8 April 2005- Canadian firm VRB Power Systems said Thursday it had completed the transaction with its now previous subsidiary Pinnacle VRB Ltd. (Pinnacle) to acquire outright, world-wide patents to the VRB technology except for the Australian based patents, which will remain with Pinnacle. The transaction simplifies the position for VRB, which can now develop its Vanadium Redox Battery Energy Storage System worldwide.
As part of the deal, VRB Power has sold all of its shares in Pinnacle for AUD $.01 per share on a pro-rata basis to existing Pinnacle shareholders. The effect of this share sale is that VRB Power in no longer a shareholder of Pinnacle and Pinnacle is no longer a subsidiary of VRB Power.
"The completion of this transaction represents a significant positive milestone in the Company's progress" states Vince Sorace, President of VRB Power Systems Inc. "VRB Power now directly owns and controls the patents related to the VRB technology. The acquisition of the patents will remove various restrictions, which have in the past prevented the Company from fully exploiting the technology.
"In addition to the Company now being able to directly manage the commercialization of the technology, significant cost savings will be achieved. Costs to VRB Power Systems associated with maintaining Pinnacle as a subsidiary, the annual African License fees and individual project license fees have now been eliminated," said Sorace.
VRB Power and Pinnacle will continue business dealings on an arms length commercial basis in efforts to capture sales opportunities within the Australian markets.
Based in Vancouver, B.C. Canada, VRB Power Systems is an electrochemical energy storage company that has commercialized the patented Vanadium Redox Battery Energy Storage System ("VRB-ESS") and has acquired the intellectual property rights and assets comprising the Regenesys Energy Storage System ("RGN-ESS") for the purpose of developing similar but larger scale flow battery systems.