Far Resources Acquires 26% of BattMat USA, Securing Increased and Guaranteed Rights to Any Future Revenues from Battery Technology Incubator.
VANCOUVER, British Columbia, Feb. 19, 2020 (GLOBE NEWSWIRE) -- Far Resources Ltd (CSE:FAT) (FSE:F0R) (OTC:FRRSF) and partners BattMat Technologies (BM) and Electric Blue Power (EBP) are excited to
announce the formation of BattMat USA Corp (BMUSA), in which Far now has a 26.1% shareholding. BMUSA is a Delaware corporation that will advance and commercialize technologies that arise from the
Far/BM/EBP joint venture, commencing initially with the VAB Controller, the first technology developed by Lee Wheelbarger, EBP’s Chief Technology Officer. As reported, the VAB Controller — a system
for managing batteries and other vehicle functions in cold and other challenging conditions, as well as management of related vehicle data — is currently entering pre-commercial testing. The
majority of funds contributed to date by Far will be used for testing prototypes on a variety of vehicle types in various weather and use case scenarios (see news dated January 22, 2020 and
January 30, 2020).
Murray Seitz, Far’s Director of Strategy, explains: “We have been working closely with BattMat and Electric Blue Power and their principals for several months in determining the optimal business structure to develop the technologies funded by Far to commercialization. All three parties have agreed to the formation of BMUSA as the appropriate vehicle. With early commercial success of the VAB Controller, the need for future funding may be decreased, while still allowing Far, through its ownership of BMUSA, to receive the benefits of future products and projects based on its current ownership stake, without necessitating its funding of a given future technology (subject to possible dilution in favour of third party funding).”
Through its investment of US$77,500, which has been used principally towards development of the VAB Controller, Far’s stake in BMUSA has been increased to 26.1%. Far has the first right to invest an additional $121,500 to thereby increase its ownership and — and hence its share of all future revenues — to approximately 34%. Far will continue to have the first right to provide, or to arrange through third parties for, funding for additional technologies so as to further increase its BMUSA ownership stake. Far, BM and EBP will own positions in BMUSA, which will hold licenses from EBP for the technologies financed through BMUSA. The terms of this agreement will supersede the agreement announced by Far on July 23, 2019.