Equitex, Inc. (Nasdaq:EQTX) announced it has executed an agreement to acquire Hydrogen Power, Inc. through a newly formed Equitex subsidiary.
HPI’s stockholders will receive that number of shares of Equitex common stock, at closing, equal to approximately 29% of Equitex’s post closing outstanding common shares. In addition, HPI’s stockholders will receive certain shares of Equitex’s newly created Series L Preferred Stock which, subject to achievement of certain performance benchmarks, shall be convertible in tranches into additional shares of Equitex’s common stock equal to 40% of Equitex’s outstanding common stock before each conversion at 180, 270 and 360 days following the closing date. These benchmarks include HPI development of prototype generators, with marketable value, for various applications of their hydrogen technology including various micro and portable power applications and macro power applications such as fuel cells and internal combustion engines.
Equitex has also agreed to immediately loan HPI $3,000,000, $1,000,000 of which was advanced in July 2005, and the balance of which is to be advanced within four days.
Hydrogen Power is a Seattle-based company which has licensed a patented technology developed at the University of British Columbia for producing hydrogen gas in a process called Hydrogen Now(TM) – which creates pure hydrogen from the reaction of aluminum and water and sea water.
Aluminum is the third most abundant element (after oxygen and silicon) in the earth’s crust and water is widely available. In addition waste or scrap aluminum may be used and the by-products can be recycled. The hydrogen produced can directly power any fuel cell or internal combustion engine application.
Equitex, Inc. is a holding company operating through its majority-owned publicly traded subsidiary FastFunds Financial Corporation (OTCBB:FFFC) of Minnetonka, Minnesota, as well as its majority-owned subsidiary Denaris Corporation.
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