Quantum (QEGY) Enters into MOU with Target Company
May 10, 2019 14:41 ET | Source: Quantum Energy, Inc.
CHICAGO, IL and SCOTTSDALE, AZ , May 10, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE
Quantum Energy Inc. (OTC: QEGY) (“Quantum”) is pleased to announce it and its subsidiary FTPM Resources, Inc. have entered into Non-Binding Memorandum of Understanding (“MOU”) with a target company that designs, manufacturers, operates, and sells its patented 1M, 2M, and 5M gallon per year, small-scale, modular biorefineries for the production of alternative liquid biofuels from organic waste streams. The biofuels can be mixed with, or can selectively replace, gasoline derived from fossil fuels. The bio fuels created by these small-scale modular systems can also be used to then further power distributed electric generators. The refineries are centrally manufactured and can be shipped anywhere in the world, which enables the target company to bring new energy sources to locations that would otherwise not have access to it.
Pursuant to the MOU, if certain conditions are met, including the availability of financing, among other things: (i) FTPM will enter into a joint venture with the target company, which would be jointly owned by FTPM and the target company, for the purpose of developing and marketing of a variety of value added food, feed and potentially medical grade products which allows ordinary farm grown corn to realize a much greater value than simply converting it into ethanol.(as disclosed in Quantum’s April 23, 2019 Form 8-K that was filed with the SEC on April 29, 2019) ; (ii) FTPM will have a 90-day option beginning April 30, 2019, to merge with the target company, whereby the target company would be the surviving entity; (iii) the target company will have the right to acquire shares of preferred stock of the Quantum, with such rights and preferences as the parties shall agree; and (iv) the target company would have the right to appoint members to Quantum’s board of directors.
Quantum’s Co-Chairman/CEO, Andrew J Kacic, said, “We are excited about this potential project, which if we are able to consummate, is expected to add significant assets and revenue to Quantum while allowing Quantum to stay focused on its goal of building and/or acquiring refinery projects or its “economic equivalent.” The target company’s plant offers an added benefit of manufacturing “greener” biofuels from agricultural waste products and is currently equipped to manufacture ethanol.”
The transactions with the target company would be consummated with a combination of cash, common stock and preferred stock to offer minimal dilution to the existing shareholders. If we are able to consummate thus transaction, we expect that the target company will be able to expand its operations throughout North America and Quantum would be building an ecosystem of the best people, partners and customers to bring forth innovative technologies that will produce high-quality and efficient biofuels, valuable biochemicals, adhesives, fertilizers, animal feed and more. No assurances can be given that Quantum will obtain sufficient capital to consummate the transactions contemplated by the MOU.
About Quantum Energy Inc.
Quantum is an energy focused company with a project emphasis toward refinery development, construction and operations in the United States and Canada, through its subsidiary Dominion Energy Processing Group, Inc. Quantum is continuing to work on proposed Bakken refinery development projects in Stoughton Saskatchewan, Canada and in North Dakota.
Safe Harbor Forward-Looking Statements
To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, further milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company’s development, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.
Andrew J. Kacic