ANCASTER, ONTARIO--(Marketwire - Feb. 13, 2008) - Cleanfield Alternative Energy Inc. ("Cleanfield") (TSX VENTURE:AIR) is pleased to announce that its fully-owned subsidiary, Cleanfield Energy Corp., has entered into a non-exclusive distribution agreement with Two-West Energy Group ("Two-West") of Ontario as of February 13, 2008 ("the Agreement").
Two-West will market, sell and install Cleanfield's V3.5 wind turbine to specified client accounts within Canada and the United States. The aforementioned client accounts include high-profile customers within the following industries: automotive, food services, retail, real estate, and grocery.
Pursuant to the terms of this three-year Agreement, if full distribution of the Agreement is achieved, with sales projected at 3,000 units, a further three year renewal will be granted to Two-West. Installations of Cleanfield's V3.5 by Two-West are anticipated to commence within four months. This Agreement replaces the previous Letter of Intent between Cleanfield and Two-West (formerly "ESG") for 500 units dated November 6, 2007.
Two-West is eligible to receive incentive aggregate common shares based on sales. Within the first 18 months of the Agreement, should Two-West sell between 500 and 649 Cleanfield V3.5 turbines, they are eligible for the transfer of an aggregate 300,000 common shares from Cleanfield's co-founders; this will increase by 100,000 if 650 to 799 sales occur. The aggregate common shares are subject to resale restrictions with 50% being tradable 6 months following, a further 25% becoming freely tradable 12 months following, and an additional 25% becoming freely tradable 18 months from the date of transfer. Furthermore, should sales exceed 800 units within 18 months, Cleanfield shall issue to Two-West an additional 100,000 common shares from treasury, subject to the same resale restrictions as the aforementioned incentive, and for every additional 160 turbines sold by Two-West over and above 800, Cleanfield shall issue an additional 50,000 shares; such shares will become freely tradable on a date that is 12 months from the date of issuance. Cleanfield will have no obligation to issue any additional shares above 1,000,000 in the capital of the Company either from treasury or from the co-founders.
This Agreement has the potential to engender a significant increase to the small wind turbine industry. According to the American Wind Energy Association's 2007 Small Wind Turbine Global Wind Market Study, 741 on-grid (connected to the utility grid) small wind turbines were sold in the United States(1) in 2006. The primary target market for Cleanfield's V3.5 wind turbine is on-grid. Following the implementation of this Agreement, the number of installed on-grid small wind turbines could increase by 135% over those installed in 2006(2). This could allow Cleanfield to potentially become one of the market leaders in this fast growing sector. As noted by the American Wind Energy Association's Study, since 1990, the small wind turbine market has enjoyed an annual growth of 14-25%.
Cleanfield's President and Chief Executive Officer, Mr. Tony Verrelli, observes that, "This agreement is an important step for Cleanfield as the product will become more visible to the corporate sphere.
Concern for the environment is increasingly important, and corporate customers will benefit with installations of the Cleanfield V3.5 as it serves to become their icon of commitment to reducing Greenhouse Gases and generating green electricity for the future. Cleanfield's agreement with Two-West is a great complement to our existing growing network of professional dealers and distributors across North America."
Mr. Jerry Foster, Director of Sales and Marketing of Two-West, states that, "Our group is excited for the opportunity to bring the Cleanfield V3.5 to market. Corporations can surely benefit from the efficient wind turbine offered by Cleanfield Energy, and we look forward to introducing our diverse network of business associates to the product."
About Two-West Energy Group
Two-West Energy Group is headed by an award-winning business development team with a keen ability to marry customer requirements with corporate goals. They are experienced team players in the areas of visual communications, business development, strategic sales implementation and corporate finance. The group has a global network of market and business contacts in technology, automotive, food services, retail, real estate, and grocery industries, and includes a client roster of major Fortune 500 companies and major key contacts throughout the automotive sector.
About Cleanfield Alternative Energy
Cleanfield Alternative Energy is the parent company of Cleanfield Energy Corp. and is committed to the development of renewable energy products for both consumer and commercial applications. Cleanfield's tailor-made VAWT can be mounted on a tower or suitable rooftop, offering electricity independence and security.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Cleanfield is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release.
Cleanfield cannot assure investors that actual results will be consistent with these forward looking statements and Cleanfield assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
(2) 2007 figures were not available at the time of this Press Release.The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this new release.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here