Composite Technology Corp. (CTC) is pleased to announce the execution of the Share Exchange Agreement with shareholders of EU Energy plc representing at least 95% of the issued and outstanding shares of EU Energy plc (EU Energy), which allows the acquisition of 100% of EU Energy. EU Energy owns 100% of the issued and outstanding capital stock of a group of companies which own the rights to produce and sell worldwide the DeWind range of wind energy generation turbines.
Under the terms of the Share Exchange Agreement, subject to customary closing conditions, the EU Energy shareholders executing such agreement have agreed to transfer all of their shares in EU Energy to CTC, and, following a special EU Energy Shareholders' Meeting on the 14th of June and a closing scheduled for July 3, 2006, CTC expects to receive 100% of the ownership of EU Energy, with any dissenting shareholders transferring their shares in accordance with the terms of certain "drag along" rights. Mr. Benton Wilcoxon will remain as Chief Executive Officer of CTC following completion of the acquisition.
Through various frame agreements for the new 2 megawatt (MW) D8.2 60Hz wind energy turbines, EU Energy customers have agreed to purchase 2,526 MW (1,263 turbines) for delivery in 2007-2012, including certain customers which have signed turbine purchase agreements for 286 MW (142 turbines) for delivery in 2007. These frame agreements represent anticipated revenue of approximately $2.8 billion for EU Energy.
Benton H Wilcoxon, CEO of CTC and Michael Porter, CEO of EU Energy have released the following joint statement: "CTC and the EU Energy team have been working together for two years to identify and secure excellence in wind power technologies that will accelerate the implementation of wind power generation as an economically viable reality for renewable energy. We believe that DeWind turbines and CTC conductors, each address urgent issues facing congested grid systems as well as the need for reliable renewable energy, while contributing significantly to efforts to make the electrical supply industry greener, and more efficient. We look forward to making our vision a real alternative for the industry."
Composite Technology Corp., based in Irvine, CA, develops, manufactures and sells products that introduce the advantages of high performance composite materials to create superior applications for the generation, transmission and distribution of electrical power. The company's novel and proprietary Aluminum Composite Core Conductor (ACCC) is a cost effective solution for the introduction of reserve electrical transmission capacity into a saturated electrical grid, while reducing operating costs and in many cases capital costs. The elimination of significant sag at higher operating temperatures allows users of ACCC to reduce transmission bottlenecks, span large distances, reduce supporting structures and improve grid reliability.