mPhase Announces Letter of Intent to Acquire Energy Innovative Products, Inc.
News Aug 03, 2011
mPhase Technologies, Inc. has announced it has entered into a letter of intent (LOI) to acquire Energy Innovative Products, Inc. (EIP), a developer of proprietary technologies for reducing energy usage in refrigeration and cooling systems, as well as equipment utilizing AC induction motors.
EIP, based in Fairfield, NJ, uses patented and patent pending solutions to offer a series of products that control voltage and current used by compressor systems, including those in refrigeration decks, HVAC wall units, commercial refrigeration systems, and consumer equipment.
The company, founded in 2008, believes its technology is uniquely positioned to capitalize on each of these multi-billion dollar market opportunities by allowing legacy systems to achieve Energy Star status as well as compliance with emerging standards by the United States Department of Energy (DOE) and other regulatory bodies.
In the United States alone, there are several million legacy refrigerated vending machines used by major beverage companies.
EIP's solution is the only company certified for Energy Star status and able to deliver over a 50% reduction in power consumption by machines such as the Dixie Narco 501 without reducing efficiency or cooling and without requiring a change-out in the unit's refrigeration deck.
Governmental and power company rebates are available to support the purchase of EIP's products in several states.
According to Scott Caputo, President of EIP, "Corporate demand for energy saving solutions is increasing worldwide driven by rising fuel costs, skyrocketing electricity costs, and growing concerns about greenhouse gases and their impact on our world's environment."
The terms of the deal include the issuance of common shares and warrants for an 81% stake in EIP. "We are extremely excited about the upside EIP offers to our organization over the coming years," said Ron Durando, CEO of mPhase Technologies, Inc.
The transaction is expected to become a Definitive Agreement in August 2011 and close by October 2011. EIP is being advised on the transaction by Source Capital Group, Inc., a boutique investment banking firm focused on emerging growth companies and based in Westport, CT.
Said Vik Grover, CFA, Senior Managing Director at SCG, "We expect the transaction to be significantly accretive to mPhase shareholders in 2012-2013 and EIP to become a market leader in the energy management space."