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Report on New Events at Licensee iQ Power Asia

  • New machinery installed at Korean factory to further improve quality of plate manufacturing for future requirements
  • Increase of output capacity at Korean Licensee
  • Super Heavy Duty Large Truck batteries with iQ technology to be introduced in Q3, 2017

Zug, Switzerland, 30 March 2017 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces new developments at its South Korean Licensee iQ Power Asia.

In March a new pasting machine made in the USA by world’s the leading supplier of battery equipment, Wirtz USA, was successfully installed at the Korean facility. Discover Energy provided the funds for the new machine, underscoring their commitment to increase productivity, quality and capacity at the Korean factory.

Through this investment as well as other measures the output capacity of the licensee factory of iQ Power Asia achieves a further substantially increase. Following investments in the assembly area, the increase in capacity will make a significant contribution not only to shortening lead-times and increasing customer satisfaction, but will also contribute to making the South Korean factory economically stronger.

The further measures include activities which will allow the manufacture of high capacity super heavy duty truck batteries. The first super heavy duty truck batteries with iQ technology will be introduced in Q3 this year.

Using the iQ Power technology for heavy duty batteries with high capacity has long been a goal of iQ Power Licensing. Due to intensive use, heavy duty truck batteries have much shorter lifetimes than car batteries. The large batteries are a multiple times more expensive than car batteries and the cost of sudden battery failure is much higher. Therefore, the life-extending iQ Power technology is a perfect solution for this market.

 

About the iQ Power Technology

Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. It is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery by passive mixing elements ensures uniform acid density for higher sustained performance throughout the entire life of the battery, thus avoiding early loss of capacity (Ah) as usual with ordinary batteries. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010. – More under: www.iqpower.com/en

Over 20 more countries award iQ Power patent for its technology of passive electrolyte mixing in flooded automotive batteries

  • Patent protection rights for the new generation IQP-2.0 in important EU countries
  • Additional protection also in USA and Canada

Zug, Switzerland, 08 March 2017 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces the granting of patents for the company`s technology of passive electrolyte mixing in flooded automotive batteries in more than 20 other countries. The patents primarily concern the new generation IQP-2.0, which is based on the predecessor version IQP-1.

The newly issued IQP 2.0 patents are granted to 18 European countries, including major markets such as Germany, France, the UK, Italy, Spain and Turkey.

Furthermore, iQ Power Licensing AG has been granted additional new patent protection rights for its predecessor iQP-1.X in the states of Canada, USA and Germany as a supplement to the existing protective rights.

The additional patents granted to the patents already granted in these countries of the predecessor version IQP-1 strengthen the patent protection and the patent arsenal of the company.

 

About the iQ Power Technology

Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

iQ Power Licensing AG reports on New Events

  • CEO purchases further EUR 50.000 of Convertible Bonds
  • Progress at Korean Licensee iQ Power Asia in Plan
  • General Market Trends continue to favor iQ Power technology

 

iQ Power Licensing AG, a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces several important developments of interest to investors.

The licensee factory of iQ Power Asia in South Korea continues to make progress in expanding its capacity to meet the large demand from its key customer. The growing increase in capacity will make a significant contribution not only to shortening lead times and increasing customer satisfaction, but will also contribute to making the South Korean factory economically strong.

Underscoring the overall positive developments, the CEO of iQ Power Licensing, Bob Sullivan, announced that he has purchased more convertible bonds of the company from a private investor. CEO Sullivan purchased bonds of iQ Power Licensing AG worth EUR 50.000 at a premium to nominal value. As a result, the CEO has recently acquired bonds worth a total of EUR 150.000.

Bob Sullivan stated, “Despite some recent negative share price movements, which are not explainable, the company is moving in a continuously positive direction. With my further investment I underline my faith in the good future prospects for the company. The current share price does not, in my personal opinion, reflect the true value of the company.”

General market trends continue to be in favor of the iQ Power technology. Well-researched statements from industry professionals and automobile manufacturers made at the recent lead battery conference in Germany show that well over 90% of the growing new vehicle production will remain using 12V lead acid batteries throughout the next decade and beyond with advanced lead acid batteries grabbing major market share. The majority of engines will be start-stop and similar technologies, requiring high performance batteries with long cycle-life.

iQ Power Licensing among the TOP 3 for the GreenTec Awards 2017

  • The GreenTec Awards is Europe’s biggest and most important prize for innovations in the field of environmental protection and sustainability.
  • Innovation of iQ Power Licensing is among the TOP 3 according to the expert jury voting (category ‘Mobility’).
  • Innovative electrolyte mixing in car batteries has great advantages for consumers and the environment through double product life and low CO2 footprint.

iQ Power Licensing AG is among the TOP 3 candidates for the GreenTec Awards 2017 in the category ‘Mobility’. The final winner in each of the eleven categories will be voted by the international jury during the coming weeks.

The GreenTec Awards is the biggest and most important prize Europe wide for innovations in the field of environmental protection and sustainability. Sponsorship of the category ‘Mobility’ is taken over by the German Association of the Automotive Industry, VDA. The final award ceremony will take place in Berlin on May 12, 2017, as a tenth anniversary gala, in the presence of 600 guests from the worlds of business, politics, show and press.

Advantages of the iQ Power innovation for consumers and the environment
The innovation of iQ Power Licensing, the passive electrolyte mixing for starter batteries, offers considerable advantages, both for the consumer and for the environment and sustainability. Car batteries with integrated electrolyte mixing achieve a double life time and a double the number of cycle counts.

The importance of the innovation on sustainability and CO2 emissions is obvious in the case of a product with double life: The CO2 footprint is only half compared to conventional identical products over the product life span. There are also fewer raw materials and recycling materials in circulation.

The innovation is based on simple non-moving (passive) plastic components in the battery chambers. Coupled with the forces from the vehicle dynamics when driving, these components provide automatic and efficient 360-degree circulation and full electrolyte mixing in the battery. The advantages: No loss of capacity (Ah) due to harmful acid stratification as usual with normal batteries, always full function of the electrochemistry by a homogeneous electrolyte, minimal costs with maximum advantages for consumers and the environment.

GreenTec Awards
The GreenTec Award (http://www.greentec-awards.com) is the most important environmental award worldwide. The prestigious prize is awarded annually to outstanding innovations in the field of environmental protection and sustainability in over ten different categories. The final award ceremony will take place in Berlin on May 12, 2017, as a tenth anniversary gala.

 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

iQ Power Licensing Status Report with New Events

  • First OEM vehicles equipped with battery technology of iQ Power Licensing
  • Significant step towards iQ Power Asia exiting Financial Restructuring ahead-of-schedule
  • Discover Energy Group subscribes to bond as prelude to share swap between IQPLAG and IQPA
  • First half results in line with expectations

Zug, Switzerland, 12 January 2017 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces several important events of interest to investors.

 

Summary:
The first vehicles by an automotive manufacturer using a battery containing iQ Power technology, a premium class SUV and a pick-up truck, are now being produced in series in Brazil. The battery is an EFB type battery for extra-long cycle life, because the vehicle uses an engine with start-stop technology. Use of the iQ Power Technology more than doubles the cycle life as per test results at Licensee, Moura Baterias. Contractual obligations do not allow details such as manufacturer and model name to be publicized.

In South Korea, the Court has approved the application by Discover Energy Group (DEG), Canada, which will lead to DEG obtaining majority control of iQ Power Asia Inc. (IQPA), Gwangju, Rep. of Korea. It is anticipated that, following fulfillment of all requirements, the court will exit as administrator after only one year rather than the seven years earlier than planned.

The Board of Directors of iQ Power Licensing AG (IQPLAG) has approved a subscription by Discover Energy Group, Canada (DEG), to a mandatory convertible loan of iQPLAG equaling EUR 2,5 million. The terms of the bond are similar to the existing convertible bond, ISIN: DE000A1GXE20, with the exception that DEG is obligated to convert into shares of IQPLAG at a future time. Further, the Board of Directors of iQ Power Licensing AG (IQPLAG) has approved a subscription to a non-mandatory convertible loan to DEG equaling EUR 2,5 million. Following final negotiations regarding valuation, the loan may be converted into additional shares in IQPA or IQPA’s DEG controlled holding company. Due to the financial restructuring, the current shareholding of iQ Power Licensing AG (IQPLAG) has been greatly reduced through court mandated capital reductions for all shareholders.

The half-year results were in line with expectations but were negatively affected by some extraordinary expenses. The net revenue for the period was more than double the previous period, CHF 344k (vs. 1st 6 months of 2015: CHF 115k). The loss from on-going operations was around CHF 550k, which given the sales revenue and normal fixed costs, are as expected. The results for income after tax improved, with a loss of CHF 1.047k versus a loss after tax was CHF 1.377k in the 1st 6 months of 2015.

 

OEM Battery debut - Status
In Brazil the first vehicles are produced in series by an OEM using batteries with technology of iQ Power Licensing being incorporated. The products manufactured by Moura are EFB batteries (Enhanced Flooded Batteries) with integrated 360-degree electrolyte circulation, a patented technology of iQ Power Licensing AG. The new products are bound for automotive manufacturers (OEM) on the Brazilian market for the use of start-stop engines. The batteries` main characteristics is a high cycle stability.

Moura´s new start-stop EFB batteries with electrolyte mixing go into the top range of two new automobile models which have fuel saving start-stop function.

Moura´s start-stop batteries with mixing technology are targeted on the OEM market.

The goal of Moura is to offer automotive manufacturers (OEMs) on the South American continent robust flooded lead/acid batteries with high cycle performance as starter batteries for fuel-saving start-stop applications. Flooded batteries are regarded as particularly robust products. Combined with an integrated electrolyte circulation, flooded batteries are durable even at high ambient temperatures since the mixing technology of iQ Power Licensing avoids the typical acid stratification which occurs in conventional flooded batteries. Acid stratification causes not only lack in capacity (Ah) performance but also sulfation and premature internal corrosion influenced also by high ambient temperature. The advantage of the acid mixing device is a high cycle stability of the lead/acid battery.

Moura`s newly developed start-stop battery products combine the advantages of two technologies: the special EFB (Enhanced Flooded Battery) technology of Moura plus the electrolyte mixing of iQ Power Licensing using passive mixing elements inside the product. New regulatory requirements in Brazil with regards to lower CO2 emissions of new vehicles require fuel-saving measures such as start-stop engines by the automotive manufacturers also in Brazil. Here, EFB batteries with electrolyte mixing offer the OEM a cost-effective alternative to the more expensive, complex and temperature sensitive AGM batteries (Absorbent Glass Mat), especially for the Brazilian market of compact class vehicles and in the South Americas.

The privately held company Acumuladores Moura S.A. is the largest battery manufacturer in South America, with six large battery factories in Brazil and Argentina and producing over 7,5 million batteries per year. Moura has more than 70 commercial distribution centers and is the largest supplier to OEMs in South America, with a market share of more than 50% of the OEM market in South America. Customers of Moura include the world’s biggest auto manufacturers such as General Motors, Volkswagen, Ford, Iveco, and Fiat-Chrysler among others. Moura also produces batteries for mobile applications (traction), for marine purposes as well as for telecommunications and solar. The company has won many excellence awards.

 

IQ Power Asia Inc. – Status
In 2016, DEG funded many improvements at the factory, including additional equipment for the current production. The demand from North America has been very good and has required a more limited expansion in other markets, such as Europe and Asia. Limited amounts of batteries have been sourced from the Bangladesh factory for certain Asian customers. Further increases to production capacity of iQ Power Asia through a 2nd assembly line are now being intensively discussed.

Several new products are now being developed for release in Q2, 2017. These include high cycle batteries for the recreational vehicle market, new battery sizes for special markets such as Australia and later in 2017, a new line of super heavy duty, vibration resistant batteries for the construction industry and off-road heavy vehicles.

 

Exchange of Convertible Loans – Status
The exchange of loans between DEG and IQPLAG underscores DEG’s confidence in the technology of IQPLAG. At the same time, the exchange also shows the commitment of IQPLAG to support the key Licensee, DEG, and the newest member of the DEG Group, IQPA.

The conversion of the DEG loan into IQPLAG shares is anticipated for the first of half of 2017. The implicit share increase also was key to securing a solid balance sheet for IQPLAG for year-end 2016 following the reduction of the shareholding of IQPLAG in IQPA.

 

• Financial Results
The half-year results were in line with expectations but were negatively affected by some extraordinary expenses. The net revenue for the period was CHF 344k (vs. 1st 6 months of 2015: CHF 115k). The increase was due to the increased sales of the strategic licensee, DEG. The sales increased month-to-month during the first 6 months as customers were able to end previous purchase commitments in order to purchase from iQ Power Asia.

The net revenues are a combination of sales margin from the plastic mixing parts and license income. Since the cost of plastic material was deducted from the net revenue figure, the gross sales were higher. Due to contractual confidentiality commitments, the revenue per licensee may not be disclosed.

The loss after tax was reduced to CHF 1.047k versus a loss after tax was CHF 1.377k in the 1st 6 months of 2015. The loss from on-going operations was around CHF 550k, which given the sales revenue and normal fixed costs, are as expected. Due to several non-operational effects this loss was higher than would normally be anticipated. These negative profit events included a not anticipated expense of CHF 180k from a prior period due to currency loss. In addition, higher than anticipated patent costs, which can not be capitalized, caused a further one-time expense of over CHF 100k. Finally financial expenses net, mainly interest on the convertible bond, added CHF 122k to the losses.

The total assets of the company were largely unchanged at CHF 5,06 million. The equity as a percent of total assets remained largely unchanged at 35% (versus 30.Dec.2015: 38%). The cash balance of the company was adequate at CHF 358k.

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

New main distributor in Bahrain for ECO batteries from iQ Power

  • Strong re-ordering of ECO batteries by new partner

iQ Power Licensing AG, a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces a main master distributor for the Gulf State of Bahrain: the company Abdulla Yousif Fakhro & Sons. The company is another master distribution partner, which sell battery products with iQ-Power technology in their respective countries of the Gulf region.

The company Fakhro specializes, among other things, in the trade of vehicle parts and industrial products and for decades represents many internationally renowned brands. The car parts are sold directly to commercial customers as well as to end users via a dealer network of around 300 partners throughout the country. The new ECO batteries with electrolyte mixing have been well received in the market. Fakhro has already placed larger re-orders of the product.

iQ Power Licensing among the TOP 10 for the GreenTec Awards 2017

  • The GreenTec Awards is the biggest and most important prize worldwide for innovations in the field of environmental protection and sustainability
  • iQ Power Licensing in the category Mobility is on the short list of the top ten according to the expert jury voting
  • Innovative electrolyte mixing in car batteries with great advantages for consumers and the environment through double product life and low CO2 footprint

iQ Power Licensing AG is among the TOP 10 candidates for the GreenTec Awards 2017 in the category Mobility. The GreenTec Awards is the biggest and most important prize worldwide for innovations in the field of environmental protection and sustainability. Sponsorship of the category “Mobility” is taken over by the German Association of the Automotive Industry, VDA.

The expert jury voting is now followed by a public online voting. Through the website of GreenTec Awards ( http://abstimmung.greentec-awards.com ), everyone can cast their vote for the best project in the respective categories from their point of view. Public voting ends on January 06, 2016. The respective TOP 3 in each category will be selected at the final jury meeting at the end of February 2017. The big gala event will take place on May 12, 2017 in Berlin, where all finalists will be honored.

Advantages of the iQ Power innovation for consumers and the environment
The innovation of iQ Power Licensing, the passive electrolyte mixing for starter batteries, offers considerable advantages, both for the consumer and for the environment and sustainability: Car batteries with integrated electrolyte mixing achieve a double life time and a double the number of cycle counts. The mixing technology is based on non-moving (passive) simple plastic components in the battery. Coupled with the forces from the vehicle dynamics when driving, these components provide automatic and efficient 360 degree circulation and a complete electrolyte mixing in the battery. The advantages: No loss of capacity (Ah) due to harmful acid stratification as usual with normal batteries, always full function of the electrochemistry by a homogeneous electrolyte, minimal costs with maximum advantages for consumers and the environment.

The importance of the innovation on sustainability and CO2 emissions is obvious in the case of a product with double life: The CO2 footprint is only half as large as in the case of conventional identical products over the product life span. There are also fewer raw materials and recycling materials in circulation. Based on a world-wide production of around 390 million starter batteries per year for 4-wheeled vehicles, this results in a saving of around 9.6 million tonnes of CO2 per year. Moreover, the quantity of lead in circulation could be permanently reduced by around two million tonnes per year.

In addition there is another 5.4 million tons of CO2 savings through start stop applications with respective products annualy. All together a potential of about 15 million tons of less CO2 emissions per year.

GreenTec Awards
The GreenTec Award ( http://www.greentec-awards.com ) is the most important environmental award worldwide. The prestigious prize is awarded annually to outstanding innovations in the field of environmental protection and sustainability in over ten different categories. The final award ceremony will take place in Berlin on May 12, 2017, as a tenth anniversary gala, in front of about a thousand guests from the worlds of business, politics, show and press.

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

iQ Power Licensing: Renewal of existing Convertible Bond

  • Successful negotiation with major subscriber assures necessary majority of creditors for renewal of existing Convertile Bond
  • Renewal of the current bond for 5 years subject to creditor approval
  • CEO of iQ Power Licensing AG will invest EUR 100.000 in Convertible Bonds following renewal

iQ Power Licensing AG reports on the intention to renew the convertible bond ending 31.December 2016.

The renewal of the convertible bond will be for a further 5 years. The renewal will give the company further flexibility during the build up phase of license sales and relieve the company from the need of paying off the outstanding debt of EUR 1.2 million at the end of the year. With the renewal, no capital increase will be required for financing.

The CEO of iQ Power Licensing AG, Bob Sullivan, has decided to personally subscribe for 20 convertible bonds at EUR 5.000 per bond, totaling EUR 100.000, and thus showing his commitment to the company. The reason for the purchase was the excellent chance for long-term gains given the improving prospects for the company iQ Power Licensing AG after the reorganization of the Korean partner and licensee iQ Power Asia Inc.

The approval requires a 2/3 majority of current bondholders. A successful negotiation with the major institutional bondholder and other long-term bondholders should assure the passage of the company’s board resolution. The major institutional bondholder holds about 50% of the outstanding bonds. This bondholder required further concessions in order to agree. The major concession is that the company’s patents will be pledged as subordinate security for the bonds. The pledge is limited to the amount of the bonds and would only be triggered in case of default. Further, a small reduction in the strike price of 16% was agreed.

 

Electric Vehicles: Hype versus Reality

Some key messages on electric mobility and Lithium batteries at the 15th international battery conference held 13-16 September 2016 at Malta:

 

Facts
Electric Vehicle (EV) ownership will grow in the future. EV, if powered by environmentally friendly energy sources (solar and wind), can contribute to the reduction of CO2 emissions.

The EV will probably be powered by a Lithium based battery. The demand for lithium and lithium batteries will grow significantly in the future and represent a huge business opportunity.

These facts are undisputed. However, this is only part of the total picture.

 

Total Demand
The world population of vehicles with combustion engine today is about 1.1 billion units. World production of new cars with combustion engine sums up to about 89 million annually while the annual net growth of the population is about 2.6% p.a.

World production of lead acid car batteries is about 390 million units per year with a current continuous growth rate of about 3,8% p.a.

The car fleet in Germany is over 50 million vehicles (2015) and growing at about 1 million vehicles per year. The goal of having 1 million EV in the German fleet by 2020 seems optimistic to many experts.

Total annual worldwide production of EV is set to be about 6 million in 2025 according to industry experts. This would represent about 8% or less of total vehicle production at that time.

The Chinese are the most aggressive proponents of EV and hope to have 3 million vehicles produced annually by 2025. This will represent less than 15% of Chinese vehicle production.

China controls the largest reserves of lithium, including those in Australia and is aggressively acquiring all major sources of supply in South America.

The technological advantage enjoyed by German car manufacturers for internal combustion engine vehicles does not exist for EV.

 

Environment
Lead based batteries are 99% recycled. Less than 5% of Lithium batteries are recycled and this is mainly cobalt and other semi-precious metals, not Lithium. Lithium cannot be economically recovered and must be buried in hazardous waste landfills.

Total energy costs to make a battery with equivalent storage capacity are 3 times higher for Lithium as for Lead.

The total cost of ownership for a battery with equivalent storage capacity is 5 times higher for Lithium as for Lead.

The electricity for recharging of EV will be dominated by coal and nuclear power plants for the next 20 years. A large surge in use of lithium batteries will create the need for a large increase in hazardous waste storage sites.

 

In summary
The dominant technology for transportation for at least the next 40 years remains the internal combustion engine. Due to robustness, cost and restricted availability of lithium the lead acid battery will remain first choice when it comes to starter batteries.

A large proportion of vehicles runs in emerging countries and third countries. For a large part of the world markets even in the very long term EVs are not an option because they do not meet the specific circumstances of those countries and funds for the erection of an EV infrastructure will not be available.
It will at least take 25 to 40 years until the production of EVs and conventional cars will reach parity (50/50) with about 45 million to 45 million units per annum or more, if ever. And not to forget: There is still the huge stock of vehicles with combustion engine in the market.

Just because EV has lithium batteries, it does not mean that lithium is an environmentally friendly material. New and better technologies, including start-stop engines will have a greater impact on reducing CO2 emissions than EV for the next 20 years.

Capacity Increase in Korean Factory of iQ Power Asia Completed on Time

  • Final equipment for capacity expansion installed on time
  • 75% capacity increase as of October 2016
  • Order book growing rapidly

iQ Power Licensing AG reports on a further significant production achievements in the factory of iQ Power Asia in South Korea:

iQ Power Licensing announces the completion of equipment installation at the factory, iQ Power Asia Inc., Gwangju, Republic of Korea. The expansion, which was announced further this year and which was scheduled to go into service in September, comprises several important new equipment additions to the current production line as well as the addition of a large number of storage racks to accommodate increased inventory of parts.

The additional equipment to the assembly line and improvements to the plate drying chambers will allow the factory to increase from 40.000 batteries per month to over 75.000 batteries per month.

The expansion is the first of two expansions planned for the near future. More important will be the addition of a second complete production line for large car and commercial vehicle truck batteries, which will allow for a further doubling of revenues.

The second line will allow greater efficiencies due less need to changeover the line for different sizes. The entire cost of the equipment of both expansions is being paid for solely by Discover Energy, the key licensee of iQ Power Licensing AG.

The factory is under great time pressure to fully utilize the extra capacity as the order book is full with orders for the cold season in North America. October will be a record month for production and further increases are anticipated in the following months as the workers become familiar with the equipment.

iQ Power ECO batteries to be sold in Bridgestone outlets in the UAE

  • Sales Kick-off for Al Masaood Group, the authorized Bridgestone Distributor in The Emirate of Abu Dhabi, UAE
  • Al Masaood to takeover sales of the ECO brand from Omeir Bin Youssef Group
  • New long term fleet test to be performed in taxi application

iQ Power Licensing AG reports on a further significant sales achievement in the Middle East. iQ Power announces the start of sales of their ECO brand batteries with incorporated innovative electrolyte mixing technology in Al-Masaood Bridgestone Autocare outlets in the United Arab Emirates (UAE). Al-Masaood Tyres & Accessories Division, a division of the Al-Masaood Group (AMG) headquartered in Abu Dhabi, will be the key distributor for iQ Power ECO batteries in the United Arab Emirates. AMG has Bridgestone retail outlets and service centers in all key locations in The Emirate of Abu Dhabi, Al Ain & Western Region and has established wholesale & Retail customers in Abu Dhabi, Dubai and the Northern Emirates for Eco Series batteries.

AMG is a multi-billion dollar trading and service conglomerate with over 7'000 employees from 40 countries. The automotive division is the long-time exclusive certified dealer in the UAE for Nissan, Renault and Infiniti cars as well as Harley Davidson and Ducati motorbikes. A Bridgestone tire is one of the most popular brands in the UAE and AMG has one of the most extensive networks of retail outlets and Tire Service Centers in the UAE.

Particularly remarkable is the fact that iQ Power ECO will be the premium battery brand sold at the Bridgestone retail outlets and service centers operated by AMG, and will replace the popular Brand of Batteries which AMG used to sell through their outlets.

AMG became attracted to the iQ Power ECO brand battery due to the confidence and faith in the impressive MIXTECH technology of iQ Power premium batteries. After Omeir bin Youssef approached AMG to distribute & sell Eco Series batteries through their Al-Masaood Bridgestone Autocare outlets, AMG seized the opportunity to obtain the Master Distributor rights to sell the ECO brand. The two esteemed groups mutually agreed that AMG would take over the business as their infrastructure, experience and longer tradition in automotive parts, were better suited to quickly grow sales volume for the product. Also, AMG has an extensive history in supplying vehicles and parts to the UAE government and military, ECO Series batteries with MIXTECH are a perfect fit for these fleets as they increase productivity gains and reduce costs.

AMG technicians thoroughly tested the ECO batteries. All standards were met or exceeded by the batteries, which were delivered from the Bangladesh factory. Recently AMG has started ordering from the Korean factory, iQ Power Asia.

AMG is now also starting a long-term field test with their taxi fleet customers. Batteries running in taxi applications and under hot climate environments usually suffer from a short life span, generally less than 6-8 months in the UAE. The test, which will take place until late 2017, will compare the ECO versus the ECO Premium battery performance as well as performance against the competition. This test follows existing taxi pilots started by OBY, in which batteries with MIXTECH have lasted around 18 months, over double the existing average with competitor product.

In addition to the advantages in taxi applications, batteries with iQ Power electrolyte mixing technology are especially good for hot weather climates in which the acid stratification in ordinary batteries accelerates corrosion and sulfation of the lead plates. Batteries with the outstanding iQ Power technology stand out by double the cycle life compared with same batteries without the iQ Power technology.

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

Kuwait's Al Sayer Group Launches iQ Power ECO Replacement Batteries Powered by Award Winning Technology for Higher Reliability

  • Sales Kick-off for Al Masaood Group, the authorized Bridgestone Distributor in The Emirate of Abu Dhabi, UAE
  • Al Masaood to takeover sales of the ECO brand from Omeir Bin Youssef Group
  • New long term fleet test to be performed in taxi application

iQ Power Licensing AG reports on a further significant sales achievement in the Middle East. iQ Power announces the start of sales of their ECO brand batteries with incorporated innovative electrolyte mixing technology in Al-Masaood Bridgestone Autocare outlets in the United Arab Emirates (UAE). Al-Masaood Tyres & Accessories Division, a division of the Al-Masaood Group (AMG) headquartered in Abu Dhabi, will be the key distributor for iQ Power ECO batteries in the United Arab Emirates. AMG has Bridgestone retail outlets and service centers in all key locations in The Emirate of Abu Dhabi, Al Ain & Western Region and has established wholesale & Retail customers in Abu Dhabi, Dubai and the Northern Emirates for Eco Series batteries.

AMG is a multi-billion dollar trading and service conglomerate with over 7'000 employees from 40 countries. The automotive division is the long-time exclusive certified dealer in the UAE for Nissan, Renault and Infiniti cars as well as Harley Davidson and Ducati motorbikes. A Bridgestone tire is one of the most popular brands in the UAE and AMG has one of the most extensive networks of retail outlets and Tire Service Centers in the UAE.

Particularly remarkable is the fact that iQ Power ECO will be the premium battery brand sold at the Bridgestone retail outlets and service centers operated by AMG, and will replace the popular Brand of Batteries which AMG used to sell through their outlets.

AMG became attracted to the iQ Power ECO brand battery due to the confidence and faith in the impressive MIXTECH technology of iQ Power premium batteries. After Omeir bin Youssef approached AMG to distribute & sell Eco Series batteries through their Al-Masaood Bridgestone Autocare outlets, AMG seized the opportunity to obtain the Master Distributor rights to sell the ECO brand. The two esteemed groups mutually agreed that AMG would take over the business as their infrastructure, experience and longer tradition in automotive parts, were better suited to quickly grow sales volume for the product. Also, AMG has an extensive history in supplying vehicles and parts to the UAE government and military, ECO Series batteries with MIXTECH are a perfect fit for these fleets as they increase productivity gains and reduce costs.

AMG technicians thoroughly tested the ECO batteries. All standards were met or exceeded by the batteries, which were delivered from the Bangladesh factory. Recently AMG has started ordering from the Korean factory, iQ Power Asia.

AMG is now also starting a long-term field test with their taxi fleet customers. Batteries running in taxi applications and under hot climate environments usually suffer from a short life span, generally less than 6-8 months in the UAE. The test, which will take place until late 2017, will compare the ECO versus the ECO Premium battery performance as well as performance against the competition. This test follows existing taxi pilots started by OBY, in which batteries with MIXTECH have lasted around 18 months, over double the existing average with competitor product.

In addition to the advantages in taxi applications, batteries with iQ Power electrolyte mixing technology are especially good for hot weather climates in which the acid stratification in ordinary batteries accelerates corrosion and sulfation of the lead plates. Batteries with the outstanding iQ Power technology stand out by double the cycle life compared with same batteries without the iQ Power technology.

 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

iQ Power Licensing signs New Distributorship for Iran

  • Iranian partner is major company in non-ferrous metals and an automobile industry supplier
  • Installation of a nationwide dealer network throughout Iran

Zug, Switzerland / Gwangju, Republic of Korea, 22 July 2016 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, reports on a major addition to the distribution network of companies selling and promoting batteries with iQ Power technology.

iQ Power Licensing AG has signed an agreement with EBTEKAR MEHR APADANA GROUP (EMACO), Address No. 807, 8th floor, Shahab Tower, Vali-e-Asr Ave., Tehran, Iran, which is an experienced manufacturer and marketer of various non-ferrous metal products with a long tradition and experience in Iran and other countries. EMACO is one of the largest dealers for lead and lead recycled products in Iran. Currently EMACO supplies the national automobile manufacturers with parts produced at their copper fabrication plant.

EMACO has been granted an exclusive master distributorship in Iran for batteries using iQ Power technology. EMACO started right away with the establishment of a nationwide dealer network in order to sell batteries with iQ Power technology and collect used batteries. In addition, EMACO plans to market the batteries with iQ Power technology to their OEM customers.

The market for batteries in Iran is around eleven million per annum. The market is growing at around five to six per cent annually and with the lifting of trade sanctions may reach up to ten per cent growth short-term. There are talks taking place between many top automobile manufacturers and the Iranian government to start or expand production in the country. The starter battery market is divided between OEM automotive manufacturers with over two million units p.a. and aftermarket sales of about nine million units per year. Around 40 per cent of all batteries are imported, although high tariffs exists. Korean batteries are the number one imported battery in Iran. One of the major automobile manufacturers in Iran is the Korean company KIA which belongs to the Korean car maker Hyundai.

Bob Sullivan, CEO of iQ Power Licensing AG, stated: “We had talks with many different interested parties, but we chose to work with EMACO due to their marketing prowess, financial strength and deep connections not only in Iran but also in neighboring countries, especially in Islamic countries of the Ex-Soviet Union. Our agreement requires a large commitment of resources for marketing with aggressive targets to be achieved within the next twelve months.”

 

About the iQ Power Technology:
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

iQ Power progress report on sales and production capacity

  • First mixing batteries sent to Discover Energy’s German and Italian sales partners.
  • Batteries with iQ Power technology to be showcased at major Frankfurt Trade Fair Automechanika in September this year.
  • North American order increase following sales partners’ meeting with Discover Energy in Canada.
  • New sales partners in Bahrain and Dominican Republic.
  • Investments approved for capacity expansion in South Korean factory.

Zug, Switzerland 13 June 2016 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces further progress in sales and marketing for the batteries produced by the key licensee, iQ Power Asia.

 

Europe
Following the completion of the passenger car product program, the first batteries with iQ Power mixing technology have just been shipped to Discover Energy´s German sales partner, AIM Batterie Vertriebs GmbH in Fürth. AIM is a major battery distributor in the German market and beyond. Although the AIM Group, with the brand Triathlon, is best known for the industrial battery market, they use their large distribution network also to distribute car batteries. The active marketing phase will commence in the late summer/early fall. In addition, the first shipment to Discover’s sales partner in Italy is scheduled to ship this month. These shipments mark the start of a major product launch for Discover Energy´s “Mixtech” brand in Europe. Discover Energy Corporation from Vancouver, Canada, is the key strategic partner of iQ Power Licensing AG.

In order to support the launch in Europe of the Mixtech brand using iQ Power technology, Discover Energy and IQ Power Licensing AG will showcase batteries and mixing technology at the prestigious Automechanika Frankfurt Trade Fair to be held from September 13 to September 17. The Automechanika is the largest trade fair for auto parts in the world and attracts visitors from all continents.

 

Other regions
Order volumes have increased markedly following a strategy meeting of Discover’s key sales partners, in which Bob Sullivan, CEO of iQ Power Licensing AG, made a presentation and answered questions about the iQ Power technology and the progress at the factory of iQ Power Asia, Korea. The Discover Energy Factory Warehouses and distribution partners represented many different regions and are among the largest battery distributors in North and South America.

One of the largest battery retailer in the Dominican Republic has just made the Mixtech battery, with iQ Power technology inside, its number one premium brand to promote to customers, replacing well-known market leaders as the top premium brand. The retailer made the switch based on the long-lasting performance experienced with a shipment of batteries from iQ Power Asia in 2011. The retailer reported about batteries produced in early 2011 in Korea and still running after five years in early 2016. Normally batteries last only one to two years due to the hot climate conditions and constant usage in the Dominican Republic.

iQ Power Asia, Korea, has just shipped the first batteries to Fakhro Motors in Bahrain. Fakhro Motors was formed in 2007 and consists of a multi franchised car sales division and workshop facility, which is part of the Abdulla Yousif Fakhro and Sons Group (AYFS), which represents a wide spectrum of companies in the customer services industry in the Kingdom of Bahrain. World renowned brand names such as the McDonalds restaurant chain, Mobil Oil and Dunlop Tires are just a few of the many exciting brands, where the AYFS Group has earned an excellent reputation for delivering first class customer service and satisfaction.

 

Operations
In order to support the anticipated increased sales activity, Discover Energy has approved plans to fund an equipment expansion purchase program for the plant of iQ Power Asia. The investment will allow the iQ Power Asia plant to double its current product capacity. Additional increases are now being planned.

Financial results for 2nd half 2015 and full year 2015

  • License Income from operations doubled versus 1st half 2015
  • Losses reduced to CHF 1.1 million from CHF 1.4 million
  • Most losses due to one-time asset write-downs
  • Significantly improved Sales and Earnings for 2016 foreseen

Zug/Switzerland, 06.June 2016 – iQ Power Licensing AG (ISIN: CH00268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces the results for the 2nd half of 2015 and full year 2015.

 

Financial Results 2015
Due to the new corporate structure, the financial reporting and accounting regulations have changed. This makes comparisons difficult for this year especially. Next year comparisons will then return to normal.

Revenues from operations improved in the second half of 2015 from CHF 0.1 million to CHF 0.2 million with a total of CHF 0.3 million for the full year 2015, as the Korean facility used up the old iQ parts inventories and began ordering the new iQP-2 parts. The amount for the 2nd half was reduced by  CHF 0,05 million due to the financial restructuring. For the year, sales decreased from CHF 1.0 million (2014) to only CHF 0.3 million in 2015, mainly due to the one-time license payment in 2014. However, sales revenue could have been much more but major customers held back sales awaiting the re-start in Korea. The delay was prolonged due to the lack of a full product program.

The loss in the second half of 2015 showed an improvement over the first half of 2015 from minus CHF 1.4 million to minus CHF 1.1 million. The operating loss was only CHF 0.5 million, which is in line with the low revenues recorded. One-time write-downs accounted for the additional CHF 0.6 million loss: Write-downs of 0.4 million were for receivables and valuation of assets in iQ Power Asia, which were necessary as part of the re-structuring program. An additional write-down of CHF 0.2 million was required by the financial accounting rules for the investment in the small stationary battery company (formerly iQ Industries).

As usual, normal operational costs were equally divided between engineering, reporting and listing costs, and administration. All significant risks were considered in the financial statements.

The equity capital decreased from CHF 2.5 million to CHF 1.9 million at the end of the year. This was due to the losses incurred during 2015. Due to the financial restructuring the investment and stake in iQ Power Asia was re-classified from shareholding (29,4%) to financial asset because of the formal legal loss of influence on the company during the rehabilitation process at iQ Power Asia. The equity ratio decreased from 48% to 38%. The liquidity of the company remains satisfactory, with cash on hand of CHF 0,2 million at the end of 2015.

 

Outlook for 2016
Sales for 2016 year-to-date are up significantly from income generated in Korea, with sales already exceeding total year 2015. As orders and capacity expands in Korea, management anticipates significantly stronger sales than in 2015. There are further developments that may also add to profitability. It is too early to make a firm profit forecast for 2016, however, barring major unforeseen events, a worst case/best case scenario would show operative profits anywhere from some hundred thousand CHF loss to a several hundred thousand CHF profit.

Management views the overall situation as very positive for 2016.

iQ Power wins trademark dispute in the Peoples’ Republic of China

  • iQ Power trademark was challenged by local battery company
  • Chinese Trademark Office rules completely in favor of iQ Power Licensing AG

Zug, Switzerland 20 April 2016 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces the successful defense of the iQ Power trademark in the Peoples’ Republic of China.

Challenge
iQ Power management learned through its legal surveillance network of a local battery company that had applied to the Chinese federal patent and trademark office to use the same name for their batteries. According to Chinese regulations, the burden of proof for trademark defense lies with the company owning the trademark and not the challenger. The deciding factor for a successful defense is proof of use in daily business in China.

iQ Power has been reluctant to aggressively market in China due to the Chinese reputation for product piracy. Due to the low volume of activity, it was a major challenge to convince the government officials to confirm the validity of the trademark.

Successful Defense
Two key elements were used by iQ Power to prove the claim: First and foremost, iQ Power was able to use the sales of batteries with iQ Power logo in southern China through the Factory Warehouse of Discover Energy to show brand awareness. Secondly, iQ Power was able to show significant business activity from the extensive tooling program at the plastic injection molding company near Beijing, where numerous plastic part mold sets with the iQ Power logo are stored.

Intellectual Property Strategy is key to success
iQ Power has, over the years, spent a great deal of time and money to build up legal protection for the iQ Power brand and intellectual property. As the iQ Power technology gains momentum in the market place, the chances of copycats and brand theft increase.

As shown in this dispute, the attention to providing adequate protection is now paying off, even in countries not known for strong laws on intellectual property rights. iQ Power will continue to vigilantly monitor worldwide markets to defend its intellectual property and brand.

 

About iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

New Top Manager at Korean Battery Company iQ Power Asia Inc.

  • President and COO of iQ Power Asia appointed
  • New position responsible for all daily business activities

Gwangju, Republic of Korea, 29 March 2016 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, reports on a major personnel addition at the affiliated company, iQ Power Asia Inc., Gwangju, Republic of Korea.

iQ Power Asia Inc., (IQPA) announces the appointment of a new top manager. Mr. Cho Hui Seok will take on effective immediately the role of President and COO of IQPA. Mr. Cho (58), is a well-experienced manager, having worked in finance and business development for Daewoo Corporation for over 20 years. In addition, Mr. Cho has held the top management position at a medium-sized Korean LED technology company for several years. All employees at IQPA will report to Mr. Cho, who will guide the daily activities of IQPA.

Mr. Cho will report to the two court appointed administrators, one of which is the interim CEO and Chairman of the Board of Directors of iQ Power Asia, Bob Sullivan, who also is the CEO of iQ Power Licensing AG. Mr. Sullivan and his staff will aid and instruct Mr. Cho in all areas needed to successfully lead the company. Mr. Sullivan will continue to be responsible for overall activities during the transition period.

The transition of duties will take place until the end of 2016. Gradually throughout 2016, the current CEO of iQ Power Asia, Bob Sullivan, will shift his concentration to product development and global sales and business development activities of iQ Power Licensing AG. This transition will, over time, give Mr. Sullivan more time to devote to promoting the iQ Power technology, dealing with new licensing opportunities and taking care of the administrative activities of iQ Power Licensing AG.

Due to the fact that this new position was not included in the budget approved by the court for the revitalization program, the compensation and all expenses for Mr. Cho will be provided directly by Discover Energy Corporation (DEC), Vancouver, Canada, which is now the financial backer and largest creditor of IQPA. The appointment emphasizes the commitment of DEC to the factory and the iQ Power technology.

 
About the iQ Power technology:
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

 

Foto (from l. to r.):
New president and COO of iQPA Cho Hui Seok, co-owner of DEC Steve Nam, CEO of iQPLAG Bob Sullivan, co-administrator of iQPA Young-gon Moon, board member of iQPLAG Won-Lak Choi, co-owner of DEC Darwin Sauer.

 

Board of Directors agree to changes in license business

  • Discover Energy Corporation granted global non-exclusive license
  • International sales and marketing cooperation with Discover Energy Corp.
  • Sub-License to Discover Energy for production and sales in North America

Zug, Switzerland, 25 March 2016 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, reports Board of Director resolutions regarding changes to the license business.

Approval of new License and Sales Cooperation for Discover Energy Corporation
iQ Power Licensing AG (IQPLAG) announces the approval of a new license agreement as well as a sales and marketing cooperation agreement with Discover Energy Corporation (DEC). The new license agreement is a global non-exclusive agreement. The only territorial exception is South America, where only the licensee Moura Batteries can produce and sell batteries to the OEM market. It is possible for DEC and other customers of the South Korean company iQ Power Asia Inc. (IQPA), to export into North America and the South American aftermarket.

In 2013, a license was granted to the affiliated company, Discover Energy International Limited, Hong Kong. Due to the large and rapidly growing engagement of DEC in the IQPLAG technology, it was necessary to have a license agreement with the parent organization Discover Energy Corporation in Canada.

In addition to the license agreement, IQPLAG has entered into a Sales and Marketing Cooperation Agreement (SMC) with DEC. The agreement foresees a close cooperation between DEC and IQPLAG to create a harmonized and optimized aftermarket program worldwide.

DEC has committed millions of dollars to re-vitalize the South Korean company IQPA. In addition, DEC will invest large amounts money, personnel and time to develop a sales network for the IQPLAG mixing technology under the brand Mixtech. IQPLAG will benefit from the wide-ranging global business relationships of DEC. The aim of the cooperation is to position the IQPLAG mixing technology as a premium brand in all major markets worldwide.

Sub-License granted by iQ Power Asia Inc., Korea, to Discover Energy Corporation
The Board of Directors has resolved to allow a sub-license to be granted by iQ Power Asia to Discover Energy Incorporated. Under the terms of the iQ Power Asia License Agreement, sub-licenses can be granted outside their territory. The sub-license paves the way for Discover Energy to use American battery manufacturers to supplement the production of the Korean factory.

Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

iQ Power Asia announces supply agreements with new international customers in India, Kuwait and Sudan

Zug / Gwangju, South Korea, 23 February 2016 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces supply agreements from several new international customers of its Korean license partner iQ Power Asia Inc.

The latest major customer is an Indian battery and battery accessory supplier from New Delhi, India. The customer is a manufacturer of stand-by and motive power batteries with a worldwide distribution network, including large markets in Central and South America. Like most customers, the batteries will be under private label. Although there are many battery companies in the low wage country of India, the customer values the good quality and competitive prices of the Korean products.

Orders from another 4 new customers in Kuwait and Saudi Arabia were also received this month. Korean manufacturers are the major seller in the Gulf Coast market which is over 9 million batteries per year.

An agreement was also reached with a new customer in Sudan. The company, which is relatively new in the auto parts business, will build his sales effort around the batteries from iQ Power Asia. His marketing plans include a two brand strategy, including a premium line showcasing the iQ Power Technology under the brand „iQ Power“.

Usage conditions for batteries in Sudan are extremely hard. Most vehicles, including passenger cars, are used for commercial business. They are underway all day long with constant starts and stops and idle time in traffic jams.

Bob Sullivan, CEO of iQ Power Licensing and interim CEO of iQ Power Asia stated, „the most encouraging fact about the sales at iQ Power Asia is that every new customer, including the big distributors in North America, have become repeat customers. We are proud that iQ Power Asia continues to win new customers in a generally depressed battery market. With tooling completed for the new product line, both Discover Energy customers in North America and other Asian customers are responded with increased order quantities. The word is spreading about our factory and our technology. This is the reason our Board agreed to focus on revitalizing iQ Power Asia.“

First Commercial Vehicle Batteries with iQ Power technology produced

  • Commercial Vehicle Battery for truck and heavy duty vehicles for North America
  • Customers serviced through Discover Energy
  • Large numbers of early orders
  • Other sizes to follow during 2016

Zug / Gwangju, South Korea, 12 February 2016 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces the successful series production of commercial vehicle batteries at its Korean license partner iQ Power Asia Inc.

Most popular size in North American market
iQ Power Asia (IQPA) announces the production of batteries featuring iQ Power technology for truck and heavy duty vehicles. The model, known as Group 31, is the standard battery used in all modern trucks in North America. Tens of millions of this model are sold annually, because the trucks use a multiple number of the batteries per vehicle.

The iQ Power technology is especially good for truck and heavy duty vehicles because the battery often must service many electrically powered devices and motors in idle or motor-off mode. This deep discharge accelerates the acid stratification. iQ Power technology effectively eliminates the stratification, thus extending the battery life more than twice.

Discover Energy will distribute the battery to many of the largest battery wholesalers and distributors in the North American market. Several of the distributors have placed standing orders for monthly deliveries.

Over the course of 2016, iQ Power will also introduce commercial vehicle truck batteries with iQ Power Technology in the Asian JIS and European DIN standard sizes. iQ Power Asia has just finished this month increasing the passenger car product line from 9 to 35 different models. Following the commercial vehicles, even more models will be developed for specialty markets. By becoming a full product line supplier, IQ Power Asia will be able to more quickly increase sales.

Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

 

Picture:
The photo shows from left to right: Steve Nam, co-owner of Discover Energy International, Moon Young-gon, co-administrator of iQ Power Asia and Darwin Sauer, co-owner of Discover Energy International in front of the first produced commercial vehicle batteries type "Group 31 "for North America. Middle: a "Mixtech" battery for lage passenger cars

Hong Kong: Service Vehicle Advertising With iQ Power´s Technology

The international trading company Pro International from Hong Kong provides their service vehicles with a new advertising appearance. The company which specializes in auto parts serving commercial customers, is stressing the GreenTech aspect to the fore, including the withdrawal of used parts of its major customers. iQ Power and their innovative technology for starter batteries, propagated by Discover Energy under the name "MixTech", are part of the eye-catching advertising. The company also distributes Discover Energy's MixTech batteries. - The photos show the first vehicle with the new appearance.

Successful conclusion of negotiations in South Korea and results of first half year 2015

  • Rehabilitation Plan for South Korean factory approved by Court of Gwangju
  • New products introduced and increased sales to current and new customers
  • Cooperation with Discover Energy intensifies
  • Financial Results for the first six months of 2015

 
Zug / Gwangju, South Korea, 26 January 2016 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, gives a status update on its Korean license partner iQ Power Asia Inc.

 

Approval of Plan
iQ Power Asia (IQPA) announces the approval of the financial re-structuring plan by the Federal Court of Gwangju. Following long and intense negotiations, the required majority of creditors have voted for the plan submitted by IQPA to the court. The Plan foresees a partial debt re-payment totaling about 37% of the total claims submitted. The amount varies between various secured creditors and unsecured creditors. The payments will be stretched out over a time period starting at the end of 2016 and ending in year 2022.

The approval is a major step forward for the revitalization efforts. With the approval, IQPA has a stable financial basis from which to continue its aggressive expansion program. The approval is significant for both customers and suppliers and will spur further increases in sales. The stability will also allow for a secure basis for investment in plant and equipment to expand the capacity of the factory.

The key to achieving majority approval was the purchase of the senior secured debt by Discover Energy (DEC) as well as the purchase by DEC of the large unsecured debt from the 5 venture capital banks. The purchases represent a significant investment of DEC in IQPA. The purchases also underscore the large potential value of IQPA.

Until the end of the repayment plan, IQPA will remain under the oversight of the Court. The 2 administrators, including the current CEO of IQ Power Licensing AG, will remain in charge of day-to-day operations. All shareholders of iQ Power Asia will retain their current shares at a reduced par value, however the share percentage will be unchanged unless an investor should decide to make a capital contribution.

 

New products introduced and increased sales to current and new customers
All new tools for production of a full product line of passenger car batteries have now been produced and approved. Several models are already in series production. Testing of the samples for the remaining products are now taking place and all models should be ready for series production in early February.

Many major customers have already placed orders and are anxiously awaiting the shipments. The factory is racing to produce as many batteries as possible before the one week plant shutdown for Lunar New Year in the 2nd week of February.

The expanded model program and the stability of production and delivery are creating increased demand worldwide.

Development work is continuing for improved battery lead plate performance and new types of battery plates for start-stop engines and recreational vehicles. iQ Power Asia is working with many leading European and American chemical companies to find the optimal balance between power output and lifetime capacity for demanding applications.

 

Cooperation with Discover Energy intensifies
IQPLAG and DEC continue to work together to expand sales and increase the capabilities of IQPA. Although there are many customers for IQPA, all sales efforts are coordinated closely with Discover Energy. The aim of this cooperation is to promote the premium value of the mixing technology in the market. Rather than reduce prices to expand sales quickly, a premium price strategy is being implemented. This will be a significant factor in the long-term success of the technology.

 

Financial Results for the first six months of 2015
The total assets of the company were largely unchanged at CHF 5,08 million. The equity as a percent of total assets remained largely unchanged at 45% iQ Power recorded CHF 115k in sales revenue and a loss of CHF minus 1.377k. Both figures were significantly less than the previous period in 2014. The drop in sales and profitability were both due to one time events. The revenues and profitability for the 2nd half are significantly better. Details to the results can be found in the Financial Statements and accompanying Management Report.

Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

Status report on new products, new customers and the South Korean partner

  • Strongly expanded new product program
  • New customers in Gulf Region and elsewhere
  • Negotiations continue for Revitalization of South Korean factory

Zug / Gwangju, South Korea, 01 December 2015 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, gives a status update on its Korean license partner iQ Power Asia Inc.

 

New and expanded product program
iQ Power Asia announces the introduction of two additional battery models for the European and North American market. The additional battery sizes are two of the top 5 batteries sold in Europe and North America. In addition, the two largest selling sizes in North America are on schedule to introduce in December. The new sizes will be the top seller for iQ Power’s strategic partner Discover Energy in North America in 2016 and beyond.

In late December and early January, a complete new series of DIN European passenger car battery plastic cover and cases including the corresponding iQ Power electrolyte mixing units will be introduced. The new series of plastic parts are compatible with the EFB batteries used in start-stop vehicles. In addition, all battery models will be available with the hydrometer, commonly known as the magic eye, which is very popular in developing countries. Due to many further improvements and the introduction of even more models than originally planned, the completion of this round of new models was delayed one month from early December to early January. With the introductions, the total number of new battery models will now increase from 9 to a widely expanded number of 35 models. This all happened within a space of the last 6 months only. The widely increased number of battery types will be the key driver for expanded sales.

Development work is continuing for improved battery lead plate performance and new types of battery plates for start-stop engines and recreational vehicles. iQ Power Asia is working with many leading European and American chemical companies to find the optimal balance between power output and lifetime capacity for demanding applications.

 

Growing number of major customers
Supply contracts were signed with 3 major battery distributors in the Middle East. The distributors ship products to an area stretching from Iran to East Africa. In addition, two new distributors were added in Nigeria, bringing the total number of distributors to 3 in that country.

The number of distributors in North America supplied by Discover Energy continues also to grow. The latest additions include one of the largest distributors on the East Coast.

 

Progress in negotiations in South Korea
The Revitalization efforts for the restructuring of the Korean factory continue despite difficult but constructive negotiations with the major bank creditor. Due to the progress shown in the negotiations, the presiding court has tentatively decided to hold the decisive creditors meeting on 11-January-2016, in order to give time to all parties to reach an amicable agreement. Originally the creditors’ meeting was scheduled for 30-November-2015. It is recognized by the court that it is in the interest of all parties that the good progress at the factory should continue unabated.

Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

Plan proposal finalized and submitted to court for restructuring of Korean factory

  • Negotiations with creditors enter last phase
  • Results anticipated before end of the year

iQ Power Licensing AG announces the on time submission by iQ Power Asia Inc. of the Restructuring Plan Proposal to the court in Korea this Friday. The plan has been reviewed by the court in advance and meets all requirements prescribed by Korean law for a successful restructuring. The last hurdle to a successful plan will be the final agreement with the key creditors.

There have been several rounds of negotiations with the key creditors and all areas for agreement have been defined with possible solutions in discussion. Management hopes to have a conclusion in November or latest December. The final terms and conditions of the Plan will be determined after the negotiations have ended.

Management of iQ Power Licensing AG as well as Discover Energy and Daewoo International remain confident of a successful conclusion. The factory is investing heavily in new tooling for the expanded product offering. In addition, new battery types are being developed including a high cycle battery for recreational vehicles as well as a high capacity starter battery for commercial vehicles.

Bob Sullivan, CEO of iQ Power Licensing AG and interim CEO of iQ Power Asia and administrator of the Korean factory stated, “the continued heavy investment in tooling and new development is a clear signal that we believe in a successful conclusion of the restructuring process. While many battery companies are experiencing a downturn in orders, we continue to add new customers and increase order volume.”

Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

First deliveries to Russian market after re-start of iQ Power Asia plant

  • New Order delivered to Customer in Russia
  • Plant visit of Eastern Russian Customer to inaugurate new customer relationship
  • Major Promotion at Football Games and Trade Publications

 
iQ Power Asia announces the first shipment of 2 containers of Automotive Starter Batteries to the Russian market following the re-start of the Korean factory. Previous cooperation under the former management of iQ Power Asia was discontinued due to erratic delivery performance. The CEO of the Russian company MAXINTER, Mr. Melnikov confirmed that his company will resume distribution of the batteries through his established nationwide network, which is concentrated mainly east of the Ural Mountains in the Asian part of Russia.
 
Bob Sullivan, CEO of iQ Power Asia, welcomed Mr. Melnikov of MAXINTER for a visit to iQ Power Asia in Gwangju, South Korea, this week to discuss new product promotion programs. MAXINTER markets the batteries with iQ Power technology under the brand GEM. GEM will be one of 3 major brands to be showcased to both fleet and repair shops. Mr. Melnikov has indicated that he has already placed advertising in automobile and transportation specialty magazines and will place ads on the electronic billboard at several football stadiums in Eastern Russia next season. MAXINTER sponsors three different football teams as well as volleyball and table tennis teams, which travel throughout Russia and also internationally.
 
MAXINTER is one of the largest buyers of batteries in Eastern Russia and distributes a large number of automobile products imported from overseas as well as several Russian brands  (www.maxinter28.ru). Mr. Melnikov explained that Russian customers do not trust very much the Russian brands and are willing to pay more for imported batteries. Korean batteries are very popular because of the good price performance relationship.
 
Russia, with a population of over 200 million people, is a large market, which is funded through export sales of oil, mining and raw materials. Due to on-going trade difficulties with certain countries, the imports of batteries from Turkey and Korea are increasing steadily, despite an economic downturn. Sales of replacement batteries are not affected by economic downturns, because no one will stop driving due to a dead battery.
 
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

iQ Power Asia expands product portfolio by two new JIS type battery sizes

 

iQ Power Licensing AG announces the start of production of two new JIS type battery sizes, known as N40 and N60 at the South Korean plant of iQ Power Asia.

These two battery types are two widely sold battery sizes for Japanese and Korean sub-compact vehicles. The product introduction required many new tools and many adjustments to the production line. After about 2 weeks of testing and adjustment in all areas, the production is now running smoothly.

The product line is important because it rounds out the typical product line-up expected for battery customers in countries where Japanese and Korean cars dominate the market. Therefore, their inclusion in the product program will greatly aid sales around the world.

In another two weeks, three further models will be added, which are important for the North American and European markets. By year’s end the product program will be expanded from 9 to 17 models.

Positive feedback on batteries with iQ Power technology inside from taxi fleet customer in hot climate country of the Gulf area

  • Zero defects quality and excellent reliability
  • Bangladesh plant of DEI as top quality performance supplier

iQ Power Licensing AG reports the following status:
 
Discover Energy International (DEI) announces continued positive feedback from customers in the Gulf area. The latest testimonial came from the owner of one of the larger taxi fleets in the United Arab Emirates, Tawasul Autoservice LLC. They have reported zero defects and 100% reliability of the batteries from Bangladesh plant with the iQP-2 mixing technology of iQ Power since installing them in 541 vehicles early this year.
 
Taxi fleets are the toughest customers in the automotive market and the UAE is one of the toughest climates for automobiles in the world, with temperatures reaching 50 degrees Celsius at times and most of the year over 30 degrees. Taxis use the battery continually due to long idle times and running the air conditioning at maximum 24 hours a day. Even premium batteries experience failure modes in short time due to this heavy use.
 
Brands with iQ Power technology inside are picking up many professional fleet customers who put performance over price. The iQ Power brand is priced at the higher end of the market. Therefore the performance must be superb to gain market share.
 
As such market feedbacks come in only sporadically, Bob Sullivan, CEO of iQ Power Licensing AG and interim CEO of iQ Power Asia, was very grateful that a customer would take time to write a grateful letter and send pictures of the Discover Energy Mixtech battery with iQ Power technology in his taxis.
 
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

ISO Quality Certification awarded to plant of iQ Power Asia

  • ISO 9001:2009 Certificate for Quality Management
  • ISO 14001:2009 Certificate for Environmental Management

 
iQ Power Licensing AG reports the following status on iQ Power Asia:
 
iQ Power Asia (IQPA) announces the approval of the independent auditor’s for the award of ISO 9001:2009 and ISO 14001:2009 certification. IQPA received the IOS 9001:2009 certification in the areas of development, design and production. The certification audit was performed by KIWA-CERMET, a Europe-based, globally recognized auditing organization. KIWA-CERMET has been conducting Quality Management audits for over 30 years and has locations in over 40 countries.
 
The ISO certification is globally recognized as an independent and objective test of the competency of an organization to manage the quality process. The Quality Management System (QMS) is more than just a measure of the quality of the product and processes of an organization. The QMS establishes the guidelines and processes to ensure continual reliable products and services meeting or exceeding all relevant international guidelines. Almost all manufacturing organizations serving global customers are expected to have and maintain this certification.
 
In addition, IQPA was awarded the ISO 14001:2009 certificate for Environmental Management. This certificate verifies that an organization meets and maintains all relevant environmental and safety guidelines and regulations. Moreover, the certification verifies that the organization has an active program to anticipate and manage future possible environmental challenges.
 
Although generally expected, Bob Sullivan, CEO of iQ Power Licensing AG and interim CEO of iQ Power Asia, welcomed greatly the award, which was issued less than 3 months after re-start of production. This award shows that the factory is regaining stability and is now being run on a foundation of sound management principles.
 
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

Further progress achieved in Korean battery factory of iQ Power Asia

  • First new generation iQP-2 parts assembled into batteries in Korean plant
  • Motion simulator test machine starts tests to European OEM standards in Korean factory
  • New customer from Australia visits iQ Power Asia factory

 
Zug / Gwangju, South Korea, 01 September 2015 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, reports the following status on iQ Power Asia:
 
iQ Power Asia announces the successful assembly of the new generation iQP-2 mixing devices of iQ Power parts in the Korean facility. The iQP-2 parts have been in use in the Discover Energy supplier factory in Bangladesh since Q1 2013. The first shipment of 37.000 battery sets arrived at the factory on Monday and the first parts were used in the battery assembly on Tuesday.
 
Steffen Tschirch, inventor and chief engineer for the iQP-2 parts was on hand to oversee the beginning of the assembly. Thanks to the extremely easy assembly process of the IQP-2 parts, the local staff was able to start production without any deeper instructions from iQ Power technical staff. Local plant staff and Mr. Tschirch were able to quickly implement all necessary quality and safety procedures.
 
Mr. Tschirch will also oversee the start of testing using the German built motion simulator. This simulator meets all European OEM standards and will allow iQ Power to have comparable data on the benefits of the mixing technology in both Germany and Korea.
 
On Monday the plant received a visit from the Discover Energy customer in Australia, Enirgi Metal Group. The company is not only a major recycler of used batteries but also has an extensive distribution network for battery sales including 6 battery retail outlets. iQ Power management discussed the possibility of establishing an environmentally friendly “closed loop” supply system, in which iQ Power delivers new batteries to Enirgi Metal, who then collects used batteries from customers and recycles into lead that will be sent back to iQ Power Asia for battery manufacture.
 
A major long-term target market is the commercial vehicle fleet truck market. Australia is a vast country without a large rail system. Therefore the country relies on a huge number of trucks, which log up to 2 million miles per year and wear out batteries in less than 12 months.
 
Bob Sullivan, CEO of iQ Power Licensing AG and interim CEO of iQ Power Asia, welcomed greatly the chance to work with Enirgi Metal in both the OEM and Aftermarket in Australia.
 
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

 

Pictures:
- Teaching-in of new iQP-2 parts assemling in production line.
- Arriving of new iQP-2 parts sets for 37'000 batteries.

Important Milestone achieved in revitalization of Korean battery factory of iQ Power Asia

  • Court approves the report of the independent appraiser
  • Appraiser’s report confirms positive re-start and future prospects of factory
  • Court approves 2 month period for creditor negotiations

Zug / Gwangju, South Korea, 25 August 2015 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, reports the following status on iQ Power Asia:
 
iQ Power Asia announces the approval of the auditor’s report regarding the state of health of the Korean battery factory, iQ Power Asia, in Gwangju, South Korea. The Court also granted a 2 month negotiation period to reach a settlement with all creditor groups.
 
The independent auditor is appointed by the court to investigate if a company is financially and operationally viable and able to re-pay a significant amount of debts. The auditor has spent the last 60 days not only reviewing the current financial situation of the company, but also the detailed forecast for future sales and costs as well as the functionality of operations, including management and machine capabilities.
 
Would the appraiser have concluded that the liquidation value of the company is higher than the on-going value of the company, the Court would then suspend the rehabilitation program immediately and begin bankruptcy proceedings.
 
The appraiser, a certified public accountant with many years of experience in appraising companies in rehabilitation gave a very positive report for future prospects of the factory under the new management and with the support of the key customers, Discover Energy and Daewoo International. Emphasis was given to the large improvements made to machinery repair and improvement, large increase in tooling outlays for new product programs, as well as the adequacy of financing and the professional capability of the current staff, following dismissal of all previous senior managers. The Court accepted without change the report of the independent appraiser.
 
The company now will enter into tough negotiations with creditors to come up with a debt reduction and repayment program. During this time the plant will continue to operate normally and will aggressively expand the product offering in order to better serve customers in North America and Europe as well as developing countries in Asia and Africa.
 
Although generally expected, Bob Sullivan, CEO of iQ Power Licensing AG and interim CEO of iQ Power Asia, welcomed greatly the decision of the court and re-stated his aim to grow the business on a foundation of sound management principles.
 
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

US Patent and Trademark Office grants iQ Power Licensing AG important assembly patent

iQ Power Licensing AG was granted another technology patent with wide protection by the US Patent and Trademark Office for the important North American market with.

The patent was filed in January 2014. It complements and updates a patent from 2007 and deals with an important assembly patent which is relevant both for the iQ technology solutions IQP-1 as well as IQP-2. After changing to IQP-2 the patent blocks any unauthorized use of the iQ technology based on the predecessor solution IQP-1 by unauthorized third parties.

With this latest patent, iQ Power Licensing AG again underlines its technology leadership. 

New customer for iQ Power Asia in Nigeria as the gateway to Central Africa

  • New Order delivered to Customer in Nigeria
  • Plant visit of Nigerian Customer to inaugurate new customer relationship
  • The batteries are being shipped through Korean Distributor with sales in many countries

 
Zug / Gwangju, South Korea, 3 August 2015 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces a new customer of iQ Power Asia in Nigeria. iQ Power Asia delivers the first shipment of 2 sea containers (2.500 units) of Automotive Starter Batteries following the start up of the Korean factory, to the Nigerian market. The CEO of the Nigerian company SEARS INTERNATIONAL NIGERIA LIMITED, Mr. Nnamdi Benjamin Nwigwe will be distributing the batteries through his established nationwide network. The customer is being serviced by a local Korean distributor, who exports to many countries in the third world.
 
Bob Sullivan, CEO of iQ Power Asia, welcomed the Mr. Nnamdi Benjamin Nwigwe of SEARS INTERNATIONAL NIGERIA LIMITED for a visit to iQ Power Asia in Gwangju, Korea this week to discuss new product promotion programs. During the visit takes for a video were made which will air in TV commercials to be broadcast in Nigeria and neighboring countries. SEARS INTERNATIONAL NIGERIA LIMITED distributes a large number of consumer and automobile products imported from overseas.
 
Nigeria, with a population of 180 million people, is known as the gateway to Central Africa because many suppliers are attracted to its large market, which is funded through export sales of oil, mining and raw materials. There are over 16 million automobiles in the capital Lagos alone.
 
Besides Discover Energy and Daewoo International, iQ Power Asia has many other active exporters who supply countries as diverse as Russia, Indonesia and Guatemala. Since the change in management, iQ Power Asia has made good on all outstanding deliveries and many customers have started making regular monthly orders. Mr. Nnamdi has indicated that he will place orders for over 5.000 batteries per month and will grow the business quickly.
 
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. Electrolyte mixing is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

Canadian Energy has received their first batteries with DISCOVER MIXTECH

  • Plant visit of Canadian Energy senior management
  • Batteries are being distributed through Canadian Energy’s wholesale and retail distribution network in Canada

 iQ Power Licensing AG and Discover Energy Corp. announce the first shipment of 7 containers (7,500 units) of Automotive Starter Batteries equipped with iQ’s patented electrolyte mixing technology to Discover’s Canadian Factory Warehouse organization. Canadian Energy and Power will be distributing DISCOVER MIXTECH batteries through their established nationwide network.
 
Bob Sullivan, CEO of iQ Power Asia, welcomed the executive staff of Canadian Energy for a visit to iQ Power Asia in Gwangju, Korea this week to discuss new product programs. Discover Energy is funding the new case, cover and manufacturing tooling required to more than double production models to include the important sub-compact car type batteries for the Asian and American market, as well as for high capacity batteries for pick-up trucks, large SUV, commercial and farm equipment vehicles.
 
With an estimated more than 21.5 million registered vehicles on the road, Canada is one of the largest battery markets globally. More importantly, it is also strategically a key market to showcase DISCOVER MIXTECH technology’s performance in harsh winter climates. Discover has been field testing Mixtech batteries in some of its most difficult applications and environments in Canada since 2012 with measurable success.
 
Day in and day out Canadian Energy aims to provide the most value to its partners by offering the widest range of products in every market alongside a warranty that's the best in the biz – DISCOVER MIXTECH will be an intricate part of achieving this. The company offers unprecedented support to its customers and provides solutions for the most challenging problems in the most extreme applications.Canadian Energy’s goal is to be the industry leader in renewable energy generation and storage in Canada and is already one of the largest distributors of automotive and commercial batteries across the country.
 
DISCOVER MIXTECH, designed to generate better performance and longer life for batteries used in Start-Stop and micro-cyclic applications, meeting the growing demands of electronics usage in vehicles today and is the first significant innovation to the flooded starter battery in decades. Automatic 360 degree mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost of ownership over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

iQPLAG announces strong sales within first month of iQ Power Asia factory re-start

  • Re-start of production started on 15 June 2015
  • First month sales of more than 43,000 batteries
  • Deliveries to 15 different countries

 
iQ Power Licensing AG announces the successful re-start of sales at the Korean factory. The factory was allowed to start under financial re-structuring at the end of May and after a two week repair and maintenance period, the production was able to re-start on 15 June 2015.
 
During the first month the plant was able to sell more than 43.000 batteries to customers in 15 different countries, mainly in Asia and North America. This was a very good result.
 
With the financial support of Discover Energy, many optimization measures are being carried forth in the factory, which will also relieve bottlenecks in the production. The processes were plagued by many small equipment problems due to a total lack of proper maintenance during the time of the former management and financial stress.
 
Due to personnel restraints, the plant is only able to operate on a one shift basis. It has not yet decided when the plant will change to multiple shift operations. Currently plant salaried staff is working daily overtime to keep up with the demand.
 
iQ Power Licensing has sent 2 motion simulator devices and will be sending German engineers to carry out production audits and training in the near future. In addition, the current product line will be expanded from 9 to 11 models in August and will be further increased to 16 models by the end of this year, including the first commercial truck batteries.
 
Bob Sullivan, CEO of iQ Power Licensing and interim CEO of iQ Power Asia,  emphasized that both Discover Energy and Daewoo as well as many other former customers have expressed great satisfaction that the plant is returning to normal operations. The customers have all expressed their  interest in long term deliveries.

 

Further progress at JV factory iQ Power Asia, South Korea

  • Full Production resumed in all areas
  • Resumption of shipments in June
  • Ramp up to meet large order inflow
  • Changeover to system iQP-2 planned for July
  • New truck commercial battery with iQP-2 system planned for September production

 
Zug / Gwangju, South Korea, 15 June 2015 – iQ Power Licensing AG, a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces the resumption of full production following a maintenance, repair and refurbishment of equipment.
 
The first container of batteries has already left the plant and daily deliveries will be starting in this month after an inventory build up phase of 10 days.
 
The plant is now hiring new workers to meet the large amount of orders already booked. Besides the key customer, Discover Energy, other customers are located in Asia and the Middle East. The mixing battery is especially valued in hot countries, in which batteries have less than half the lifetime as in Europe due to climate conditions. Discussions are also being held for new customers elsewhere, however due to higher demand than production capacity, deliveries to large new customers may be delayed until later in 2016. Keeping with company policy, exact sales revenue is only reported in the official financial reports.
 
Besides the orders now booked, many new orders will be coming into the plant in July for August delivery with the introduction of the iQP-2 design mixing parts to the production process. The first delivery of iQP-2 parts is expected in July when the parts design in the batteries is changed from iQP-1 to the new iQP-2 devices.
 
In September/October a very significant increase will begin with the introduction of the new truck commercial battery with electrolyte mixing system iQP-2 for the North American market. Following the introduction for North America, the truck commercial battery sizes for Asia and thereafter Europe will be introduced. At first the large batteries will be sourced at other supplier factories, however with the 2nd production line planned for 2016, all battery sizes will be able to be produced at the Gwangju factory.
 
The plant in Gwangju is a key location for iQ Power Licensing. All batteries produced by the company are using the iQ Power technology and are subject to license fees to iQ Power Licensing. The plant has a high-speed assembly line and a cost effective plate plant.

iQ Power Licensing announces further breakthrough in revitalization of JV factory, iQ Power Asia, Korea

  • Official approval of Financial Re-Structuring Plan and appointment of Bob Sullivan as Administrator and CEO
  • Medium-term Financing of USD 5,0 million guaranteed by Daewoo International and Discover Energy
  • Large increase in production output and sales planned over next few months

 
iQ Power Licensing AG announces the official approval of the Financial Re-Structuring Plan for the joint venture plant iQ Power Asia in South Korea submitted by iQ Power Licensing and appointment of Bob Sullivan, CEO of iQ Power Licensing, as Administrator and CEO of the JV plant, effective immediately.
 
The plant in Gwangju is a key location for iQ Power Licensing. All batteries produced by the company are using the iQ Power technology and are subject to license fees to iQ Power Licensing. The plant has a high-speed assembly line and a cost effective plate plant.
 
The plant has had a history of stop-and-go production and poor financial health. In February 2015 the Board of Directors replaced the controversial CEO of the company with Bob Sullivan who in parallel is CEO of iQ Power Licensing.
 
In order to revitalize the factory and make it attractive for new investment to further increase capacity, the new CEO applied for financial restructuring with creditor protection, known under Korean law as “Rehabilitation”. The approval process took two months due to strong opposition from ex-senior managers led by the former CEO, who is now being investigated on civil and criminal charges in relation to questionable financial and legal dealings done while he was CEO of the company.
 
Key to the Rehabilitation Plan is a medium-term financing of USD 5 million including working capital, as well as funds for tooling and small capital expenditures to bring the production line to full capacity. The application approval is the kick-off for using the funds to re-start full scale production. The approval also allows for serious talks with potential investors to make further significant investments to double and triple output in the next 24 months.
 
Over the forthcoming two months the plant output will be raised to 40.000 batteries per month and later this year to 100.000 batteries per month. Following participation of new investors for a further capital injection, the capacity can be raised to over three million batteries per year. The plant layout allows for a capacity of up to six million batteries per year. Discover Energy and Daewoo International both have committed to sell as many batteries as the factory can produce to their worldwide customer base. The plan also has domestic customers and several other smaller customers in Asia and other regions.
 
The court has appointed an experienced English-speaking Korean co-administrator, who will assist in communication with the court while Mr. Sullivan concentrates on production and daily operations.
 

iQ Power-Partner Discover Energy signs Distribution and Supply Agreement for Kuwait

  • New Master Distributor is Mohamed Naser Al-Sayer & Sons Est. Co. WLL (MNSS).
  • Al-Sayer opening orders completed.

Zug / Hong Kong, 20 May 2015 – Discover Energy International Limited, Hong Kong, announces the second new Master Distributor in the Middle East. A Supply Agreement has been signed with Mohamed Naser Al-Sayer & Sons Est. Co. WLL. Al-Sayer is exclusively distributing Discover’s ECO, ECO Premium and BULL brands in Kuwait. The company’s Extreme Duty Commercial Batteries and Automotive Starter Batteries with DISCOVER MIXTECH (utilizing iQ Power’s new generation technology) are included in the initial product offering.

Mohamed Naser Al-Sayer (MNSS), being the exclusive sales, service and parts distributor of Toyota and Lexus vehicles in Kuwait, has been in automotive business for more than half a century. MNSS is part of the prestigious Al-Sayer Group that was founded by Chairman Naser Mohamed Al-Sayer in 1954 by becoming the second representative in the world for the Toyota Trademark.

As of today the Group is one of the most renowned and reputed organization in Kuwait having expanded businesses across different sectors such as automotive, heavy equipment, financing, investment, real estate, services, leasing, retail, insurance, car accessories, technology, general trade, contracting, medical and entertainment sectors, employing staffs across different nationalities. The Group has also stepped out of the borders of Kuwait to that of the Gulf and the Arab World to become an International Group.

As a part of the on-going automotive business expansion strategy and commitment to environmental stewardship, MNSS is optimistic about introducing this revolutionary technological product from Discover Energy and iQ Power into the battery segment in Kuwait. “We are targeting to achieve 15% market share in 5 years’ time in this competitive and growing market, which will be well supported by our national launch as well as marketing campaigns” said Krishna Kumar, General Manager of Tyre, Oils, Paints & Garage Equipment Division, Mohamed Naser Al-Sayer & Sons Est. Co. WLL. The distribution strengths of MNSS in the Retail and Corporate segments coupled with Discover’s decades of experience in developing battery distribution networks worldwide, is an attractive combination.

Discover and iQ Power are honored to align with such a respected family house in Kuwait. Signing this Supply Agreement for Kuwait is an important step for Discover and iQ Power as it reaffirms the value the industry is seeing in the MIXTECH technology.

Kevin Loman, Director, Discover Energy International Limited, Hong Kong said “entering into a distribution partnership with Mohamed Naser Al-Sayer marks the second stage of our strategy to develop the brand and technology across the GCC as a fully integrated and unified market.” DISCOVER MIXTECH has its biggest impact in hot climates where the lifetime of a battery is often one year or less, so in a market like Kuwait it can change the competitive landscape.

Discover is a manufacturer and distributor of battery and power related products with strategically located facilities globally. The company has world leading OEM and aftermarket customers, engineers Clean & Green® innovative products and operates responsible product life cycle management and recycling programs.

DISCOVER MIXTECH, designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

iQ Power Licensing partner Discover Energy ships first MIXTECH batteries to its factory warehouse Power and Energy USA in Miami

  • Batteries are expected to be ready for distribution through Power and Energy´s wholesale and retail distribution network in the United States and Latin America in May

 Zug / Hong Kong, 13 April 2015  – Discover Energy International Limited, Hong Kong, announces the shipment of its first inventory of batteries with DISCOVER MIXTECH (utilizing iQ Power’s new generation technology) to Power and Energy USA, one of the company’s Factory Warehouses in North America. The batteries will be distributed through Power and Energy’s established network in the United States and Latin America from its warehouse in Miami, Florida.
 
North American is the worlds largest battery market, making it a critical component in the global development for and sales growth of batteries with DISCOVER MIXTECH. With an estimated more than 294 million registered vehicles in North America, and close to another 4.4 million in the Caribbean, it is strategically key to showcase the performance of DISCOVER MIXTECH technology in these markets.
 
Kevin Loman, Director, Discover Energy International Limited, Hong Kong said, “we are excited to see how the DISCOVER MIXTECH innovation influences product positioning in these markets and how it drives Power and Energy’s market share.” Distributors with access to batteries with DISCOVER MIXTECH will gain competitive advantages through their ability to offer benefits and features that are not available with competing products.
 
Power and Energy USA provides integrated services by representing and distributing products on a global scale, offering only top quality products and a full range of logistics services at competitive prices. The company adds value to customers and supply partners by developing loyal and reliable long-term relationships.
 
Discover is a manufacturer and distributor of battery and power related products with strategically located facilities globally, and world leading OEM and aftermarket customers. Discover engineers Clean & Green® innovative products and operates responsible product life cycle management and recycling programs.
 
DISCOVER MIXTECH, designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

Global Patent Offensive for New iQP-2 Technology in Over 50 Countries

  • Simultaneous global patent applications in over 50 countries worldwide
  • All major battery producing countries and over 90% of global market covered
  • Financing secured through selective issuance of existing convertible bond to large investors
 

Zug/Switzerland, 11 March 2015 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licences in these technologies, announces the simultaneous global patent applications in over 50 more countries worldwide for the ground-breaking iQP-2 version of the iQ Power passive electrolyte mixing technology.

iQP-2 technology has already been approved by the European Patent Office under the rules of the Paris Convention Treaty (PCT) which allows for pre-national global patent protection. Following a 30 month grace period, patents must be applied at the national level in each country to be made legally enforceable.

The granting of the actual patents can take up to 5 years, however the patent protection exists from the date of application. The chances for success in all countries is very high due to the excellent review at the European level and the fact that iQ Power has never had a patent application denied to date.

As a technology driven company, patent protection for the Licensees is of great strategic importance. Due to universal global appeal of the iQP-2 technology and the growing importance of emerging markets, iQ Power management will apply for protection in over 50 countries. Already all major markets in South America are in the national application phase as well as several minor markets, such as Pakistan and Bangladesh, which do not participate in the PCT.

In doing so, iQ Power will have patent protection in all major battery producing countries in the world and total coverage will exceed 90% of the consumer market for batteries.

An application at the national level costs several thousand US dollars per country. The cost for the massive offensive will be financed through a limited issuance of the existing convertible bond, ISIN DE000A1GXE20, with end date 31-Dec-2016. Due to European regulations, the convertible bond may only be made available to a limited amount of subscribers on a private placement basis. A rights offering or public offering is prohibited. Preliminary commitments from large investors will be sufficient to allow timely patent applications.

iQ Power partner Discover Energy International announces strong reorders from UAE Master Distributor OBY

  • Discover Energy International receives strong reorders from UAE Master Distributor OBY, Omeir Bin Youssef & Sons
  • DISCOVER MIXTECH technology being well received in the United Arabic Emirates UAE.
 

Zug / Hong Kong, 06 March 2014 – Discover Energy International Limited, Hong Kong, announces strong reorders from its Master Distributor in the UAE, Omeir Bin Youssef & Sons LLC (OBY). Following a successful product launch in September 2014 (highlights can be seen at https://www.youtube.com/watch?v=fI51-yk9yqk&feature=youtu.be) demand has steadily increased through all distribution channels in the market, especially amongst fleet and commercial accounts.

Kevin Loman, Director of Discover Energy International Limited, Hong Kong, said, “DISCOVER MIXTECH is being well received, and with its effectiveness in hot climates fleet managers are able to realize productivity gains and financial savings in their maintenance schedules, through reduced field calls, and from the extended battery life.” The UAE is approaching its sales high season, and everyone is eagerly anticipating the markets continued growth in demand for Eco and Eco Premium batteries.

Omeir Bin Youssef & Sons LLC is part of the prestigious Omeir Bin Youssef Group that was founded by brothers Mr. Khalifa Bin Youssef & Mr. Omeir Bin Youssef in 1956 with first franchise acquisition in 1959. Today they are one of the most respected business Houses in Abu Dhabi & the UAE. With a presence in varied business sectors (Automotive, Travel Services, Real Estate and Engineering & Technology), OBY employs almost 2,000 staff across many nationalities. Some prominent partners from the past & present are GM, Bedford, Peugeot, Gulf Air, Etihad Airways, ABB and Alstom. OBY has been in automotive business for more than half a century. They are exclusive partners to Peugeot in Abu Dhabi & Al-Ain with a network of showrooms and service centres, and have been associated with Peugeot for more than 15 years. OBY is committed to this excellent and ever growing relationship for many more years, Inshallah.

Discover is a manufacturer and distributor of battery and power related products with decades of experience. The company has strategically located facilities globally, world leading OEM and aftermarket customers, and is the largest provider of EV Traction Dry Cell Batteries for OEM Solutions Worldwide. Discover engineers Clean & Green® innovative products and operates responsible product life cycle management and recycling programs.

DISCOVER MIXTECH, designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

Breakthrough with iQ Power Asia: Management Change at Joint Venture Partner in South Korea

  • CEO of iQ Power Licensing AG, Bob Sullivan, also appointed CEO of iQ Power Asia Inc.
  • Change in management clears way for re-organization and re-financing of Korean joint venture partner
 

iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) announces the appointment of Bob Sullivan, CEO of iQ Power Licensing AG as new CEO of iQ Power Asia Inc., Gwangju, South Korea, effective immediately. Bob Sullivan remains, however, CEO of Swiss iQ Power Licensing AG.

Following a year-long controversy, the Board of Directors of iQ Power Asia (IQPA) have made an important step in the process for the re-organization and re-financing of the modern but financially beleaguered battery factory in southwestern Korea. The management change at the top level of the company is seen as a breakthrough for the further development of the new battery plant.

Currently the plant is producing far below its capacity due to financial restraints. This can be corrected only through a new re-organization and re-financing. Through the installation of the new CEO, serious and constructive negotiations with new investors can be conducted without obstruction.

The new CEO has the full support of the banks involved as well as the two most important customers, Daewoo International and Discover Energy International. “I am committed to find an optimal solution for the new start as soon as possible”, comments Bob Sullivan, new CEO of iQ Power Asia and CEO od iQ Power Licensing AG. “For the near term, iQ Power Asia will work closely with Daewoo and Discover Energy to ramp up sales volume and to improve all areas of production and operations”, he says.

Currently, the timing of the new re-organization and re-financing is still unknown. However investors, both strategic as well as financial, have shown strong interest due to the unique product offering using the iQ Power technology and the high speed modern manufacturing facility. Korea has a very good reputation internationally thanks to the success of Samsung, Hyundai and the major battery makers. This is critical for sales in developing countries. Korea is the leading battery export country in the world and is the world price/quality leader for automotive starter batteries.

The stabilization and ramp up of the plant at Gwangju, South Korea, is very important for iQ Power Licensing. At present the plant has modern production line, which is configured especially for batteries with iQ Power technology. The plant has the ability to produce high quality batteries using iQ Power technology in large quantities at competitive prices.

Even more important in the long term is that the success of the factory will act as a showcase for other possible licensees in other countries throughout the world.

Important Notice: Beginning of Trading of shares of iQ Power Licensing AG on 16.Feb.2015

  • Number of Shares will be reduced by a factor of 4 (Reverse Split 4:1)
  • Share price value increases by factor of 4
 

iQ Power Licensing AG   (ISIN: CH0268536338;   WKN/Security Number: A14M1C;   Symbol iQL) announces the beginning of trading on the Berlin Stock Exchange.

Following the merger of iQ Power AG into its 100% subsidiary, iQ Power Licensing AG, new shares of iQ Power Licensing AG have been issued for trading on the Berlin Stock Exchange and the old shares of iQ Power AG have been cancelled.

Shareholders must note that they will have only 25% as many shares as previously due to the reverse split of 4 : 1 which took place with the merger and issuance of new shares. The new common shares of iQ Power Licensing AG are four times more valuable than the previous shares of iQ Power AG.

Details of the reverse merger of iQ Power Licensing AG with iQ Power AG

 

iQ Power AG
Zug / Switzerland

- ISIN CH0020609688 (German WKN A0DQVL) and
ISIN CH0199540599 (German WKN A1J7TW) -

Announcement of the reverse merger of iQ Power Licensing AG (CHE 112 032 071) with iQ Power AG pursuant to (CHE 112 097 716). Art. 3, para. 1 lit. a Merger Act and the merger of capital into iQ Power Licensing AG

 

The former iQ Power AG ("iQP") held a stake of 100% in its former subsidiary iQ Power Licensing AG ("iQPL"). The extraordinary shareholder meetings of the iQP and iQPL agreed on 01/27/2015 to the acquisition of iQP within the meaning of Art. 3, para. 1 lit. a FusG by the iQPL. Since through the reverse merger by civil resolution the acquired iQP dissolves without liquidation, it is required that the acquiring iQPL overtakes the legal status of iQP in the context of an overall succession. Upon registration of the merger in the commercial register on 1/27/2015 the reverse merger has become effective. The reverse merger is intended to simplify the group structure to reduce costs and increase the attractiveness of the trade of iQP-shares on the stock exchange.

Furthermore, the Extraordinary Shareholder Meeting of iQPL on 01/27/2015. Art. 623 OR has decided that the current 100 iQPL registered shares with a nominal value of CHF 1,000 will be split each into 10,000,000 registered shares with a nominal value of CHF 0.01. In addition, the Shareholders of iQPL have decided to increase the capital, Art. 650 para. 1 OR, so that in a second step, the iQPL share capital of CHF 100,000.00 increased by CHF 2,352,353.38 through the issuance of 235,235,338 registered shares with a nominal value of CHF 0.01 each. Following the entry of the merger in the commercial register, the iQPL will have a share capital of CHF 2,452,353.38, divided into 245,235,338 registered shares with a nominal value of CHF 0.01 each. The decision on the capital increase and the corresponding amendment of statutes were (Art 650 para 3, 651a, Section 1 OR) registered on 01/27/2015 in the commercial register of the company and have thus become effective; since then the share capital of iQPL is effectively increased.

The exchange of the iQP shares in iQPL shares tendered will be accomplished with an exchange ratio of 4: 1. Each shareholder of iQP will receive 1 (one) iQPL registered shares with a nominal value of CHF 0.01 per 4 (four) iQP ordinary shares (ISIN CH0020609688 ; German WKN A0DQVL) having a nominal value of CHF 0.03 each. In addition, each iQP shareholder shall receive 1 (one) iQPL registered share with a nominal value of CHF 0.01 per 4 (four) iQP voting rights and preferential registered shares with a nominal value of CHF 0.01 each (ISIN CH0199540599 German WKN A1J7TW). Therefore, the iQP ordinary shares with a par value of CHF 0.03 are put equal in value per iQP voting and preference shares with a par value of CHF 0.01 each.

The new iQPL registered shares are entitled to profits from 01/01/2014.

In the evening of 02/13/2015 after the market close, the Clearstream Banking AG, Frankfurt am Main, will book out all of the old iQP ordinary shares (ISIN CH0020609688; German WKN A0DQVL) and all of the old iQP voting rights and preferential registered shares (ISIN CH0199540599; German WKN A1J7TW) with value date or settlement date for 2/16/2015 and place at Clearing House VEM Bank AG for the purpose of booking out and exchange for the iQPL registered shares. On the same day, the Clearstream Banking AG will credit the custodian banks with the new iQPL registered shares (ISIN CH0268536338; German WKN A14M1C), with the value date and settlement date of 02/16/2015. As of 02/16/2015 (value date of the share exchange) the iQPL registered shares are tradable in the Open Market in Berlin. The trading symbol from this day onwards is iQL.

In the event that shares held by the exchange ratio of 4:1 do not share completely by four, the shareholders receive a corresponding compensation in the form of a cash.

Zug / Switzerland, February 2015

iQ Power Licensing AG
Board of Directors

Update to changeover from old shares to new shares of iQ Power Licensing AG

  • End of trading of old shares possible this week
  • Beginning of trading of new shares in the week of 16.February2015
 

iQ Power AG announces the likely timing of the changeover in trading from old shares of iQ Power AG to new shares of iQ Power Licensing AG.

Following the merger of iQ Power AG into its 100% subsidiary, iQ Power Licensing AG, new shares with a new ISIN and stock abbreviation will be issued for trading on the Berlin Stock Exchange and the old shares in Frankfurt and Berlin will be de-listed. Originally management was advised from the advisory banks that trading in the old shares would continue until one to five days before new shares could be traded.

Following the official approval of the resolution and formal contact with the exchange and share register, it appears that as early as this week the old shares will be de-listed. Meanwhile the share register will be able to create the new named shares in the week of February 16th. This will mean a pause in trading of around two weeks instead of the previously envisaged pause of one week.

Management and the advisory banks has taken great efforts to minimize the break in trading to as short a period as possible, however the administrative execution at the stock exchanges is outside of their control. Management does not anticipate any negative consequences due to the somewhat longer trading pause.

Reverse Merger of iQ Power AG into iQ Power Licensing AG overwhelmingly approved by Shareholders

  • Merger of iQ Power AG with the wholly owned subsidiary iQ Power Licensing AG
  • Both measures pass by 99% and 93% majorities.
  • Equity restructuring will allow earlier dividend payout
  • Simplified company structure will increase efficiency and reduce costs
  • Current shares to be exchanged for new shares in the new company
  • Listing of the new shares on the Berlin stock exchange is planned
  • Reduction in the total number of shares in a 4:1 ratio
  • Amalgamation of the two previous classes of shares
 
iQ Power AG announces that shareholders at an extraordinary general meeting approved the merger contract entered into by iQ Power AG and iQ Power Licensing AG. The extraordinary general meeting was held at 10 a.m. on 27 January 2015 at the premises of the Migros Klubschule, Metalli-Gebäude, Industriestrasse 15, Zug, Switzerland. The resolution on the merger was passed by 93% of the votes and the resolution for the set-off of capital contribution reserves in the amount of CHF 14,575,665.57 through loss carry-forward, which is an accounting prerequisite for the merger, was passed with a 99% majority. 

The plan involves the takeover of iQ Power AG by iQ Power Licensing AG, which is a wholly owned subsidiary of iQ Power AG and is the legal owner of all patent rights held by the iQ Power Group as well as all tools and equipment for the production of the plastic components based on the patents held by the iQ Power Group.

All rights and obligations of iQ Power AG will be taken over in full by iQ Power Licensing AG as part of the merger.

The key reason for the merger is the prospect of being able earlier than was previously possible to distribute dividends as soon as the company earns suitable profits.

The implementation of the planned transaction will reduce the share capital of the listed company to 2.452 million Swiss francs and the total number of shares will be reduced to around 245 million and this will mean, as a result, an exchange ratio of 4:1 for the new shares. The total net assets of the iQ Power Group will be the same post-merger.

It is intended to list the new shares after the merger on the Berlin Stock Market.

Shareholders whose shareholdings cannot be divided by four at the exchange ratio of 4:1 will receive a corresponding cash settlement based on the value of the shares after trading in the new shares commences.

The merged company will feature a more transparent and simple structure with one legal unit and with only one category of shares. The simplified structure will trim many administrative expenses and reduce the operating costs. Examples of this include the previous high costs related to the financial reporting, the fees paid to authorities and also the expenditure of time of by company personnel.

As the dividend rights of the two previous classes of shares (ordinary and preference) are financially the same and the voting rights are broadly identical, the exchange ratio for the two classes will be the same. This means 1 new registered share of common for every 4 current common shares as well as for every 4 preference shares. This situation has been reviewed and the ratio was confirmed by the independent Swiss auditors in the official Merger report.

iQ Power partner Discover Energy starts sales of its DISCOVER MIXTECH car batteries throughout Canada by its distribution network Canadian Energy

  • The batteries are being distributed through Canadian Energy’s wholesale and retail distribution network in Canada.
  • Discover Energy International Limited’s (Discover) Factory Warehouse in Canada, Canadian Energy, has received their first batteries with DISCOVER MIXTECH.
 

Zug / Hong Kong, 21 January 2014 – Discover Energy International Limited, Hong Kong, announces the delivery of its first shipment of Automotive Starter Batteries with DISCOVER MIXTECH (utilizing iQ Power’s new generation technology) to the North American market. Canadian Energy, the company’s Factory Warehouse in Canada has received, and is distributing the batteries through their established nationwide network.

With an estimated more than 21.5 million registered vehicles on the road, Canada is one of the largest battery markets globally. It is also strategically a key market to showcase DISCOVER MIXTECH technology’s performance in harsh winter climates. Kevin Loman, Director, Discover Energy International Limited, Hong Kong said “the DISCOVER MIXTECH innovation allows optimal charging and retention of charge in extreme cold temperatures, and since Canada has one of the coldest operating conditions on the planet, it is one of the best markets from which to illustrate the benefits of DISCOVER MIXTECH.”

Day in and day out Canadian Energy aims to provide the most value to its partners by offering the widest range of products in every market alongside a warranty that's the best in the biz – DISCOVER MIXTECH will be an intricate part of achieving this. The company offers unprecedented support to its customers and provides solutions for the most challenging problems in the most extreme applications. Canadian Energy’s goal is to be the industry leader in renewable energy generation and storage in Canada and is already one of the largest distributors of automotive and commercial batteries across the country.

Discover Energy has strategically located facilities around the globe, world-leading OEM and after market customers, and is one of the largest providers of EV Traction Dry Cell Batteries for OEM Solutions Worldwide. Discover manufactures and distributes battery and power related products, engineers Clean & Green® innovative solutions, and operates responsible product life cycle management and recycling programs.

DISCOVER MIXTECH, designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.

iQ Power Licensing AG takes over legal control of Chemnitz battery R&D center

  • iQ Power Licensing AG purchases all the shares of independent battery R&D company.
  • Move to improve control, speed and costs of R&D efforts

Zug/Switzerland, 15 January 2015  –  iQ Power AG (ISIN: CH0020609688, German Securities Code Number (WKN): A0DQVL / symbol: IQPB, ISIN: CH0199540599 / German Securities Code Number (WKN): A1J7TW / symbol: IQPA), a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licences in these technologies, announces that iQ Power Licensing AG, a 100% subsidiary of iQ Power AG and owner of all intellectual properties of the iQ Power technology, has purchased all shares in the independent service company, Battery Engineering and Services UG, Chemnitz, Germany. The company will be re-named to iQ Power Chemnitz UG and the CEO will be Bob Sullivan, who is also current CEO of iQ Power AG and iQ Power Licensing AG.

The company is a small 4 person R&D and accounting company working exclusively for iQ Power Licensing AG. Prior to 2014, the operation in Chemnitz was owned by iQ Power GmbH. In 2014 the operation made itself into an independent company.

The acquisition price is EUR 10.000 and covers the paid-in capital and start-up expenses of the company. Under the agreement prior to takeover, iQ Power Licensing paid all approved costs plus a 5% profit required for tax purposes. With the takeover, iQ Power Licensing AG will save the profits, including all profits for 2014.

More importantly, by having the company as a fully-owned subsidiary with the same CEO in both companies, the decision-making and execution will be greatly speeded up. In addition, the control function will be greatly improved, which is important because the engineers in Chemnitz are responsible for the patents and technological processes, which represent the core value of iQ Power.

iQ Power awarded further patents in Japan and USA

  • iQ Power Licensing AG receives patents in two important markets.
  • Patents are for the first generation of passive electrolyte mixing elements.

Zug/Switzerland, 02 January 2015  –  iQ Power AG (ISIN: CH0020609688, German Securities Code Number (WKN): A0DQVL / symbol: IQPB, ISIN: CH0199540599 / German Securities Code Number (WKN): A1J7TW / symbol: IQPA), a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licences in these technologies, announces the granting of patents for the iQ Power first generation technology. The patents cover iQP-1.2 and iQP-1.3, which are auxillary patents to iQP-1.0 and IQP-1.1 (and which were already granted in the two countries). Both new patents  bolster the patent arsenal of iQ Power.

iQ Power Licensing AG, a 100% subsidiary of iQ Power AG and in charge of marketing the iQ Power technology, has received patent protection for its technology of passive electrolyte mixing for starter batteries in all major markets, including all European countries with starter battery manufacturing including Turkey and Russia, but also battery producing countries such as USA, China, Korea, Brazil and has patents pending in many other countries. Patent applications at the national level can take a very long time. The patents just granted were for applications in 2007 and 2010. The protection starts at time for application and runs for 20 years following the grant of patent.

Although the first generation technology is no longer in use by iQ Power, the patent protection is important to keep competitors from using the older technology. The iQP-1 generation is not as effective and efficient as the new generation and is not as easy to use in battery assembly as the second generation of iQ Power Technology, iQP-2, which also allows quick robot assembly.

More importantly, the granting of these patents continues the success of the iQ Power patent pipeline strategy. The patent pipeline strategy is to create inter-connected and inter-dependent patents, which greatly increase the difficulty of working around the iQ Power technology. By always having new patents pending, the competition can never be sure if a possible work-around will infringe on an upcoming iQ Power patent.

Equally important, the granting of these patents continues the perfect track record of patent applications for iQ Power. iQ Power has never been denied a patent application. This means that in countries were patents are pending, it is almost certain that the patent will be granted.

iQ Power intends also in 2015 to apply for new patents.