Covol Technologies Inc. Receives River Hill Contingent Payment.Business Editors
LEHI, Utah--(BUSINESS WIRE)--July 7, 2000
Covol Technologies Inc. (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CVOL CVOL Control Volume ), Friday announced that it has successfully met the conditions triggering a lump sum Lump sum
A large one-time payment of money. advanced royalty payment on the River Hill facility.
The gross payment to Covol is $5.75 million. When Covol sold its River Hill facility in August 1999, there were two contingent payments stipulated. The first of these payments was contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress"
contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent Covol obtaining a three-year off-take agreement for the purchase of the synthetic fuel Synthetic fuel or synfuel is any liquid fuel obtained from coal, natural gas, or biomass. It can sometimes refer to fuels derived from other solids such as oil shale, tar sand, waste plastics, or from the fermentation of biomatter. produced at the facility, in addition to producing at least 10,000 tons of synthetic fuel in a consecutive 10-day period.
The second contingent payment is based upon Covol operating the River Hill facility at 115 percent of rated capacity over a consecutive three-month period. Covol met the requirements of the first contingent payment and received the funds on June 30, 2000.
One of Covol's key objectives over the last year was the sale of the four facilities the company constructed. After meeting this objective, Covol then focused on achieving the contingent payments related to the sales of its facilities.
As previously announced, Covol received two contingent payments in April 2000, and with the receipt of this most recent contingent payment, it leaves only one additional contingent payment of $4 million to be received. Accordingly, Covol has achieved three of the four contingent payments.
Steven G. Stewart, chief financial officer, commented, "With the realization of the River Hill contingent payment, Covol was able to end the current quarter with over $10 million in cash. We are pleased with Covol's current liquidity and appreciate the efforts made by the Covol employees that caused these contingent payments to be earned.
"We look forward to realizing our final contingency payment later this year."
Statements in this news release that relate to future plans, possible transactions, or projected valuations are forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including any statement with respect to anticipated products to be produced using Covol's technology and Covol's strategy.
Such statements are subject to risks and uncertainties that could cause actual results to differ materially. There are a number of business factors which singularly or combined may affect Covol's future operating results.
In addition to matters affecting Covol's industry or the coal industry or the economy generally, factors which could cause actual results to differ from expectations set forth in above identified forward-looking statements include but are not limited to Covol's ability to successfully negotiate terms and consummate proposed transactions, ability to sell company-owned synthetic fuel facilities on favorable terms, ability to obtain necessary capital or financing, ability to comply with covenants in financing agreements Financing Agreements
In the context of project financing, the documents which provide the project financing and sponsor support for the project as defined in the project contracts. , including financial performance criteria, ability to conserve capital through cost reductions until operating revenues operating revenue
Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. exceed expenses, ability of licensees to market synthetic fuel produced, generating royalties for Covol, ability of licensees to achieve expected production levels at the synthetic fuel facilities, favorable IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. tax treatment, availability of natural resources and suitable raw material, ability to locate appropriate sites for facilities, ability of Covol to complete specific research and development projects, market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market
penetration - the act of entering into or through something; "the penetration of upper management by women" from competing technologies and the commercial viability of technologies.