Covol Technologies Inc. announces the closing of the sale of Utah Synfuel No. 1 to Coaltech.LEHI, Utah--(BUSINESS WIRE)--March 11, 1997-- A limited partnership consisting of AJG AJG Arthur J Gallagher & Co Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Inc., Square D Co. and Covol Technologies Inc. Covol Technologies Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CVOL CVOL Control Volume ) Tuesday announced that it has finalized See finalization. the sale of the Utah Synfuel syn·fu·el n. A liquid or gaseous fuel derived from coal, shale, or tar sand, or obtained by fermentation of certain substances, such as grain. [syn(thetic) + fuel.] No. 1 synthetic coal briquetting facility. The facility converts coal fines, which are small particles of coal 1/4" or smaller, into a solid 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. using Covol's patented technology. The purchaser is Coaltech No. 1, L.P., a limited partnership consisting of Covol Technologies Inc. as general partner (holding a 1 percent interest), AJG Financial Services Inc. and Square D Co. AJG Financial Services Inc. is a wholly-owned subsidiary of Arthur J. Gallagher & Co., an international insurance brokerage and risk management services company. Square D Co. is the market-leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. supplier of electrical distribution, automation and industrial control products for the distribution, application and control of electrical energy. Square D is a brand of Groupe Schneider-North America. The transaction includes the sale of the synthetic coal production facility for $3.5 million and the granting of a license to use Covol's patented coal briquetting technology. Payments for the technology license fee will be: $1.4 million as an "initial license fee" (paid at closing), $1.1 million as a "production goal fee" to be paid once the facility achieves a designated production level and quarterly payments of an "earned license fee" based on production. If the facility operates at projected production levels, the earned license fee should be approximately $7 million per year. In addition, Covol will operate the plant for a designated fee per ton. Finally, the transaction provides for the option for Coaltech to purchase a second production line to be constructed by Covol at the same Utah location. The second 360,000 ton per year line is expected to be placed in service before June 30, 1997. Brent Cook, Covol's president and chief executive officer, stated, "This transaction is a high water mark for Covol - the commercialization of Covol's patented coal technology. We are extremely pleased to have forged strategic alliances with companies like Gallagher and Square D, who are not only committed to using innovative technologies but also improving the environment and extending the nation's fuel reserves." Covol Technologies Inc. is a technology development company focused on recycling yesterday's waste into tomorrow's resources. 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. in this release involve a number of risks and uncertainties including, but not limited to, product demand, market acceptance, changing economic conditions, risks in product and technology development, the effect of the company's accounting policies and other risk factors detailed in the company's SEC filings. CONTACT: Covol Technologies Inc., Lehi Alan Ayers, 801/768-4481 FAX 801/768-4483 |
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