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Clean Power Capital Comments on IIROC Suspension of Trading

By November 27, 2020 6   min read  (1046 words)

November 27, 2020 |

Clean Power Capital Comments on IIROC Suspension of Trading

VANCOUVER, British Columbia — Clean Power Capital Corp. (CSE: MOVE) (FWB: 2K6) (OTC: MOTNF) (” Clean Power ” or the ” Company ” or ” MOVE “). The company is issuing this press release to comment on the stock freeze on the Frankfurt Stock Exchange and the trading freeze imposed by the IIROC, both on November 24, 2020. 

The Company wishes to make certain statements in a paid promotional newsletter (“Newsletter”) published in Germany about the Company’s investment in PowerTap Hydrogen Fueling Corp. (” PowerTap“).

This newsletter was published as part of a consulting contract announced on October 28, 2020, between the company and First Marketing GmbH (” FMG“), an investor relations and marketing company based in Heidelberg, to provide marketing services to the European markets. FMG is independent of the company, but the managers of FMG have bought shares in the company in the last two private placements, which is approximately 7% of the issued and outstanding shares of MOVE. As part of the agreement, the company agreed to provide FMG with up to EUR 500,000 over a period of 6 months to develop the necessary content and graphics and to start its program to increase the market opportunities of the European Union The company is currently reviewing the terms of the agreement with FMG.

It is the company’s policy to thoroughly review all information disclosed about the company and its investments. The Company understands that a recent article about the Company’s investment in PowerTap and PowerTap technology may not be sufficiently clear for a reader to understand the full context of the article and that it may have been overly promotional. With this in mind, the company would like to describe certain statements in this article.

The article states that PowerTap technology can produce the most environmentally friendly and cheapest hydrogen available. The PowerTap technology comprises modular units for the production of hydrogen by means of steam methane reforming (SMR) on-site and its delivery. B. by electrolysis, has the potential for environmentally friendly and clean hydrogen technology. It also has the potential to be less expensive compared to off-site hydrogen.

The article also noted that a PowerTap hydrogen filling station installed would cost approximately $ 4 million per station. Trading in emissions certificates can generate annual revenues of around USD 2 million per filling station, even without revenues from the sale of hydrogen. The company wants to clarify that the $ 2 million per gas station stated in the article is actually the annual estimated carbon credits obtained from the State of California’s Low Carbon Fuel Standard Infrastructure Credit Program ( https://ww2.arb.ca.gov/resources/documents/lcfs-zev-infrastructure-crediting ).

The article also indicated that an initial expansion to 1,000 gas stations projected by PowerTap could mean a one-time payment of $ 2 billion. This estimate is based on the assumption that each of the expected 1,000 gas stations will have the capacity to produce 2,000 kg of hydrogen per day and generate income from California Hydrogen Infrastructure Credits of potentially $ 2 million per gas station per year.

However, the company notes that PowerTap is not anticipating an initial 1,000-station expansion in the state of California. PowerTap anticipates that the installation of their California gas station network will actually consist of up to 500 gas stations located at existing gas stations and truck rest stops, as indicated in the company’s press releases dated November 2, 2020, and November 23, 2020, mentioned.

As a result, the estimate given in the article, which is based on 1,000 gas stations with the potential to earn a one-time payment of $ 2 billion, is incorrect. Should PowerTap achieve an initial launch of 500 gas stations in the US state of California, then the gas station network has the potential to generate annual revenues from emissions certificates of up to 1 billion USD.

It should be noted that the originally planned expansion by 500 petrol stations is subject to the receipt of the zoning permit for petrol station operation from the responsible municipal authority. However, it is expected that by building modular hydrogen filling stations at existing filling stations and truck rest stops, the existing operators who have current zoning permits on which PowerTap is dependent. Collocation agreements with existing filling stations and truck operators will be negotiated closer to the start of the expansion. The California Hydrogen Infrastructure credits available for each gas station are only earned once a gas station is installed and available to the customer. But then it will be an annual payment instead of a one-off payment.

Initial development of this 3rd generation PowerTap hydrogen fueling station network, which builds on and enhances existing and deployed 1st and 2nd generation PowerTap stations, is expected to begin with further design and development updates in the fourth quarter of 2020.

Subject to the progress of this initial phase, the remaining development and initial manufacturing phases are expected to begin in the first quarter of 2021 and unit production will progress through the second half of 2021. As announced in the company’s October 28, 2020 press release, the total cost of all stages of development of the 3rd generation PowerTap product will be approximately $ 17 million. At each stage of development, PowerTap plans to secure funding for the project through available government funding and credit, as well as through offerings for self-financing, loans and convertible bonds. The timing of the development for the next phases and the costs for each phase depend on the success in each development phase,

The company confirms that it is responsible for the content of all newsletters published by the company’s paid investor relations and marketing firms and will in the future introduce enhanced verification procedures that will result from the company’s management checking all newsletters for accuracy Content and an additional review by the company’s legal advisor to ensure compliance with applicable securities disclosure requirements. Company-sponsored newsletters may not be distributed without prior approval from the company’s management and legal advisor.

About Clean Power Capital Corp.

Clean Power is an investment firm specializing in customized investments in private and public companies that can operate in a variety of industries, with the current focus on the healthcare and renewable energy industries. The investment mandate specifically focuses on high return investment opportunities, the ability to achieve adequate capital appreciation and seek liquidity in our investments. You can find a copy of the amended and newly formulated investment guidelines of Clean Power in the company profile at www.sedar.com .

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