Medis Technologies Ltd. (NASDAQ:MDTL) has entered into a Memorandum of Understanding (MOU) with two Russian business groups, defining programs for the purchase of Medis 24/7 Power Packs and ultimately for those groups to establish a production line for Medis fuel cell products in Russia.
The two groups are: ASPECT — the Association for Advanced Technologies of Russia, which represents the business development arm of a large group of high tech Russian entities and is the Prime Contractor for the largest Russian Federation funded project for the development of fuel cells for portable applications, and Tenzor MA, a leading Russian technology company primarily operating in the area of complex safety and fire control systems and management and control systems for major facilities such as nuclear power plants. The parties have established a detailed milestone based program for the certification of the 24/7 Power Pack in Russia, its marketing and distribution in Russia and finally the establishment of a full production assembly capability by Tenzor for the Russian market.
The MOU provides that after satisfactory completion of testing on UL certified units, Tenzor will purchase 10,000 24/7 Power packs from Medis’ semi-automatic line in Israel to commence promotion and marketing of the product in Russia. If the outcome of these promotional efforts are satisfactory to both parties, then the parties will move on to the next milestone which include sales in Russia of 250,000 Power Packs per month and then the establishment of a Power Pack assembly and fuel facility at the Tenzor plant capable of producing 1.5 million Power Packs per month. | The transaction contemplates an investment by the Russian groups of approximately $25 million to build the automated production line in Russia and the purchase of certain components, including framed electrodes, power management and others from Medis. In addition to the program relating to 24/7 Power Packs, the parties’ agreement contemplates their cooperation in the development of larger stationary fuel cells of approximately 2kW for development and sale in the Russian Federation.
Tenzor’s General Director, Mr. Igor B. Barsukov, commented that, “Tenzor is pleased to partner with Medis Technologies to commercialize and produce the Medis 24/7 Power Pack in Russia as well as pursue joint developments of larger fuel cell products based on the Medis fuel cell technology. From our review of the industry, we are impressed by what Medis has achieved both in its successful development of a qualified mature product and its development of the sophisticated manufacturing and quality control technologies needed to produce it in commercial quantities. Medis’ fuel cell technology has demonstrated that it has a multiple of the energy density per weight of lithium ion technology and the Medis proprietary fuel is uniquely friendly to the environment in comparison to all battery technologies and other fuel compounds with which we have worked. Most importantly, we believe that the 24/7 Power Pack product offers the Russian consumer a unique solution to a critical need for portable energy.”
Investors are encouraged to visit Tanzor MA’s website at: www.tenzor.dubna.ru/index_eng.html, and ASPECT’s website at: www.aspect.ru/index_eng.html.
Medis Technologies’ primary focus is on direct liquid fuel cell technology. Its business strategy is to sell its products to end users through retail outlets, service providers and to the military and other markets.
Loading...