Clean technology developer AmmPower, Toronto, on Dec. 30 announced that it has entered into a binding letter agreement to acquire 50.05% of the issued and outstanding common shares of Progressus Clean Technologies Inc. (formerly AES-100 Inc.), Toronto, a venture-stage green technology company focused on the development of novel hydrogen generation and separation technologies.
AmmPower said Progressus’ intellectual property has the potential to directly improve the efficiency of ammonia production through the extraction of hydrogen from dilute syngas. AmmPower expects to be able to use the Progressus hydrogen extraction technology in a variety of ammonia use cases, including shipping, cracking, and for use in its IAMM™ (Independent Ammonia Making Machine) fertilizer units.
”The Progressus intellectual property allows us to expand our technology based clean energy agenda,” said Dr. Gary Benninger, AmmPower CEO and Executive Chairman. “We have multiple use applications where the Progressus technology will enable us to be more vertically integrated while reducing system costs.”
AmmPower will acquire the 50.05% from certain shareholders (vendors) of Progressus. In consideration, AmmPower will issue an aggregate of 50,000,000 common shares of the company to the vendors at a deemed price of C$0.30 per company share.
In connection with the transaction, the vendors have also agreed to provide to the company an aggregate loan of $500,000, payable as follows: (a) $250,000 on the closing of the transaction, and (b) $250,000 on the date that is 30 days following the closing of the transaction. Both the initial loan and additional loan will bear an interest rate of 10% per annum, mature twelve months from the date of funding, and be convertible into company shares at a deemed conversion price equal to the trading price of the company shares on the Canadian Securities Exchange on the date of conversion.
The parties said they intend to complete the transaction as soon as is practicable, and subject to satisfactory completion of customary closing conditions, will use commercially reasonable efforts to enter into a definitive share purchase agreement by early January 2023.
According to its website, Progressus is a private company owned primarily by PowerTap Hydrogen Capital Corp., a hydrogen technology company, Vancouver, B.C., and Aberdeen International, a global resource investment company, Toronto, with a minority interest being privately held.
Progressus on Sept. 27, 2022, announced that it had discontinued negotiations with BioQuest Corp., Newport Beach, Calif., which has been involved in the CBD marketplace, pursuant to the Letter of Intent executed and announced on June 23, 2022, whereby BioQuest would acquire all of the issued and outstanding shares of Progressus.