EnerDynamic Hybrid Technologies Enters Letter of Intent to Add United States Based Sales and Manufacturing Capability
Welland, Ontario and Sunrise, Arizona--(Newsfile Corp. - November 20, 2017) - EnerDynamic Hybrid Technologies Corp. (TSXV: EHT) ("EHT") is pleased to announce that it has signed a Letter of Intent to form a Joint Venture ("JV") with Custom Complex Structures ("CCS"), a subsidiary of CampCorp USA. The JV Agreement will combine EHT's proprietary ENERTEC Fire Retardant Structural Insulated Panel technology ("FRSIP"), including the ENERTEC embedded solar panels, with CCS's modular house manufacturing in Sunrise, Arizona.
The JV will see EHT and CCS work together in the South Western United States, as well as Western Canada, for marketing, sales and manufacturing of EHT's ENERTEC modular housing system with integrated embedded solar roofs. This is especially important in the California market where all new houses (and significant renovations) to be built after January 1, 2020 must be Zero Net Energy (ZNE) compliant. A ZNE compliant house in California, under Title 24 regulations, must generate (on-site) as much energy as it consumes. To achieve this, builders must deploy solar panels, geothermal heating or other forms of renewable energy as well as ultra-high efficiency insulation. The ultra-light, durable ENERTEC embedded solar roof panels ideally meet and exceed this requirement.
CCS operates its manufacturing facility in Sunrise, Arizona, which can employee a workforce up to 140 personnel and has produced over 700 modular units, delivered across the South Western United States. With an established sales force, clear market position, advanced manufacturing capability and a good understanding of the potential, the parties anticipate creating considerable growth opportunities.
Following execution of a definitive agreement, EHT will have successfully secured manufacturing capability in the United States in addition to its Welland, Ontario and West African production facilities. While the ENERTEC wall panels would be produced in proximity to the customer, the embedded solar component of the ENERTEC roof sections will continue to be produced in the Welland facility and delivered to the appropriate regional manufacturing facility for integration.
John Gamble, CEO of EHT, commented that "this is a strategic joint venture intended to open market access for the ENERTEC products by partnering with established, reputable market participants. Among all the recognized opportunities in the South Western United States and Western Canada, the California market stands out. That market is set to undergo a complete evolution in its housing industry with the ZNE policy being implemented. EHT will now be positioned to capitalize on this market potential which is projected to be in the hundreds of millions of dollars by 2020." Mr. Gamble further noted that "the support of an experienced external sales force, focussed within the North American market, is of great benefit to our organization which is internally focussed on the West African market at this time."
United States housing sales topped $611 Billion USD in the most recent year. The modular/prefabricated structure segment of the industry accounts for 3% of this market. For each additional 1% of market share that the modular/prefabricated structure segment gains, an increase of over $6 Billion would be realized. ENERTEC products are suited to support that target growth across every relevant North American market.
About EnerDynamic Hybrid Technologies
EHT delivers proprietary, turn-key energy solutions which are intelligent, bankable and sustainable. EHT's expertise includes the development of its ENERTEC module structures with full integration of smart energy solutions. Using a proprietary skin and foam core that is stronger than traditional wood or steel structural insulated panels, EHT provides exceptional thermal energy efficiency in modular homes, cold storage facilities, residential/commercial out buildings and emergency/temporary shelters. EHT works with its partners worldwide to erect the buildings on-site utilizing EHT staff and local crews. In addition to traditional support to established electrical networks, ENERTEC buildings excel where no electrical grid exists.
The EHT advanced ENERTEC Modular Wall and Roof System uses a proprietary skin and foam core that is stronger and more energy efficient than traditional wood or steel structures providing the highest ratings for energy efficiency. EHT works with its partners worldwide to erect the buildings on-site utilizing EHT staff and local crews. After installation, each structure can be furnished and finished to meet the customer's requirements including siding, tile, kitchens and bathrooms or segregated commercial rooms. The finished wall product can be shipped on pallets and delivered via rail, truck or water in standard formats.
At the core of the ENERTEC product line is the ENERTEC Embedded Solar Roof Module. Solar cells can be embedded in a proprietary fire proof skin resulting in substantial cost savings by eliminating heavy glass panels and aluminum racking required for traditional solar panels. Two barriers to greater adoption of solar energy are weight limitations of the roof on which solar panels could be deployed and onerous shipping and labour costs. A lighter product at a better price point will open a larger market for solar due to the faster return of capital investment especially for rural and remote users looking to go off-grid. Furthermore, the entire EHT embedded solar roof becomes a massive solar panel capable of producing significantly more energy than the home requires, allowing the structure to then become an important source of power for the local micro grid or large battery storage systems.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The statements herein that are not historical facts are forward-looking statements. Forward-looking information relating to sales of the products (the "Opportunities") involves risk, uncertainties and other factors that could cause actual events, results, performance, prospects, for the Opportunities to differ materially from those expressed or implied by such forward-looking information. Although EHT believes that the assumptions used in preparing the forward-looking information on the Opportunities outlined in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. EHT disclaims any intention or obligation to update or revise any forward-looking information, whether a result of new information, future events or otherwise, other than as required by applicable securities laws.
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