Vancouver, British Columbia--(Newsfile Corp. - October 3, 2023) - Legend Power Systems Inc. (TSXV: LPS) (OTCQB: LPSIF) ("Legend Power" or the "Company"), a global leader in commercial electrical system solutions, announces operational and sales updates.
During the past year, Legend Power continued to adapt its solutions to a changing world and customer needs. The Company continued to invest in developing awareness and acceptance in a new solution category, Active Power Management (APM) and is well recognized as the leading APM brand. The Company has created a strong base for growth as our powerful and unique solutions become industry standards.
As a result of these operational activities, the Company is pleased to announce that it has received CAD$8 million of order commitments that have either been realized in the fourth quarter or are in various stages of finalization. The Company also announces an additional US$8 million in commitments for larger systems (currently in development) for future delivery.
Fourth quarter commitments range from retail to large, multiple building facilities; however, the Company made significant progress with the U.S. Federal Government, including an initial commitment for double-digit SmartGATE systems. Over the next decade, the U.S. Federal Government could account for over 10,000 systems. When combined with the verbal commitment for 300+ systems for a single vertical of a major US municipal government customer, the demand for Legend Power Systems SmartGATE continues to grow. At the end of the fiscal year ending September 30, 2023, Legend Power Systems has US$75 million of pending proposals and US$125 million of near-term opportunities. The Company estimates that the current 200 potential customers that are active in the sales funnel could be worth over US$2 billion to Legend.
"Interest in our Active Power Management solutions is growing across all of our targeted verticals, especially the U.S. government sectors," said Legend Power Systems CEO Randy Buchamer. "This is evidenced by our U.S. Federal Government commitments as well as a U.S. municipality verbally committing to over 300 systems over the next 5 years. The CAD$2.4 million equity financing that we closed in late summer along with a CAD$1 million net cash gain contribution from backlog sales as well as 5% cost reductions from improvement initiatives have strengthened our balance sheet to support these business development activities. I look forward to updating investors on our progress as these opportunities progress."
To support these order commitments, Legend Power is collaborating with outsourcing providers to reduce installation costs and enhance the financial feasibility of SmartGATE projects for customers. Moreover, with capacity planning completed and robust material resource planning mechanisms in place, the Company is primed to convert its commitments into sustained cash flow for the foreseeable future.
The Company also announces that it has renewed its agreement with Sophic Capital Inc. ("Sophic") to act as its Investor Relations firm. Sophic will be paid CAD$7,000 per month for a term of 12 months and Sean Peasgood, the authorized individual at Sophic, will receive 100,000 incentive stock options (the "Options") to acquire common shares in the capital of Legend Power (each a "Common Share"). The Options are non-transferable and exercisable for 5 years at CAD$0.18 per Option, subject to vesting provisions, with one-sixth vesting six months from the date of grant and one-sixth vesting every six months thereafter. Sophic and/or its authorized individual Sean Peasgood currently hold 1,717,700 Common Shares and 600,000 stock options in the capital of the Company.
About Legend Power® Systems Inc.
Legend Power Systems Inc. (https://legendpower.com) provides an intelligent energy management platform that analyzes and improves building energy challenges, significantly impacting asset management and corporate performance. Legend Power's proven solutions support proactive executive decision-making in a complex and volatile business and energy environment. The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment. Legend Power's unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.
For further information, please contact:
Jonathan Lansky, Director
+1 416 417 7664
Sean Peasgood, Investor Relations
+ 1 647 503 1054
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
This Press Release may contain statements which constitute "forward-looking information", including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR+ at www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results to not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.
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