RICHMOND, BC, Jan. 20 /CNW/ - VRB Power Systems Inc. ("VRB Power") (TSX-V: VRB) announces that it has received approval from the British Columbia Supreme Court to proceed with the sale of its assets pursuant to the completion of an Asset Purchase Agreement ("APA") dated December 23, 2008 with JD Holdings Inc., the parent company of Prudent Energy, based in Beijing, China.
Under the terms of the APA, JD Holdings Inc. has agreed to purchase substantially all of VRB Power's intellectual property rights (patents, trademarks and know-how), plant equipment and certain inventory items for $2,000,000 USD. An additional $125,000 USD will be allocated to clean up costs for VRB Power's Richmond British Columbia facility. A $600,000 USD non-refundable deposit has been received from JD Holdings Inc. and is currently being held in trust by Abakhan & Associates Inc., Interim Receiver of the company.
A court order was obtained from the British Columbia Supreme Court on January 19, 2009 which approves the sale with effect on January 28, 2009 ("Approval Date"). Any shareholder of VRB Power is entitled under the order to apply to the Court on one clear days' notice to the Interim Receiver to set aside or vary the order prior to January 28, 2009.
Proceeds from the sale of the assets, which is expected to be completed one day following the Approval Date, will be applied to settle outstanding creditors and other corporate liabilities of VRB Power.
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 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.
Philip McCourt Abakhan & Associates Inc.
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