection with the Acquisition, the CA$4.4 million previously advanced by the Company to PowerTap pursuant to the Letter of Intent, was converted into an 8% demand promissory note, payable to the Company.
Engagement of First Marketing GMBH
Organic Flower has retained First Marketing GmbH, a leading investor relations and marketing firm based in Heidelberg, Germany, to provide marketing services focused on the European markets. Under the agreement, which commences on the date hereof, the service provider is to provide content distribution, translation and advertising services in Europe. The company agrees to pay the service provider up to 500,000 euros over the 6-month period to develop required content and artwork and to launch its market awareness programs in the European Union.
ABOUT ORGANIC FLOWER INVESTMENTS
Organic Flower is an investment company, that specializes in investing into private and public companies opportunistically that may be engaged in a variety of industries, with a current focus in the health and renewable energy industries. In particular, the investment mandate is focused on high return investment opportunities, the ability to achieve a reasonable rate of capital appreciation and to seek liquidity in our investments. A copy of Organic Flower’s amended and restated investment policy may be found under the Company’s profile at www.sedar.com.
ON BEHALF OF THE ORGANIC FLOWER INVESTMENTS GROUP INC. BOARD OF DIRECTORS
Joel Dumaresq CEO+1 (604) firstname.lastname@example.org
Learn more about Organic Flower by visiting our website at: https://sowinvestments.ca/
THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
Notice Regarding Forward Looking Information:
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward- looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Organic Flower. Some assumptions include, without limitation, the development of hydrogen powered vehicles by vehicle makers, the adoption of hydrogen powered vehicles by the market, and legislation and regulations favoring the use of hydrogen as an alternative energy source. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur or be achieved. This press release contains forward-looking statements pertaining to, among other things, the timing and ability of the Company to complete any potential investments or acquisitions, if at all, and the timing thereof. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking information contained in this press release.
Although the Company believes that the material factors, expectations and assumptions expressed in such forward- looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward- looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
____________________________1 https://www.fchea.org/us-hydrogen-study 2 https://www.businessinsider.com/nikola-motors-founder-investors-dont-care-company-has-no-revenue-2020-6 3 https://www.trucks.com/2019/11/12/hyundai-nikola-toyota-build-hydrogen-highway/4 https://www.usatoday.com/story/money/2020/10/26/hydrogen-trucks-nikola-gm-toyota-hyundai-zero-emissions/5981340002/5 https://www.statista.com/statistics/416750/number-of-electric-vehicle-charging-stations-outlets-united-states/
PICO Holdings, Inc. (NASDAQ:PICO) reported results for the second quarter ended June 30, 2020. Our reported shareholders’ equity was $172.3 million ($9.06 per share) at June 30, 2020, compared to $178.3 million ($9.01 per share) at December 31, 2019.
Second Quarter Results of Operations
Our second quarter results of operations were as follows (in thousands):
Three Months Ended June 30,
Total cost and expenses
Net income (loss) attributable to Pico Holdings, Inc.
Net income (loss) per share
Six Months Results of Operations
Our six months results of operations were as follows (in thousands):
Six Months Ended June 30,
Total cost and expenses
Net income attributable to PICO Holdings, Inc.
Net income per share
PICO’s Chief Executive Officer, Dorothy Timian-Palmer, commented:
"Our reported results of net income of $1.9 million for the second quarter ended June 30, 2020 reflects the sale of 470 acre-feet of groundwater rights in Dodge Flat, Nevada for sale proceeds of $3.1 million in May, 2020. We did not generate any other significant water resource asset sale transactions in the period or in the first quarter of 2020 and, as a result, our reported net income of $53,000 was virtually break-even for the six months ended June 30, 2020.
"Effective July 24, 2020, the Board adopted a new tax benefits preservation plan (the ‘Plan’) designed to preserve the Company’s ability to utilize its net operating losses (‘NOLs’). As of December 31, 2019, the Company had approximately $156.5 million (pre-tax) federal NOLs. Information with respect to these NOLs is contained in our Annual Report on Form 10-K for the year ended December 31, 2019 that we filed with the Securities and Exchange Commission. We believe these NOLs are a valuable asset to the Company and our shareholders, as they may potentially shelter all or part of any future taxable gains arising as we monetize our assets. The Company will seek shareholder ratification of the Plan at PICO’s 2021 Annual Meeting. The Plan is similar to the Company's previous tax benefits preservation plan, which expired on July 24, 2020.
"We continue to carefully monitor our liquidity and working capital requirements during these uncertain times. We believe our cash resources of $11.3 million as of June 30, 2020, provides us sufficient liquidity for our ongoing operations and share repurchase program. The Board continues to believe that at current and recent market prices, our stock is undervalued from our estimate of its intrinsic value, and we continued to repurchase our common stock through open market purchases throughout the second quarter of 2020 and year to date. In 2020, we have to date repurchased a total of approximately 838,000 shares for approximately $7.2 million. We will continue to monitor our liquidity and forecast cash generation very carefully; depending on the price of our shares, our cash position, and our cash flow outlook, we will continue to evaluate our capital allocation with respect to our share repurchase plan.”
About PICO Holdings, Inc.
As of June 30, 2020, our primary holding was Vidler Water Company, Inc. ("Vidler”), a water resource and water storage business, with assets and operations primarily in the Southwestern U.S.
Currently, we believe the highest potential return to shareholders is from a return of capital. As we monetize assets, rather than reinvest the proceeds, we intend to return capital to shareholders through a stock repurchase program or by other means such as special dividends. Nonetheless, we may, from time to time, reinvest a portion of proceeds from asset monetizations in further development of existing assets, if we believe the returns on such reinvestment outweigh the benefits of a return of capital.
At June 30, 2020, we had a market capitalization of $160.4 million, and 19,027,285 shares outstanding.
We remind all of our stockholders that questions regarding our operations may be submitted to email@example.com, and, if appropriate, we will post on our website responses to these questions.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains statements that may constitute forward-looking statements, which are based on information currently available, usually identified by words such as "anticipates," "believes," "estimates," "plans,'' "projects," "expects," "hopes," "intends," "strategy," ''focus," "outlook," "will," "could," "should," "may," "continue," or similar expressions, which speak only as of the date the statement was made. Such statements are forward-looking statements and are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including without limitation statements regarding our business objectives, our ability to monetize our water resources, the future demand for our water resources, our ability to reduce net operating cash use, our ability to preserve and utilize NOLs to offset taxable income and reduce our federal income liability, and our ability to monetize assets and return capital to shareholders through stock repurchases or through other means. The forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties.
A number of other factors may cause actual results to differ materially from our expectations, such as: any slow down or downturn in the housing or in the real estate markets in which Vidler operates; fluctuations in the prices of water and water rights; physical, governmental and legal restrictions on water and water rights; a downturn in some sectors of the stock market; general economic conditions; the impacts of the COVID-19 global pandemic on the demand for real estate, real estate development, and demand for water resources to support residential and commercial real estate development; prolonged weakness in the overall U.S. and global economies; the performance of the businesses in which Vidler operates; the continued service and availability of key management personnel; and potential capital requirements and financing alternatives.
For further information regarding risks and uncertainties associated with our business, please refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations” and "Risk Factors” sections of our SEC filings, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, copies of which may be obtained by contacting us at (775) 885-5000 x200 or at https://picoholdings.com.
We undertake no obligation to (and we expressly disclaim any obligation to) update our forward-looking statements, whether as a result of new information, subsequent events, or otherwise, in order to reflect any event or circumstance which may arise after the date of this press release, except as may otherwise be required by law. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200807005312/en/
STOCKHOLM, Oct. 26, 2020 /PRNewswire/ -- Elkem and FREYR have signed a Memorandum of Understanding (MoU) for the potential commercial supply of battery materials from Elkem to FREYR's lithium-ion battery cell facility under development in Mo i Rana, Norway.
Under the MoU, Elkem and FREYR will work together to establish long-term active anode material supply agreements, including battery graphite and high-content silicon battery materials, for FREYR's initial pilot production line, the 2-25 GWh fast-track facilities and the subsequent 2-phase 32 GWh giga-factory. The agreement also includes joint development and industrial scale testing of new high-performance active anode material and new technologies to provide battery cells with higher energy density, improved safety at significantly lower cost. The agreement is non-binding, and non-exclusive.
"The market for better and greener batteries is growing rapidly. Elkem aims to take a competitive position in this market, contribute to a strong European battery industry and build new Norwegian export industry based on renewable hydropower. We experience strong interest in the market from several battery cell producers across the European continent, as well as the emerging battery industry in Norway. We are pleased to sign an MoU with FREYR to explore the potential for a future commercial supply agreement from Elkem and scaling up Elkem's new silicon-graphite composite materials," says Stian Madshus, Vice President and General Manager Europe in Elkem Advanced Battery Materials.
Elkem recently received NOK 10 million in financial support from Enova to fund the initial planning of the potential large-scale battery materials plant in Norway, named Northern Recharge. The Northern Recharge project aims to supply the fast-growing battery industry through a competitive production process and make batteries greener with lower CO2 emissions. In August, Elkem selected Herøya, one of the biggest industrial parks in Norway, as the project site.
Elkem now continues to progress the Northern Recharge project towards a final investment decision in 2021. A positive investment decision requires competitive public support mechanisms and supportive government policies. Elkem is also inviting industrial and financial partners to participate.
"We are very pleased to include Elkem in our rapidly expanding eco-system of suppliers and customers. Long-term supply of high-performance, competitive active anode materials to our battery cell production facilities in Northern Norway is a core catalyst to competitive battery cell production. By combining secure, stable long-term supply of high performance active anode materials, state-of-the art manufacturing technology and 100% renewable energy, we are continuing to enable FREYR to deliver the most efficient, cost effective and environmentally friendly battery cells to all market segments", says Tom Einar Jensen, the CEO of FREYR.
Elkem continues to carry out research on silicon-graphite composite materials for improved battery performance. This year, the company is joining the Hydra and 3beLiEVe research projects on next generation lithium-ion batteries, coordinated by SINTEF and the Austrian Institute of Technology, respectively. Both projects have received funding from the European Union's Horizon 2020 research and innovation programme.
About ElkemFounded in 1904, Elkem is one of the world's leading suppliers of silicon-based advanced materials with operations throughout the value chain from quartz to specialty silicones, as well as attractive market positions in specialty ferrosilicon alloys and carbon materials. Elkem is a publicly listed company on the Oslo Stock Exchange (ticker code: ELK) and is headquartered in Oslo. The company has more than 6,700 employees with 31 production sites and an extensive network of sales offices worldwide. In 2019 Elkem had revenues of NOK 22.7 billion. To learn more, please visit www.elkem.com
About FREYRA Norwegian company in the process of developing, financing, constructing and operating an initial 2-25 GWh +32 GWh annual capacities worth of lithium-ion based battery cell facilities and a 600 MW wind park in the municipalities of Rana and Nesna in Nordland, Norway. The company will supply sustainably produced, cost competitive battery cells to the rapidly growing market for electric vehicles and energy storage in Europe and globally, as well as develop other markets within the segments of marine transportation, aviation and offshore oil through cluster-based R&D initiatives with leading Norwegian and European institutions and companies. For more information, see the home page at: freyrbattery.com
For more information:Odd-Geir Lyngstad, VP Finance & Investor Relations, ElkemTel: +47 976 72 806Email: firstname.lastname@example.org
Hans Iver Odenrud, Corporate Communication Manager, ElkemTel: +47 958 16 230Email: email@example.com
Tom Einar Jensen, Chief Executive Officer, FREYRTel: +47 911 66 378Email: firstname.lastname@example.org
Hilde Rønningsen, Director of Communications, FREYRTel: +47 453 97 184Email: email@example.com
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