As part of the deal, Reg Technologies, and its US distributor REGI US, are acquiring exclusive distribution rights for Canada and Europe for Anuvu fuel cells.
Reg Technologies and REGI US agree to pay a 5% royalty of the adjusted gross sales.
Conditions of the deal include the following:
REGI / Reg Technologies, Inc. will receive up to 1,000,000 warrants of Anuvu, based on 2 warrants issued for every $1.00 paid for the Distribution rights.
Anuvu agrees to give REGI first refusal to purchase Anuvu shares, in the event the additional shares are to be issued or purchased, for a period of six months.
Anuvu agrees to build a working fuel cell model prototype, for a vehicle, for demonstration purposes in Canada and Europe, on behalf of Reg Technologies, Inc. and REGI US.
Anuvu agrees to work on the Rand Cam projects, as required by Reg Technologies, Inc. / REGI US under a contract basis.
The companies have a common objective of developing a clean burning new source of power for vehicles, which are currently using gasoline driven piston engines. REGI is in the final phase of developing a light weight rotary engine that will run on any fuel, including cleaner burning fuels, such as hydrogen, propane and natural gas.—John Robertson, President of Reg Technologies
Invented by James McCann in 1983, the Rand Cam uses a disk-shaped rotor with two or more axial vanes mounted perpendicular to the direction of rotation. The vanes slide back and forth against cam surfaces to alternatively expand and contract the chamber volume.
Reg Technologies is exploring the use of the engine for generator and hybrid car applications, and is currently testing a Rand Cam diesel engine as the genset engine for a series hybrid electric car.
Anuvu, which is partnering with ZAP on a hydrogen fuel cell vehicle supposedly to be introduced sometime this year (earlier post), provides its fuel cell stacks to OEMs, governments, private R&D laboratories and academic institutions.
The standard Anuvu PEM fuel cell stacks range from 1.5 kW to 6 kW. The company has been delivering its cells for five years, and is seeking to become the leading volume supplier of fuel cell systems in the 1-kW to 100-kW range.
After ten years of R&D, Anuvu is focusing on the broad commercialization of its fuel cells by targeting existing stationary and specialized mobile markets, such as indoor forklift, marine, data and network backup power, remote communications facilities, critical fail-over systems and small urban vehicles.