RICHMOND, BC, Nov. 18 /CNW/ - VRB Power Systems Inc. (TSX-V: VRB) announces that it has been unsuccessful in its efforts to date in seeking offers for the merger, sale, refinancing or other strategic alternative for the Company. The Company has decided that it will not be proceeding with its previously announced rights offering. Consequently, the Company has substantially curtailed its manufacturing, research and development operations and laid-off or given notice terminating most of its employees. Given its current financial and operational status, the Company has ceased accepting new orders.
In order to meet its liabilities associated with the foregoing, the Company intends to dispose of its remaining inventory and other redundant assets. The Company intends to continue to seek offers for the possible sale or license of its core technology and patents or the reactivation of the Company's commercialization efforts.
In the event the Company is unable to make adequate arrangements to discharge its outstanding liabilities, or for other reasons, it may need to consider seeking other remedies under applicable corporate or insolvency legislation.
About VRB Power
Headquartered in Richmond, Canada, VRB Power Systems Inc. is an energy storage technology developer which is marketing, selling and manufacturing products utilizing the patented VRB Energy Storage System ("VRB-ESS(TM)"). The VRB-ESS can economically store and supply large amounts of electricity on demand and is focused on stationary applications. It is a long life, cost effective, low maintenance, efficient technology that allows for the scalability of power and storage capacity independently. The VRB-ESS is particularly beneficial to renewable energy providers, utilities and end users through its ability to "inventory" electricity, allowing for the optimal match of supply and demand.
The VRB-ESS is well suited for a variety of applications. Enabling the provision of "firm" capacity from intermittent renewable generation such as wind and solar; more cost effective and efficient generation of electricity in remote areas; capital deferral for utilities; and load levelling (peak shaving) applications. The VRB-ESS is also capable of providing backup power solutions including applications for utility sub-stations and telecommunication sites. The VRB-ESS is characterized by having the lowest ecological impact of all energy storage technologies and is unlike most other conventional energy storage systems that rely on substances such as lead or cadmium.
Caution regarding forward-looking statements: VRB Power's press releases may contain forward-looking statements. These statements are based on management's current expectations and beliefs which are subject to a number of known and unknown risks and uncertainties (including, but not limited to, the risk factors described in VRB Power's Annual Information Form filed with the British Columbia Securities Commission and available at www.sedar.com) that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. The Company does not assume any obligation to update any forward-looking statements contained in this press release.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Vince Sorace President