Sentry Power Signs Letter of Intent to be Acquired by Power Technology
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. Sentry Power sells battery-driven backup uninterrupted power supply systems for commercial and residential use.
The letter of intent is nonbinding and subject to the completion of customary due diligence and an audit of the Sentry Power's previous operations.
Bernard J. Walter, chief executive officer of Power Technology, said, "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."
Michael Julian, president of Sentry Power, said, "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 backup power supply systems. We look forward to consolidating our operations and growing our companies together."
Power Technology Inc. is a Research and Development Company engaged in activities regarding alternative battery technology using patent-pending, ultralight materials with up to 50% less weight and significantly less lead content than conventional batteries, Walter said. The company is in the early stages of commercializing its battery technology and has designed equipment and systems to manufacture its patent pending batteries.
