Company Makes Large Format Lithium Ion Cells and Batteries for Demanding Applications
WEST PALM BEACH, Fla. — (BUSINESS WIRE) — March 9, 2011 — China Nuvo Solar Energy, Inc. (OTCBB: CNUV) today announced plans to acquire lithium ion battery company Freya Energy Inc. (“Freya”). The parties have executed a non-binding Letter of Intent (“LOI”) and are moving toward the signing of a definitive agreement over the next sixty days. Pursuant to the terms of the LOI, China Nuvo Solar would acquire one hundred percent of the outstanding common stock of Freya. Further details of the agreement will be released in the near future. The Company will continue to trade under the stock ticker “CNUV” with Freya becoming a wholly owned subsidiary of the alternative energy parent.
Industry experts forecast the lithium battery market to triple from current levels of $11-13 billion to over $40 billion by 2015-2020. Historically, the lithium ion battery market has been principally 90% consumer related, however newer diversified applications including non-automotive vehicle propulsion, defense applications, and electrical storage systems ("ESS") are expected to be the new growth drivers.
"This potential acquisition of Freya Energy is the first in the series of planned steps in executing our business model and becoming a meaningful player within the renewable energy space. We believe Freya is an exciting opportunity for the Company and is part of our roll-up strategy to increase shareholder value. Freya is on the cusp of commercialization in a fast growing segment of the renewable energy sector that we believe offers unique advantages over similar technologies," stated Henry Fong, CEO of China Nuvo Solar Energy.
"This transaction is a logical next step in our commercialization efforts that we believe offers Freya the accessibility to the capital markets thereby allowing us to accelerate our path to market entry," commented Richard Fox, CEO of Freya.
Closing of the transaction is subject to customary conditions including, among other things, the negotiation and execution of definitive agreements as well as the approval of both companies' boards of directors and any necessary stockholder or regulatory approval.
About Freya Energy
Freya is a producer of safe large format lithium ion cells and batteries for demanding applications. Freya believes its proprietary separator provides greater safety than competitive products and provides a higher energy density than others on the market.
Freya's technology is protected by patent filings, ready for manufacture and requires no additional research and development. Freya has developed a commercialization plan for rapid market entry. Its personal relationships with known and established customers, positions the company for timely sales in the United States and Europe. Subject to initial funding and satisfactory prototypes, Freya has several million dollars in letters of intent that can be converted to purchase orders.
Freya has an experienced management and technical team led by well-respected innovators in battery technology.
About China Nuvo Solar Energy
China Nuvo Solar Energy, Inc. is a development stage company that owns unique patent pending solar and photovoltaic related technology. The Company's business model includes a roll-up strategy of clean energy companies and intellectual property within the renewable energy sector.
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.
China Nuvo Solar Energy, Inc.
Henry Fong, 561-514-9042