PowerCold Corporation (Pink Sheets:PWCL) announced today it has executed a Strategic Partnership Agreement with Industrial Mexicana, S.A., (IM) of Monterrey, Mexico. The Partnership provides that IM be the exclusive provider of Manufacturing Services for the areas of North America, Mexico and Central America, and have Distribution rights for Mexico and Central America for PowerCold Nauticon® Products: WDEC Evaporative Condenser and WDFC Wet/Dry Evaporative Fluid Cooler.
Under the new Agreement, IM will provide Manufacturing Services that will include: purchasing of all materials, maintaining proper inventory, providing proper plant, machinery and tooling and maintaining a supportive labor force. PowerCold should significantly improve its operating financials by reducing operating overhead and regulating and increasing cash flow.
Frank Simola, PowerCold CEO commented, “The increased demand and the anticipated projected growth for our unique evaporative cooling products requires additional operating capital, extended vendor credit lines and new capital for expansion to new manufacturing facilities. The Strategic Partnership with IM should reduce some of these capital needs, and the intermittent manufacturing operating cash flow problems that have hampered PowerCold’s growth will diminish and should disappear with IM in full production.”
IM has the operating resources, industry experience and manufacturing capabilities to support PowerCold’s current and future production needs. IM started producing cabinets and certain components in July 2007 and has since supplied over 150 units for PowerCold customers. IM’s flexible production capacities produced units varied in size from 20-ton to 165-ton units, which generated unit sales in the $15,000 to $45,000 range for each size.
Mauricio Sada, IM Director General commented, “IM’s extensive manufacturing experience and PowerCold’s innovative evaporative cooling products generate great synergies that will enhance the growth and continued success of both companies. This Strategic Partnership provides a solid platform for IM and PowerCold to address industry needs for energy efficient cooling products and services.”
The Strategic Partnership provides IM initial equity of one million shares of PowerCold stock, two hundred fifty thousand warrants per year for three years at seventy-five cents, one dollar and one dollar and twenty-five cents for each respective year, and the right to earn up to an additional three million shares for the IMSA Manufacturing Services. The term of the Agreement is for three years renewable for successive twelve (12) month terms.
Industrial Mexicana (IM) has been a leading designer and manufacturer of cooling towers and fluid coolers for over 45 years. With hundreds of packaged towers and a significant proportion of the field erected towers installed in Mexico, IM currently offers water cooling solutions for the industrial, power and process, and air conditioning sectors. IM has a fully integrated manufacturing facility in Santa Catarina, Nuevo Leon, ideally located 140 miles from the US border at Laredo, Texas.
PowerCold Corporation designs, develops and markets unique HVAC products and systems used in converting dry cooling systems to evaporative cooling systems. PowerCold's proprietary energy efficient products reduce power costs for air conditioning and refrigeration over air-cooled heat rejection.
The statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks, assumptions and uncertainties, including the inability to generate and secure the necessary product sale, or the lack of acceptance of the company’s products by its customers. In each case actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.
PowerCold Corporation
Frank Simola 215-266-6100
pwcl@powercold.com
http://www.powercold.com
or
Industrial
Mexicana
Mauricio Sada, 528-111-58-5300
info@industrialmexicana.com
www.industrialmexicana.com