Business
American Power Group Provides Update On Corporate Realignment
American Power Group Provides Update On Corporate Realignment.
About this update from American Power Group Corp.
[{"type":"text","content":"\n\n - Continued Low Priced Oil Negatively Impacting Operations and Revenue Opportunities -- Board Evaluating Immediate Closure of Operations -\n LYNNFIELD, Mass., Aug. 15, 2017 (GLOBE NEWSWIRE) -- American Power Group Corporation (OTCQB:APGI), today announced it will extend the filing of its June 30, 2017 Quarterly Form 10Q via SEC Form 12b-25.  On June 6, 2017, the company announced a corporate wide realignment of its strategic direction, reallocation of resources and reduction in workforce in response to significant operating losses due to the impact that continuing low oil prices were having on the company’s dual fuel and flare capture businesses.  The realignment resulted in a reduction in annual operating costs of over $2 million on a go forward basis. Chuck Coppa, APG’s CEO/CFO stated, “The fundamental conditions facing our dual fuel business over the last several years have not changed. With oil prices remaining below $50 per barrel, the price differential between oil and natural gas remains extremely tight. The resulting delays in customer orders have negatively impacted our dual fuel operations and have made them no longer sustainable. Our efforts since June to secure licensing relationships, master distributorship relationships and/or joint marketing relationships with several of the largest domestic natural gas retail/wholesale gas suppliers have not generated material traction. Despite favorable economic conditions in the Mexican market, delays in securing material orders as well as our limited access to working capital have forced us to discontinue operating as we have been in that market.” Mr. Coppa added, “Market conditions for our flare capture and recovery services in the Bakken region of North Dakota continue to be very soft, again due to low oil prices and reduction in the number of drill rigs operating in the region. We do not foresee any material positive changes in flare capture market conditions in the near term and have therefore elected to discontinue our flare capture initiative. As a result, we will report an impairment loss relating to our flare capture operations of approximately $1.5 million during the three months ended June 30, 2017.  We are currently in discussions with several parties regarding the sale of all flare capture equipment, the procee...