New Jersey- based Millennium Cell Inc. (NASDAQ: MCEL) and Singapore- based Horizon Fuel Cell Technologies Ltd. have agreed to jointly develop and sell hydrogen fuel cell products on a global basis.
They also agreed to exchange equity in their companies valued at $5 million. Under the LOI, each company will receive preferred product pricing, as well as the ability to resell certain products developed by the two companies on a global basis.
Millennium Cell issued Horizon approximately 12% of its outstanding shares in exchange for a non-interest bearing convertible note in the principal amount of $5 million. The one-month note from Horizon will automatically convert into approximately 7% of Horizon’s outstanding common stock upon a vote by Horizon’s shareholders. Both parties have agreed to a one year lock-up period for the common stock.
In August, Horizon licensed Millennium Cell’s Hydrogen on Demand® technology for the purpose of co-developing compatible hydrogen storage cartridges for the next wave of Horizon fuel cell products. The new agreement strengthens their relationship and enhances their ability to jointly develop and sell products. Several products have already been identified for development.
Horizon recently demonstrated an emergency power unit for the first time at the CEATEC Japan exhibition. The prototype system provided approximately 10 hours of runtime at 50 watts utilizing Horizon’s fuel cells powered by Millennium Cell’s Hydrogen on Demand® chemical hydride fuel technology. Horizon and Millennium Cell plan to launch the emergency power unit under in 2008 as a clean, quiet, high energy alternative to lead acid battery based portable power packs. The two companies anticipate developing additional power source products for consumer and military use to be launched in 2008 and 2009.
Millennium Cell is a leader in the development of hydrogen battery technology used to power portable applications. Through its proprietary Hydrogen on Demand® fuel cartridges and PowerSkin” fuel cell modules, the Company provides increased energy density resulting in longer runtime and lighter weight in a compact space. The Company is working with market partners to meet the demand for a better battery in the military, medical, industrial and consumer electronics markets.
Horizon pioneered the sales of next-generation fuel cell power products in small consumer products, while developing larger-scale clean power solutions for larger-size applications such as portable power, transportation and aerospace. http://www.horizonfuelcell.com
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