iQ Power Licensing AG

Amalgamation of US green technology company into iQ Power / Annual Shareholders´ Meeting end of September - Seite 2

The expansion plans are the same as previously planned and announced at the extraordinary shareholders´ meeting. Additionally there will be an aggressive battery factory expansion program centered on the concept "Battery Factory of the Future" (BFF) of iQ Power for battery manufacturers and battery plants worldwide. The major item for the short-term future within this concept will be the purchase of majority interest in a small but modern and efficient European battery factory with good track record and positive balance sheet, which will showcase the next generation equipment and manufacturing methods of the BFF concept. Thereafter, further expansions are in the planning phase.

A valuation for Engenavis is now being performed and must be audited and approved by the IQPL auditors, Price Waterhouse Coopers, Zurich. The valuation of ENG is anticipated at an excess of USD 35 million. Post-amalgamation, iQ Power Licensing shareholders will have approximately 49% of the new company, compared to 40% planned previously, and ENG will be merged at a value of around 51% of the new company, which is calculated at EUR 0,07 per share as being announced.

Shareholders of IQPL stock who signed share exchange agreements in late April, will be notified of cancellation, at the latest, following the upcoming ordinary shareholders' meeting.

The USD 14 million financing, as well as the valuation of Engenavis, are subject to a detailed examination, known as Due Diligence. Following satisfactory conclusion of the Due Diligence and shareholder approval, the amalgamation and financing will be executed. In order to understrike the sincerity of the agreement, Engenavis has financed, in advance, all costs for the upcoming shareholder´s meeting and legal costs for the transaction.

Following the transaction, the new company iQ Power Technologies AG (iQPT) will apply to be listed as soon as possible in 2018 on Regulated Market of the Berlin Stock Exchange and Frankfurt XETRA. The listing on the NASDAQ exchange in the USA is planned for 2019 or 2020. A possible listing in Singapore is being considered.

In order to have an optimal number of shares in the new company, iQ Power Technologies AG, a reverse split of 23:1 is planned. To accomplish the reverse split, it is necessary to move the company headquarters to the Canton of Zurich. This measure is subject to the final approval of the Federal Commercial Register in Bern, which is expected prior to the Annual Shareholders' Meeting. After the reverse split, there will be approximately 30 million shares outstanding with an anticipated value of EUR 3,00.