Attached files
Exhibit 99.1
[SKY HARVEST WINDPOWER CORP.LOGO]
SKY HARVEST TO ACQUIRE VERTICAL AXIS WIND TURBINE TECHNOLOGY
AND MANUFACTURING FACILITIES
July 9, 2013 Symbol: SKYH:OTC Markets
VANCOUVER, BRITISH COLUMBIA - Sky Harvest Windpower Corp. ("Sky Harvest" or the
"Company") is pleased to announce that it has entered into an agreement to
acquire a vertical axis wind turbine manufacturing and sales business from a
private Canadian company in consideration of the issuance of 650,000 shares of
its common stock, cash payments totalling $65,000, and the grant of an option to
the vendor to acquire up to 550,000 shares of its common stock at a price of
$0.10 for a period of five years. This grant is pursuant to the Company's
previously announced 2011 Stock Option Plan. In addition, Sky Harvest has agreed
to pay the vendor a royalty of $200 for every vertical axis wind turbine that it
sells for a period of ten years. The vendor will also receive 500,000 voting
shares of the subsidiary company that holds the turbine assets if that company's
shares trade publicly on a recognized stock exchange or quotation system. As
part of the agreement, Sky Harvest has acquired the intellectual property rights
relating to the turbine design, and leasehold interests in both manufacturing
facilities and equipment.
Sky Harvest has received written expressions of interest for the purchase of
over 13,000 vertical axis turbines from parties in four different countries. The
sale of such number of turbines would generate revenue of approximately $250
million. Sky Harvest has also entered into discussions with additional parties
with compatible technology regarding the potential joint venture development of
additional wind turbine products.
Unlike most wind turbines which have blades that rotate around a horizontal
axis, a vertical axis wind turbine has blades that spin vertically around a
horizontal mast. They are primarily used in remote areas to provide electricity
to communication towers, mines, and communities that typically rely on diesel or
propane for power generation, which results in reduced costs to the user, as
well as a smaller environmental impact through the reduced use of fossil fuels
and no risk of on-site diesel spills. These turbines are also suitable for rural
areas of developing countries where grid infrastructure is minimal or
non-existent. They can also be mounted near the upper portion of commercial
smoke stacks and are powered by the updraft.
The principal advantages of a vertical axis wind turbine include low noise
levels, minimal vibrations due to low RPM, the ability to utilize wind from any
direction, ease of installation and maintenance, durability, and very low impact
to wildlife. In addition, the Sky Harvest turbine is self-starting and begins to
move at wind speeds as low as two meters per second and commence generating
power at wind speeds of three meters per second. The additional advantages of
the Sky Harvest turbine when compared to its competitors are its ability to
withstand temperatures well below freezing and to operate without a driveshaft
or gearbox.
In connection with the acquisition, Sky Harvest's President, William Iny,
stated, "We are excited about the potential market for our vertical axis wind
turbine given that there are many areas of the world where horizontal turbines
are not feasible due to a lack of infrastructure or public resistance to
large-scale projects. The initial interest that we have received from
prospective customers is overwhelming and not only reflects the features of our
turbine, but also the potential market for this type of product. Our Board
believes that this manufacture-ready segment of our growing business will bring
additional value to our shareholders. Through the development of highly
engineered vertical turbines, our goal is to become the pre-eminent, reliable
supplier to the telecommunications and remote community power generation
sectors."
In addition to planned manufacturing and sales activities, Sky Harvest will also
focus on further turbine research and development in order to introduce new
products for commercial use. The company expects that this may include grant or
joint venture opportunities with government entities, universities, and private
corporations.
In connection with the acquisition, Sky Harvest has incorporated a wholly-owned
subsidiary under the name "Sky Vertical Technologies Inc." ("Sky Vertical") that
holds the assets and will undertake operations. Sky Vertical's initial Board of
Directors consists of Kyle Loney and Harry Bauskin. Mr. Loney will act as the
subsidiary's President and Chief Executive Officer while Patricia J. Shorr will
act as the Chief Financial Officer.
Mr. Loney has acted as a project acquisition consultant to Sky Harvest since
2011. He holds an Economics degree from Union College in New York and has acted
as Vice-President of Business Operations for the Ecogen Group of Companies,
which aids clients with solar power project development. Ecogen's projects to
date have involved over $300 million in capital costs. Mr. Bauskin and Ms. Shorr
both act as directors of Sky Harvest since 2011.
Mr. Bauskin has extensive experience in the banking and investment sectors,
including various positions with Bank Hapoalim, Israel's largest bank, over a 30
year period. These positions included acting as head of the bank's Toronto and
Canadian divisions and head of the Investment Advice Division in Jerusalem.
Ms. Shorr has over 25 years of experience in the wind energy business. Since
1999, Ms. Shorr has acted as a principal of Spectrum Capital Corporation, a
company that consults to wind and solar energy developers and is involved in the
commercial mortgage brokerage sector. During the course of her career, Ms. Shorr
has been involved in renewable energy projects, both completed and in
development, with an estimated aggregate cost of approximately $950 million.
Sky Harvest further announces that it has granted stock options to consultants
of the Company to acquire up to an aggregate of 500,000 shares of its common
stock at a price of $0.10 for a period of five years. This grant is also
pursuant to the Company's previously announced 2011 Stock Option Plan.
Sky Harvest invites shareholders and other interested parties to visit its
website located at www.skyharvestwind.com or contact Sky Harvest at 604-267-3041
locally or toll-free at 1-877-700-7021.
SKY HARVEST WINDPOWER CORP.
William Iny, CEO
Sky Harvest Windpower Corp. is a United States and British Columbia reporting
issuer involved in development stage wind power projects located in southwest
Saskatchewan, Canada, as well as the design, manufacture, and sale of vertical
axis wind turbines.
Safe harbor for Forward-Looking Statements: Except for statements of historical
fact, the information presented herein constitutes forward-looking statements.
Forward-looking statements may include financial and other projections, as well
as statements regarding the Company's future plans, objectives or economic
performance, or the assumptions underlying any of the foregoing. The Company
uses words such as "may", "would", "could", "will", "likely", "expect",
"anticipate", "believe", "intend", "plan", "forecast", "project", "estimate" and
similar expressions to identify forward-looking statements. Any such
forward-looking statements are based on assumptions and analyses made by the
Company in light of its experience and its perception of historical trends,
current conditions and expected future developments, as well as other factors we
believe are appropriate in the circumstances. However, whether actual results
and developments will conform to the Company's expectations and predictions is
subject to a number of risks, assumptions and uncertainties. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the company to be materially different from those indicated. Forward looking
statements in this press release include the following: that the Company will
complete the acquisition of the vertical axis wind turbine business; that there
will be significant demand for the Company's vertical axis wind turbine; that
the Company will be able to raise financing sufficient to develop its vertical
axis wind turbine manufacturing business; that the Company will be able to
manufacture sufficient turbines to meet demand; that expressions of interest
regarding its turbine that the Company has received will translate into actual
sales of the product; that the Company will be able to reach arrangements with
government entities, universities, and private companies for joint venture and
grant opportunities; and that the Sky Vertical turbine has attributes that will
provide the Company with a competitive advantage over its competitors in the
vertical axis wind turbine sector. Factors which may delay or prevent these
forward looking statements from being realized include that we may not be able
to raise sufficient funds to expand our operations and that we may not be able
to generate sufficient sales on a timely basis. Readers should refer to the risk
disclosures outlined in the Company's periodic reports filed from time to time
with the United States Securities and Exchange Commission on EDGAR at
www.sec.gov and with the British Columbia Securities Commission at
www.sedar.com.
The securities referred to herein have not been and will not be registered under
the U.S. Securities Act of 1933 or the securities laws of any other jurisdiction
and may not be offered or sold in the United States absent an exemption from, or
in a transaction not subject to, the registration requirements of the U.S.
Securities Act of 1933 and any other applicable securities laws. This news
release does not constitute an offer to sell, or the solicitation of an offer to
buy, the securities, nor shall there be any sale of any of the securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful.
For further information:
Sky Harvest at 604-267-3041 locally or toll-free 1-877-700-702
