ALGONA, IA / ACCESSWIRE / April 18, 2023 / American Power Group Corporation ("APG") (OTC PINK:APGI) today provides the following corporate update.
Chuck Coppa, APG's CEO/CFO stated, "While we have made significant progress over the past several years to solidify APG's financial position, we continue to focus our efforts on increasing market awareness and branding of our V6000 dual fuel vehicular solution. We believe this technology is potentially the most game-changing aspect of our business, especially from a decarbonization perspective. We are currently in discussions with several of the country's largest natural gas/renewable natural gas (RNG), biodiesel and renewable diesel dispensers regarding potential co-marketing efforts whereby they would market our cost-effective dual fuel solution in addition to dedicated natural gas solutions. Discussions are also underway with two potential new vehicular dealer/installers and we are actively seeking additional companies to join our dealer/installer network.
We've initiated our next round of EPA/CARB emissions testing to expand our 500+ industry-leading EPA engine family approvals. Given the lack of current natural gas/RNG options for fleets running heavy duty 15L trucks, we are focusing on newer engine platforms in the 2020 to 2022 range starting with Cummins ISX 15L high HP (450+) engine platform given it allows for a much greater market/application coverage. We are also considering a Mx13 PACCAR Class 8 high HP engine as our next new engine family platform, again given market demand.
Both our 2014 Freightliner CA125 Cascadia day cab Cummins ISX 15L (450 HP) diesel engine and 2015 Freightliner CC132 Coronado sleeper cab equipped with a 505 HP Detroit Diesel DD15 diesel engine demo trucks have been in high demand with potential customers/partners. Currently, both are being evaluated by a large west coast-based fleet operator who has embraced alternative fuels, including RNG and will be running long haul as well as short haul routes which should provide the maximum overall dual fuel experience."
Mr. Coppa, added, "Since October 2022, entities controlled by our Chairman, have provided us with $2.5 million of additional funding which was used to make several of our scheduled patent/technology purchase installment payments, pay off our remaining Iowa State Bank loan in January with the balance used for operations and inventory buildup to support our quotes. Our last $730,500 patent/technology installment payment is due in May and our Chairman has committed to provide those funds, if necessary, allowing us to complete the $5 million purchase of all our dual fuel patents and associated technology."
Matt Van Steenwyk, APG's Chairman noted, "I have agreed to lead this next $5 million round of strategic capital raising which is at a conversion price of $0.025 per share. I appreciate this represents a 32% premium to the trailing weighted average price of our stock since January 1, 2023, but personally feel this price is fair and reasonable at this time, underscoring my long-term views of APG and the potential for APG's dual fuel technology".
Mr. Coppa noted, "Unaudited revenue for the three and six months ended March 31, 2023, were approximately $0.35 million and $.62 million, respectively, as compared to approximately $0.31 million and $1.84 million of unaudited revenue for the three and six months ended March 31, 2022. The decrease in YTD revenue is attributable to the shipment of a $1.4 million follow-on order in October 2021 from our lead dealer/installer in the oil/gas fracking market. With oil prices on the rise, we are diligently working to close on over $4.5 million of outstanding conversion quotes spread over multiple stationary dealers/installers. In addition, we are working with one of our stationary customers on quoting $2.5 million+ of new conversion opportunities.
The significant problems experienced by the power generation community in Texas last year due to unusually cold weather only underscored the opportunity and necessity of growing microgrid capacity as a reliable source of readily available power, especially in crisis situations. APG's dual fuel solution not only can significantly reduce the overall operating cost of microgrid equipment but can also reduce the emission profile of the equipment through the use of up to 60% natural gas or RNG. We are currently working with a well-known microgrid equipment provider and operator who is evaluating the potential of utilizing our dual fuel solution on some of their microgrid engines. The microgrid market represents a multi-million dollar new opportunity for us which we are aggressively pursuing."
Mr. Coppa concluded, "I will be attending the Appalachian RNG Conference in Canonsburg, PA tomorrow, April 19, 2023 and highlighting how APG's V6000 dual fuel solution, displacing 50%-60% of diesel consumption with RNG from dairy manure, has been shown to produce an estimated Carbon Intensity ("CI") score of between a -104 to -145 gC02e/MJ and avoid between 500 to 610 metric tons of CO2 per year per vehicle."
Investor Relations Contact:
Chuck Coppa, CEO/CFO
American Power Group Corporation
About American Power Group Corporation (www.americanpowergroupinc.com)
American Power Group's subsidiary, American Power Group Inc., ("APG"), provides cost-effective alternative fueling solutions for diesel engines to significantly reduce methane criteria pollutants and help accelerate a low-carbon future. APG's Dual Fuel conversion technology is a unique patented hardware and software solution that enables high-horsepower diesel engines to safely displace up to 65% of diesel fuel with natural gas. Engines equipped with APG's Dual Fuel technology can use renewable natural gas (RNG), compressed natural gas (CNG), liquefied natural gas (LNG), captured flare-stack methane and conditioned well-head gas resulting in lower cost, lower carbon, and lower criteria pollutant emissions. Additionally, APG's Dual Fuel conversion technology remains fully compatible with eligible biodiesel blends and renewable diesel fuels further reducing a diesel engine's carbon footprint and provide users with a proven regulatory compliant technology to meet their Environmental, Social and Corporate Governance ("ESG") objectives.
Caution Regarding Forward-Looking Statements and Opinions
The matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to outstanding dual fuel conversion quotes for $4.5 million and our ability to turn these quotes into actual orders. These forward-looking statements and opinions are neither promises nor guarantees but involve risks and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events, and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, the fact that we may not be able to convert the $4.5 million of quotes into actual orders, the fact our dual fuel conversion business has lost money in prior fiscal years and the risk that we may require additional financing to grow our business, the fact that we rely on third parties to manufacture, distribute and install our products, we may encounter difficulties or delays in developing or introducing new products and keeping them on the market, we may encounter lack of product demand and market acceptance for current and future products, we may encounter adverse events or economic conditions, we operate in a competitive market and may experience pricing and other competitive pressures, we are dependent on governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the risk that we may not be able to protect our intellectual property rights, factors affecting the Company's future income and resulting ability to utilize its NOLs, the fact that our stock is thinly traded and our stock price may be volatile, and the fact that the exercise of stock options and warrants will cause dilution to our shareholders. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. Except as required by law, the Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE: American Power Group Corporation
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