Power Technology, Inc. has signed a letter of intent to acquire the assets of Sentry Power LLC for total consideration of $1,252,500, paid $960,000 in the common stock of Power Technology and $292,500 in cash to be contributed as capital to the new subsidiary.
Power Technology also announced that it has received formal written notice from the United States Patent and Trademark Office of the Allowability of a Patent for its core battery technology.
Sentry Power sells battery driven back up uninterrupted power supply systems for commercial and residential usage. The letter of intent is non-binding and subject to the completion of customary due diligence and an audit of the Sentry Power's previous operations.
Bernard J. Walter, CEO of Power Technology, stated: "Sentry is already selling battery powered backup uninterrupted power supply systems into the market, and it can definitely benefit from the battery technology developed by our company. Sentry is a good example of a truly complementary transaction matching technology with an existing customer base and distribution system. We believe the transaction will be accretive in 2006, and look forward to incorporating our battery technology into Sentry Power products as soon as possible".
Michael Julian, President of Sentry Power added "We believe this transaction is a great marriage of our product and customer base with Power Technology's ability to improve the performance of the batteries necessary to provide reliable, long lived back up power supply systems. We look forward to consolidating our operations and growing our companies together."
Power Technology's Walter commented, "We are delighted to also announce that the U.S. Patent Office has notified us that our patent claims will be allowed, thus allowing us to pursue the commercialization of our technology with intellectual property protection. We are proud to be developing and protecting our unique battery technology to serve as an alternative energy resource for many uses, including battery powered bicycles, hybrid vehicles, electric vehicles and solar energy."
The Power Technology invention is a battery comprised of electrical current collectors constructed of reticulated vitreous carbon covered with a thin layer of a lead tin alloy. The current collectors create up to four times higher surface area for electrochemical reactions to take place compared to those in a typical lead acid battery, which results in a battery with higher efficiency and higher capacity meaning more electricity is generated.
