Ad-hoc Archive

Here are previous ad hoc news. Latest news see   Ad-hoc News

 

 

Shareholders approve major steps in proposed company merger with Engenavis

 

  • Resolution for capital increase with 72% majority approved at the Extraordinary Shareholders’ Meeting
  • Share exchange agreements for over 170 million shares signed
  • Engenavis will have slightly over 67% of iQ Power Licensing after capital increase and execution of share exchange agreements
  • Due Diligence and receipt of funds still required to fulfill the conditions of merger

 

Zug, Switzerland, 27 April 2018 – 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 approval of the capital increase of 260 million shares at EUR 0,07 per IQPL share which is a key step for the merger with the green technology company in USA, Engenavis Inc., headed by star investor, George Weiss.

Approximately 170 million votes or 72% of the attendees were cast for the resolution at the Extraordinary Shareholders’ Meeting on April 27th in Zug.

In addition, Share Exchange Agreements have been signed to exchange over 170 million shares of iQPL shares for Engenavis shares. Combined with the share purchase of 200 million shares by Engenavis in the upcoming capital increase, Engenavis Inc. will possess slightly over 67% of current outstanding shares in the iQ Power Licensing AG.

All other major requirements on the side of iQ Power Licensing have been achieved, however further steps are necessary to achieve the merger. They include a successful conclusion to the on-going Due Diligence process by the end of May, 2018 and the conclusion the capital increase, anticipated for June this year. Following the conclusion of the capital increase, Engenavis will immediately apply for a new listing in Germany. Within approximately three months, trading of the new company will start and, following a six month notification period, the current shares of iQPL will be de-listed.

 

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 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

 

Merger of iQ Power Licensing AG into green technology company in USA

 

  • Board of Directors approve offer for merger with green technology company Engenavis in USA
  • Investment of minimum USD 17 million into iQ Power Licensing for new business initatives at EUR 0,07 / share
  • USA company, Engenavis Inc., headed by Wall Street star investor George Weiss
  • Merged new company will be named iQ POWER Inc.
  • Listing on Frankfurt General Standard and NASDQ planned
  • Complete merger into USA company planned at EUR 0,108 / share equivalent
  • Deal contingent on voluntary share exchange, shareholder approval and due diligence

 

Zug, Switzerland, 04 April 2018 – 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 Board of Directors approve offer for merger with a green technology company in USA.

The merger partner is Engenavis Inc., Delaware, USA. Engenavis (ENG) is headed by star investor, George Weiss. The company features several start-up business units centering around environmentally-friendly technologies, including anti-idling fuel savings technology or mobile solar energy units. The technology section for no emission waste and used tyre recycling Toterra will be a subsidiary and a legally separate business unit.

The company has committed investment from a Wall Street institutional investor for USD 35 million or more, of which USD 17 million or more will be directly invested into iQ Power Licensing AG (IQP) for business expansion. The expansion plans shall be detailed in a separate report. The investment from the Wall Street institutional investor was based on a post-investment and post-merger valuation for Engenavis  of an estimated USD 120 million. iQ Power Licensing will be merged at a value of 38% of the new company, which will equal EUR 0,108 per share post-dilution.

Shareholders of IQP stock will be requested to sign share exchange agreements in advance of the upcoming extraordinary Shareholders’ Meeting (ESM) in late April. The exchange agreements will only go into effect at completion of the entire transaction. A 2/3 majority of ESM attendees and proxies will be required to approve creation of up to 260 million shares of share capital at EUR 0,07/share for the transaction. The transaction will take place as a private placement, limited to 10 subscribers including Engenavis, whereas Engenavis will take at least 200 million shares.

Following the transaction, the new company iQ POWER Inc. will apply to be listed as soon as possible in 2018 on the OTC in the USA and/or an OTC in Germany.  The listing on the Frankfurt General Standard and also on the NASDAQ exchange in the USA is planned for 2019. A possible listing in Singapore is being considered.

The shares of iQP will be de-listed around the same time as the new listing for iQ POWER Inc. comes into force. Shares not exchanged will continue to be valid, but cannot be traded on a public stock exchange thereafter. Following exchange of 90% of the old iQP shares into iQ POWER Inc., a 100% merger will be enacted.

In the next 60 days both companies will engage in a detailed examination, known as Due Diligence, of the other company. Following satisfactory conclusion of the Due Diligence and share exchange and shareholder approval, the agreement will be binding on all parties. In order to understrike the sincerity of the agreement, a USD 300.000 break-up fee for both parties has been agreed.

Bob Sullivan, CEO of iQ Power Licensing, states, “this is a once-in-a-lifetime opportunity for iQP and its shareholders. The bundling of new business opportunities and the enabling of new business drivers by a large investment will create a company that is an attractive investment vehicle for large international institutional investors. Having a broad and experienced management team and a well-known executive with a sterling track record for creating shareholder value will ensure the success of the merged 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. 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 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

New Battery Factory and iQ Power technology licensee in the Middle East

 

  • Agreement reached for an iQ Power technology license and the consultancy and project management for new leading edge automotive battery factory
  • Integrated battery production and recycling plant with industrial company in the Middle East

Zug, Switzerland, 23 January 2018 – 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 an important development of interest to investors.

An agreement was reached with an experienced, privately-owned industrial company in the Middle East for an iQ Power technology license and consultancy for a new leading edge automotive battery factory. The agreement was reached already in late Dezember but announcement was held back due to uncertainty with local authorites. This uncertainty has been resolved today.

Construction of the new plant is already underway at the future factory location with building completion scheduled for the 2nd half 2018 and start of production in 2019.

The agreement, which is valid now, but can be rescinded if conditions dictated in the contract are not fulfilled, including the final approval of the iQ Power Licensing AG Board of Directors. Fulfillment of all conditions should be completed in March or April 2018, at which time, more details regarding the project will be released.

The agreement encompasses consulting and project management for the equipment and operation of an integrated leading edge lead-acid battery production including a recycling factory for used lead-acid batteries. After completion in 2019, the factory will be the most modern and most environmentally-friendly factory of its kind in the world. Several new technologies will be introduced for the first time, as well as many enhancements to state-of-the-art manufacturing methods.

Cornerstone of the battery factory will be the award-winning revolutionary iQ Power passive 360° electrolyte mixing technology, which has been proven to double the cycle life of flooded lead-acid starter batteries. The factory will provide advanced lead acid batteries for both passenger car and commercial vehicles. The factory is scheduled to produce 2 million batteries per year with expansion at a later date.

Environmental and economical savings will be achieved through the close integration of the lead-acid battery production under the same roof as the used lead acid battery recycling. The lead acid recycling factory will have a capacity for 30’000 metric tons of high quality lead per year. 

 

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 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

New CEO of South Korean Licensee and Change of Company Name

 

  • New CEO of South Korean Licensee is CEO of Canadian Company Discover Energy
  • South Korean Licensee iQ Power Asia Inc. to be changed into Discover Mixtech Manufacturing Corp.

 

Zug, Switzerland, 27 October 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 an important development of interest to investors.

As stated earlier, Bob Sullivan, the current interim CEO of iQ Power Asia Inc., who is also the CEO of iQ Power Licensing AG, will be followed officially at the iQ Power Asia shareholders’ meeting, which took place today on October 27th by Steve Nam as the new CEO of iQ Power Asia Inc.. Steve Nam is also the CEO of the company Discover Energy Inc., Richmond/Canada, who owns the majority of the South Korean company iQ Power Asia.

Steve Nam, who is a Canadian citizen and native South Korean and was formerly President of Hankook Tire North America, is uniquely qualified to lead the South Korean company and licensee of iQ Power Licensing AG to great success. Steve Nam has been in charge of the South Korean factory de facto for over one year and was instrumental in leading the company through the successful transition from financial restructuring.

At the same shareholders’ meeting today on October 27th, the shareholders decided to have the name of the factory iQ Power Asia Inc. in South Korea changed into Discover Mixtech Manufacturing Corp.. The new company name will have incorporated the product brand name `Mixtech´ of Discover’s new mixing technology automotive batteries.

“Re-naming the South Korean manufacturing company after their own product brand indicates a strong commitment and support of Discover Energy in the future of the built-in mixing technology of iQ Power Licensing”, stated Bob Sullivan.

Increased marketing activities of Discover is supporting the current production capacity increase of the South Korean factory, where a new production line is underway.   

 

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 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

Korean Licensee iQ Power Asia Inc. now under own control again

  • The South Korean Licensee iQ Power Asia Inc. officially emerges from Re-Structuring and can now operate fully under own control again  

Zug, Switzerland, 31 July 2017 – 12:10 p.m.  – 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 an important development of interest to investors.

The licensee factory of iQ Power Asia Inc. in South Korea has officially and successfully emerged from Financial Re-structuring. Today the Court of Gwangju has given the approval to the petition to graduate from Rehabilitation in writing to iQ Power Asia. The decision paves the way for full control of the company by Discover Energy Group.

With full control, the new owners will now be able to more quickly expand and upgrade operations and capacity at the factory. As noted previously, several new battery sizes are in planning and deliveries to new markets will occur throughout 2017 and 2018.

It is anticipated that the current interim CEO of iQ Power Asia, who is also the CEO of IQ Power Licensing AG, will formally be replaced and followed by an executive from Discover Energy Group at the next iQ Power Asia shareholders’ meeting.

 

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 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

iQ Power Licensing announces new business area of consulting services

  • iQ Power Licensing offers to organize and manage the building of environmentally-friendly battery factories with leading edge technologies
  • Focus on consulting, sourcing and project coordination of most competitive production methods and equipment
  • Marketing of iQ Power`s innovative mixing technology is part of the extended portfolio

Zug, Switzerland, 11 July 2017 - 11:20 a.m.  – 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 and winner of the GreenTec Awards 2017 announces a new business area.

Using the experience of staff and cooperating battery and facility experts and the knowledge in environmentally-friendly technologies, iQ Power Licensing AG will be offering to consult the start-up and modernization of battery factories in developing countries by offering consulting, sourcing and project coordination. The factories will have the innovative iQ Power technology integrated from the beginning of operations, which will provide better efficiency in the production.

iQ Power Licensing AG will not only offer consultation for complete turn-key factories, but will also consult on individual processes and new methods in lead battery recycling, if necessary. iQ Power Licensing AG will not involve itself in the building or manufacture of equipment, but rather sees itself as an integrator of latest technologies for innovative equipment and of latest and innovative technology companies.

“The factory and production equipment that we source from our carefully selected suppliers is the most competitive and advanced production equipment of its kind in the world for the manufacture of next generation automotive batteries”, says Bob Sullivan, CEO of iQ Power Licensing.

For example, by using new innovations, the new battery factories can reduce the time of production by half or save substantially on energy, thereby reducing working capital needs. Using iQ Power’s innovative electrolyte mixing technology of simple plastic passive mixing elements, the cycle stability and life-time of flooded vehicle batteries can easily be doubled, thereby reducing not only cost of ownership but also saving resources.

The factory and production equipment will be independently selected from suppliers to assure the most competitive production equipment of its kind for the manufacture of next generation automotive starter batteries for vehicles.

Bob Sullivan, CEO of the company, stated: “Our main effort will remain concentrated on the iQ Power mixing technology and other innovative technologies. However, this long-term new initiative can, over time, add not only to the bottom line of the company, but also to the recognition of iQ Power Licensing in the battery industry.”

 

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 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

iQ Power Licensing AG publishes Annual Results 2016

  • Korean licensing partner is back to normal production operation, further expansion of production capacity
  • Revenue from license business more than doubled
  • First deliveries to automotive manufacturers (OEM) in Brazil
  • Earnings position from operating business improved by CHF 0.5 million
  • One-time accountable impairment loss in the rehabilitation phase of the Korean licensing partner

 

Zug, Switzerland, May 20, 2017 - 00:41 a.m. - iQ Power Licensing AG (ISIN: CH028536338, WKN: A14M1C, Symbol: iQL), the developer and marketer of technologies and their licenses for environmentally friendly and technologically leading starter batteries for motor vehicles, publishes the figures for the fiscal year 2016 and gives an overview of the current business situation.
 

Business Operations
In the year 2016, iQ Power Licensing AG continued its intensive collaboration with the new strategic partner Discover Energy Corporation (DEC) from Vancouver / Canada.

The strategic partner DEC intensified its commitment to the Korean licensing and production partner iQ Power Asia Inc. as well as to iQ Power Licensing AG through extensive financial investments in order to combine the iQ Power technology with the new DEC owned brand “Mixtech” for all major markets. In addition, Discover Energy Corporation made major investments in the expansion of the Korean plant and invested millions of dollars to stabilize and expand the production of the Korean factory. Discover Energy's commitment underscores the confidence of DEC in the future of iQ Power Licensing AG, its technology and the Korean factory, DEC is now the dominant shareholder in Korea and the largest single shareholder (18%) in iQ Power Licensing AG.

Great efforts and investments were made in 2016 to expand the product portfolio from nine battery models to 25 models. In addition to the new types of starter batteries, the Korean factory in 2016 focused on the introduction of a complete product line of commercial vehicle batteries for the North American market which will be launched in 2017. At present, the vast majority of batteries from the Korean license partner's production are sold in North America.

The year 2016 also marked the beginning of the production of the first batteries with iQ-Power technology for use by a major automobile manufacturer (OEM). Moura Baterias S.A. as the largest battery manufacturer on the South American continent, delivered the first batteries for OEM use. This was preceded by very long investment delays by automobile manufacturers in South America, caused by the economic and political crisis in Brazil.
 

Financial Results
Revenues from the operating business of iQ Power Licensing AG doubled in 2016 to CHF 0.63 million (2015: CHF 0.27 million). However, due to unforeseen production bottlenecks in the second half of 2016, IQPA was not able to keep pace with the rapidly growing orders. The increase in sales was therefore lower than originally expected. These bottlenecks were eliminated at the end of the second half of 2016 by corresponding investments in machinery and equipment.

The results from operations in 2016 showed an improvement of CHF 0.5 million compared to the previous year (2016: minus CHF 1.7 million versus 2015: minus CHF 2.2 million). The improvement is the result of higher revenues as well as lower costs for patents.

As already reported at the beginning of this year, the restructuring phase of the Korean licensing partner resulted in an dilution-related non-cash write-down of CHF 2.3 million (impairment loss) of the valuation of assets of the iQ Power Licensing AG in iQ Power Asia for the year 2016, which was necessary as part of the restructuring program. Details on this are explained in the company's annual report 2016. As a result, the total loss of the company for the year 2016 amounts to minus CHF 4.3 million (2015: minus CHF 2.5 million).

The equity of the company decreased from CHF 1.9 million to CHF 1.5 million at the end of the financial year. The decrease is primarily due to the accounting loss resulting from amortization of the asset values in iQ Power Asia Inc. as well as a lower than expected results from license revenues. The equity ratio remains satisfactory at 29% (2015: 38%). The liquidity of the company also remains satisfactory with a cash balance of CHF 0.9 million at the end of 2016.

The North American licensee began with a limited sales of batteries with iQ Power technology. However, the batteries were acquired by customers of Discover Energy in North America, which is why there is no additional license revenue from this limited business, since the revenues are included in the license payments from the Korean partner.
 

Outlook for 2017
Through intensive cooperation with the strategic partner Discover Energy and the establishment of a stable and efficient production as well as a growing sales of the Korean factory iQ Power Licensing AG has created a sustainable and rising sales base. The main focus of the activities in the first half of the year 2017 has been on the growth and stability of the licensee in Korea, as this is the fastest way to achieve rapid revenue growth. In addition to this, further activities are now being intensified during 2017 in order to tap additional new sources of income.

In January 2017, the first license fees were received from the Brazilian licensee. A moderate growth in these revenues is expected during the year. No significant revenue is expected by the licensee in North America for 2017.

Revenue from license revenues from the Korean licensing partner for 2017 will be significantly higher than in 2016, as the capacity of the plant continues to grow and expand. Management expects a positive operating cash flow in 2017. Overall, the management of iQ Power Licensing AG sees the developments in 2017 very positively.

 

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 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

 

Download Summary Consolidated Financial Statements 2016

Discover Energy Group increases share in iQ Power Licensing AG

  • The Discover Energy Group executes mandatory convertible bond of EUR 2.56 million in iQ Power Licensing AG
  • Discover Energy Group (DEG) converts the approved and reported mandatory convertible bond in the amount of EUR 2.56 million including interest on April 30, 2017.
  • Growing commitment of the Discover Energy Group increases their stake in iQ Power Licensing AG (IQPLAG) from around 7 percent to 18.5 percent
  • The increased shares owned by DEG also strengthens the equity base of IQPLAG

 

Zug, Switzerland, 07 April 2017 – 10:15 a.m. – 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 substantial strong commitment from its strategic partner Discover Energy towards iQ Power Licensing AG.

The Discover Energy Group (DEG), as a strategic partner and investor in iQ Power Licensing AG, has subscribed a mandatory convertible bond in the amount of EUR 2,552,500 approved and reported by the Board of Directors of iQ Power Licensing AG (IQPLAG) in mid-January this year. The subscription reiterates the strong commitment of the Discover Energy Group to iQ Power Licensing AG. As agreed, DEC will convert the subscribed bond on 30 April 2017. At the same time, the share of DEG in iQ Power Licensing AG increases from just under 7 percent to 18.5 percent.

In mid-January this year iQ Power Licensing AG reported on the application of the Discover Energy Group to the convertible bond as well as its approval by the Board of Directors. The terms are identical to those of the existing convertible bond with a conversion price of EUR 0.06 per share.

By subscribing the bond and its subsequent conversion, the Discover Energy Group not only significantly strengthens its commitment in iQ Power Licensing AG but at the same time enforces the equity base of the Swiss company.

Bob Sullivan, CEO of iQ Power Licensing AG, welcomes the increased commitment of the Discover Energy Group as a strategic partner. At the same time, Sullivan stressed that any other capital increase in 2017 is not planned.

 

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

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 – 04:40 p.m. – 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.

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

Zug, Switzerland, 13 October 2016 – 02:00 p.m. – 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 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.

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.

Financial results for 2nd half 2015 and full year

  • 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 – 08:50 p.m. – 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.

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 – 12:10 p.m. – 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.

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 – 06:30 p.m. – 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.

iQ Power Licensing announces further progress at JV factory, iQ Power Asia, 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 (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 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

Zug / Gwangju, South Korea, 21 May 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 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 Licensing AG announces financial results 2014: Growing and sustainable revenue

  • License Income of CHF 1 million (2013: EUR 15.000)
  • Improved Profitability of CHF 0,2 Mio. loss (2013: EUR 1,7 Mio. loss)
  • Growth in Revenues through Licensee Discover Energy
  • Milestone in OEM business through contract with Moura Baterias, Brazil
  • Financial Reporting changed to Swiss Franc and Swiss Accounting rules
  • Situation with Korean Licensee remained unclear

Zug/Schweiz, 30. April 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 the annual report for 2014.

Financial Results 2014
The start of sales by Discover Energy and signing of the License Agreement with the Brazilian battery manufacturer, Moura Baterias led to significant license income of CHF 1 Million (2013: EUR 15.000). Due to the successful capital increase and stable profitability in 2014 the Total Equity increased to CHF 2.2 Million (2013: 1,0 Million) and the Equity Quota rose to 44% (2013: 27%). Cash-on-Hand at year-end was an adequate CHF 458.000.

The upward trend in earnings since 2012 continued in 2014 with losses reduced to CHF 0,2 Million (2013: EUR 1,7 Million), which were due mainly to higher revenues. Operating costs were stable at CHF 1,6 Million (2013: EUR 1,7 Million). Included in the costs were one-time write-downs for license receivables from the Korean licensee and receivables for engineering services to the American licensee totaling together CHF 0,3 Million. Operational costs are divided fairly evenly between R&D, Reporting and Listing, and General Administrative costs. All known risks were taken into account.

Operations Report
In 2014 Discover Energy initiated sales of batteries with iQ Power technology to new and existing customers following receipt of a license in 2013. Initial market reaction was positive and Discover Energy has been able to regularly add new customers.
Another meaningful milestone was the license agreement with the OEM-oriented battery manufacturer, Moura Baterias. Moura is the largest battery manufacturer in South America. The contract included a significant upfront royalty. More importantly, the cooperation will be the bridgehead into OEM usage of the iQ Power technology.
During the whole of 2014 the situation was unclear at the Korean licensee, iQ Power Asia Inc., both in terms of financial stability as well as operations. In February 2015 the long-time but controversial CEO was replaced at the request of the Board of Directors and Bob Sullivan, CEO of iQ Power Licensing AG was named new CEO. The new CEO is tasked with restructuring and restarting the financially troubled company. Shareholders of iQ Power Asia solidly support the new CEO and are convinced that the company still has a bright future.
The self-announced sales guidance for 2014 from the North American licensee was completely missed. No significant license income was reported for 2014. iQ Power Licensing management is studying the justification of continuing the business relationship as it now exists.
 
Outlook 2015
With the introduction of the strategic partner, Discover Energy, iQPL has established a base for growing and stable license sales income. The focus of activities in the first half of 2015 will be the restart of the factory in Korea, which represents the best and fastest chance for license income revenue. Management anticipates difficult discussions with the North American licensee due to the continued disappointing license income. In the second half of 2015, the focus will swing to rejuvenating license activities in Europe with both aftermarket and OEM-oriented battery manufacturers.
 
Management views the overall situation as very positive for 2015.

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.

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

Zug/Switzerland, 23 February 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 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.

 

Frankfurt Stock Exchange announces end of trading of old shares

  • End of trading of the old common shares on the Frankfurt Stock Exchange due to Reverse Merger and end of iQ Power AG
  • Trading of new shares should begin in the week of 16.February.

Zug/Switzerland, 02 February 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 Frankfurt Stock Exchange has ended trading for the common shares.

Following the merger of iQ Power AG into its 100% subsidiary, iQ Power Licensing AG, new shares will be issued for trading on the Berlin Stock Exchange and the old shares in Frankfurt and Berlin will be de-listed.

Management has been informed that the share register should be able to create the new named shares in the week of February 16th.

The new shares will be booked automatically in the share accounts and the old shares will be returned and disposed. The new ISIN and stock abbreviation of the new shares will be made at the time of the new listing.

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.February.

Zug/Switzerland, 02 January 2015  –  iQ Power AG (ISIN: CH020609688, 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 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

Zug/Switzerland, 28 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 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.

Board of directors convenes extraordinary general meeting to decide on parent-subsidiary merger

  • Merger of iQ Power AG with the wholly owned subsidiary iQ Power Licensing AG
  • Decision to be taken by extraordinary general meeting on 27 January 2015
  • 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

Zug/Switzerland, 22 December 2014 – 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, is convening an extraordinary general meeting to approve the merger contract entered into by iQ Power AG and iQ Power Licensing AG. The extraordinary general meeting will be held at 10 a.m. on 27 January 2015 at the premises of the Migros Klubschule, Metalli-Gebäude, Industriestrasse 15, Zug, Switzerland. In addition to the resolution on the merger and there will be a resolution for the set-off of capital contribution reserves in the amount of CHF 14,575,665.57 through loss carryforwards which is an accounting prerequisite for the merger are the only items on the agenda. The shareholders can vote by mail in which they appoint the independent proxy to represent them.

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. Details can be viewed under the Questions and Answers to be published on the company website shortly.

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.

The resolution on the merger requires a two thirds majority of the voting rights as well as a simple majority of the voting rights based on the par value held by the shareholders taking part or represented at the extraordinary general meeting. At the extraordinary Shareholders’ meeting of iQ Power AG, the vote will be limited only to the approval of the merger contract that has been concluded. Countermotions on the content will not be allowed.

The details of the merger will be sent out with the invitation to attend the general meeting. The merger contract, the merger report, the audit report, the audited interim statements as at 15 October 2015 and the audited annual financial statements and annual reports of the last three financial years can be reviewed at the registered office of the company and are posted on the company’s website. Answers to some of the key questions concerning the merger will also be published on the iQ Power AG website. A video with the company’s CEO on this subject is also planned.

With the publication of this ad hoc announcement, iQ Power AG discloses at the same time the granting of the rights of the convertible bond ISIN DE000A1GXE20 pursuant to the issuing prospectus of 16 November 2011. Further information can be obtained by e-mail from investor-relations@iqpower.com.
 
The Management Board.

Leading battery plastic manufacturer Accumalux will produce and sell iQ Power s innovative battery mixing units

  • iQ Power Licensing AG enters into production and sales cooperation with leading battery plastic manufacturer, Accumalux Group, Luxembourg.
  • The cooperation is for the manufacture and sales of plastic parts for the European Truck and Commercial Vehicle battery market in Europe using the patented technology of iQ Power.

Zug/Luxembourg, 2 December 2014 - iQ Power announces the signing of a cooperation agreement with Accumalux Group, Luxembourg, for the manufacture and sales of plastic parts for the European Truck and Commercial Vehicle battery market in Europe using the patented technology of iQ Power.

The expertise of Accumalux Group in manufacturing plastic parts for batteries and Accumalux’s experience and contacts to all battery manufacturers, coupled with the iQ Power technology and the Accumalux OEM qualified battery cover, promises to accelerate the sales and marketing of the iQ Power technology by both commercial battery manufacturers and commercial OEM vehicle manufacturers.

Truck and heavy-duty vehicles, especially for the target market of Europe, have much higher usage for the battery than passenger car vehicles due to the need for electrical power during idling and required driving pauses. Modern commercial vehicles have a large amount of electrical consumers that causes deeper discharge of the batteries. The discharge creates a stratification, which in turn leads to sulfation and, ultimately, failure of the battery.

The patented iQ Power technology eliminates the stratification in an inexpensive, effective and environmentally-friendly method using plastic parts as passive mixing elements.

Accumalux Group, with manufacturing facilities in Luxembourg, Australia, Czech Republic, Bulgaria and Russia is one of the leading independent suppliers of battery plastic parts to the European battery industry. Accumalux Group is a modern leading supplier for all plastic component needs for the automotive, industrial and motive power battery industry. Its customers are mostly manufacturers of automotive batteries as well as battery backup systems for computers, railways, nuclear power stations, etc. Specializing in injection moulding of Polypropylene SLI/AGM and industrial SAN, PS and ABS battery sets, its production covers the complete European ranges, some U.S. and Japanese types as well as special models.

Accumalux uses inert and environmental friendly thermoplastics. Out of respect for the environment, Accumalux invested in recycling research in order to reprocess discards and reuses almost 100% of its plastic waste.

Accumalux possess a patented battery cover for commercial applications using a unique gas entrapment and flame arrestor technology, which is certified for use by commercial vehicle OEMs.

The first production of the iQ Power plastic parts for commercial vehicles at Accumalux is scheduled approximately for mid-2015. No sales targets have been set as to date.

iQ Power AG reports 9 months results for 2014

  • Net Revenue of EUR 761.000; Loss after tax of EUR 365.000
  • Results improved by 70% versus same period 2013

Zug/Switzerland, 18 November 2014 - iQ Power AG (ISIN: CH0020609688 WKN: A0DQVL / Symbol: IQPB, ISIN: CH0199540599 / 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, has published its figures for the first 9 months of 2014.

For the reporting period, 1. Jan – 30. September 2014 the net revenues totaled EUR 761k versus EUR 12k in the same period 2013. The large increase was due to the start of sales of the strategic licensee, Discover Energy and the conclusion of the license contract with the Brazilian licensee including an upfront royalty payment.

The loss after tax was EUR 365k versus a loss of EUR 1.153k for the same period 2013. Total expenses to date of EUR 1.1 million were the same as in the comparable period in 2013. The higher income and same level of expenses were the direct result of the new strategy adopted by the company in 2012.

The current assets as of 30. September 2014 were EUR 1.4 million versus EUR 0,3 million as of 31.12.2013. The long-term assets as of 30. September 2014 were EUR 3.4 million equivalent to EUR 3,4 million as of 31.12.2013. Current liabilities sank to EUR 1.6 million from EUR 2.2 million at the end of 2013. Long-term debt of EUR 0,6 million was the same as the end of 2013. Total assets were EUR 4,7 million (vs. EUR 3,8 million per 31.12.2013). Equity amounted to EUR 2,5 million (vs. EUR 1,0 million per 31.12.2013) or 55 % of the total debt-equity mix, up from 27% at year-end 2013. Cash improved to EUR 0,8 million from EUR 0,1 million per 31.12.2013.

All known and verifiable risks were considered in the financial statements.
Due to the lean cost structure and improved market position of iQ Power AG as Licensor, the company is well-positioned for further good business developments in the upcoming months ahead.

 
Management
 
Further information can be found in iQ Power AG’s 2013 Annual Report, which is now available to download from iQ’s website at www.iqpower.com.

Discover Energy International Limited (Discover) signs supply agreement with iQ Power Asia (iQPA)

  • Production of the first order has been completed.

Hong Kong, 02 September 2014  –  Discover Energy International Limited, Hong Kong, announces that it has signed a supply agreement with iQ Power Asia to produce batteries in accordance with Discover Energy’s licensing agreement with iQ Power AG. All of the batteries will be made with DISCOVER MIXTECH, which utilizes iQ Power AG’s patented technology.

Discover has been monitoring the product test results as the iQ Power Asia facility gets re-commissioned and is happy to report that the product is ready to go to market. Discover’s first order was successfully produced and will be distributed under the company’s Eco and Eco Premium brands.

Despite unresolved fundamental organizational issues at iQ Power Asia, Discover Energy and iQ Power AG are proactively working to provide solutions that offer iQ Power Asia the best opportunity for long-term success. “With the Supply Agreement in place Discover is in a position to help ensure that iQ Power AG’s royalty rights are observed and met by iQPA,” said Kevin Loman, Director, Discover Energy International Limited, Hong Kong.

Discover Energy per the terms agreed to in the Supply Agreement will be onsite at the factory to review all manufacturing processes, maintain Quality Assurance, monitor management best practices, and provide ongoing oversight to protect the interests of all parties involved.

Q Power AG Reports Half-Year Results for 2014

  • First time ever Breakeven  
  • Net Revenue of EUR 551.000  /  Profit after tax of EUR 5.000
  • Results improved by EUR 786.000 versus same period 2013
  • New strategy bears first fruits

Zug/Switzerland, 04 August 2014  –  iQ Power AG (ISIN: CH0020609688 WKN: A0DQVL / Symbol: IQPB, ISIN: CH0199540599 / 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, has published its figures for the first half-year 2014.

For the reporting period, 1.January - 30.June 2014 the net revenues totaled EUR 551k vs EUR 12k in the same period 2013. The large increase was due to the start of sales of the strategic licensee, Discover Energy, and the conclusion of the license contract with the Brazilian licensee including an upfront royalty payment.

The higher income and lower costs were the direct result of the new strategy adopted by the company in 2012. The profit after tax was EUR 5k versus a loss of EUR 781k for the same period 2013.

The current assets as of 30.June.2014 were EUR 1.8 million versus EUR 0,3 million as of 31.12.2013. The long-term assets as of 30.June.2014 were EUR 3.3 million roughly equivalent to EUR 3,4 million as of 31.12.2013. Current liabilities sank to EUR 1.8 million from EUR 2.2 million at the end of 2013. Long-term debt increased slightly from EUR 0,6 million to EUR 0,8 million from the end of 2013. Total assets were EUR 5,0 million (vs. EUR 3,8 million per 31.12.2013). Equity amounted to EUR 2,5 million (vs. EUR 1,0 million per 31.12.2013) or 50 % of the total debt-equity mix, up from 27% at year-end 2013. Cash improved to EUR 0,8 million from EUR 0,1 million per 31.12.2013.

All known and verifiable risks were considered in the financial statements.

Due to the lean cost structure and improved market position of iQ Power AG as Licensor, the company is well-positioned for further good business developments in 2014.

iQ Power and Leading Battery Manufacturer Moura Sign Long-Term License Contract

  • Long-term License Agreement with largest battery manufacturer in South America following pre-agreement.
  • Exclusivity for South America and Caribbean
  • New type of Enhanced Flooded Battery (EFB) with iQ Power Mixing Technology for OEM start-stop batteries
  • Applications also possible for heavy duty commercial and truck market
  • Upfront Royalty to be paid

Zug/Switzerland, 02 July 2014  –  iQ Power AG (ISIN: CH0020609688, German Securities Code Number (WKN): A0DQVL / Symbol: IQPB, ISIN: CH0199540599 / German Securities Code Number (WKN): A1J7TW), a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licences in these technologies, announces the signing of a long-term license agreement with Acumuladores Moura S.A., Belo Jardim, Brazil.

The license agreement secures Moura the exclusivity with the patented iQ Power electrolyte mixing technology for lead-acid batteries produced in South America and the Caribbean. The agreement followed a two year development under a preliminary agreement between the two companies.

Moura will pay an upfront royalty plus a license fee per battery. Strict confidentiality was contractually agreed as to the amount of upfront royalty and license fee per battery. The amount of royalties paid per battery per the contract assures that there will be no competitive disadvantage to other licensees.

The goal of Moura is to develop a superior flooded lead-acid battery (EFB) for sale to OEMs for the new generation of Start-Stop engines (micro-hybird), which will be required to meet new environmental standards enacted by the Brazilian government. The passive mixing device will aid the already high-quality EFB developed by Moura to achieve longer life and better cycle times. The EFB with iQP technology will be on competition with the more expensive and temperature-sensitive AGM Batteries now used by OEMs for Start-Stop engines. Beyond this application, Moura will test the iQP technology for use in heavy duty commercial applications, where cycle time is a critical factor. In addition, following OEM use, the batteries will be sold to dealers as original equipment spares (OES).

The privately held company Acumuladores Moura S.A. is the largest battery manufacturer in South America, with several large battery factories in Brazil and Argentina and producing over 6,5 million batteries per year. Moura has more than seventy commercial distribution centers and is the largest supplier to OEMs in South America, with a market share of 50% or more. Customers of Moura include the world’s biggest auto manufacturers such as GM, Volkswagen, Ford, Iveco, and FIAT-Chrysler among others. The company has won many excellence awards and produces all types of batteries including marine, UPS, motive power and solar applications.

Bob Sullivan, CEO stated, “The agreement is significant due to the fact that Moura will achieve a sustainable long-term competitive advantage for the micro-hydrid engines through having the only complete circulation mixing technology available anywhere in the world. These batteries will be the product of choice for the majority of micro-hybrids, which will be the dominant engine type for passenger cars in the coming years. The homologation in South America will set a standard allowing for quick acceptance by all manufacturers worldwide.”

The passive mixing elements allow for a homologous electrolyte mixture in the battery at all times. Batteries without such a device experience stratification, i.e., heavier acid separates itself from the water over time at the bottom of the battery case. This results in sulfation and increases the internal resistance to re-charging. These conditions are a primary reason for battery failure. The use of passive, non-moving, inexpensive plastic parts is a low cost and highly effective way to prolong the life and speed re-charging of the battery.

The new generation mixing device iQP-2 is universally applicable to all passenger car and heavy-duty commercial batteries and requires no investment or changes to the production on the part of the battery factories. iQ Power owns all tooling necessary and can deliver the parts on a piece-by-piece basis to all licensees. The patent for the device iQP-2 has received complete preliminary approval from the European Patent Office and will be nationalized worldwide over the coming months. 

Listing and Trading of the new iQ Power AG Voting and Preference Shares on the OTC market of the Berlin Stock Exchange

  • The new Preference Shares (stock ID number: A1J7TW) has been listed by the Berin Stock Exchange and will start trading this week.
  • The shares carry the same dividend rights as the common shares and similar voting rights.

Zug/Switzerland, 30 April 2014  –  iQ Power AG (ISIN: CH0020609688, German Securities Code Number (WKN): A0DQVL / Symbol: IQPB, ISIN: CH0199540599 / German Securities Code Number (WKN): A1J7TW), a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licences in these technologies, announces the listing of the Voting and Preference Shares on the OTC market of the Berlin Stock Exchange as of 30.June.2014. Marketmaker for the shares is Renell Wertpapierhandelsbank AG.

The preferred shares carry the exact same dividend rights and similar voting rights as the common shares.

iQ Power AG publishes interim report in first half of 2014

  • First revenue generated following strategic reorientation
  • Substantial improvement in earnings to EUR ‑0.1 million (Q1 2013: EUR ‑0.5 million, Q1 2012: EUR ‑0.9 million)
  • Streamlined cost structure and strategic reorientation form the basis for a positive outlook for 2014

Zug/Switzerland, 15 May 2014 – iQ Power AG (ISIN: CH0020609688, German Securities Code Number (WKN): A0DQVL/symbol: IQPB, ISIN: CH0199540599/German Securities Code Number (WKN): A1J7TW), a developer and marketer of technologies for environmentally friendly and technologically leading starter batteries for motor vehicles and licences in these technologies, has published an interim report in the first half of 2014.

The company’s figures show an increasingly positive picture. Comprehensive income improved significantly to EUR ‑0.1 million in the first quarter, up around EUR 0.4 million on the same period of the previous year (Q1 2013: EUR ‑0.5 million, Q1 2012: EUR ‑0.9 million). This development resulted from reduced costs in the context of the new strategic orientation of the company, as well as initial income from the first business with the new strategic partner. Costs were also reduced by non-recurring prior-period income of around EUR 0.1 million for restructuring costs that did not materialise. Ongoing costs of around EUR 0.3 million were in line with expectations.

The initial business with the new strategic partners, which only began in the period under review, resulted in consolidated revenues of EUR 43,000 for iQ Power AG in the first quarter of 2014 (Q1 2013: EUR 11,000).

Total assets at 31 March 2014 amounted to EUR 3.8 million and were unchanged as against 31 December 2013, while equity amounted to EUR 0.9 million at the end of the reporting period (31 December 2013: EUR 1.0 million). This resulted in an equity ratio of 23% (31 December 2013: 27%).

Following the strategic reorientation of the company as a dedicated technology licensor, the cost structure has been streamlined significantly. In the first quarter of 2014, iQ Power started production and initiated sales activities for its new generation of components (iQP-2) for electrolyte mixing in batteries. The new design and its functions are patented. The new construction allows more efficient and effective functionality with improved battery properties as well as lower production costs. This has significantly increased the attractiveness of iQ technology for existing and potential licensees. The manufacture and sale of the components required for the use of the iQ technology are under the direct control of iQ Power and represent a further source of revenue in addition to the growing licence income.

In light of the increased revenue of its licensees using licensed products, iQ Power AG is anticipating a further improvement in its own revenue and earnings situation in the 2014 financial year as a whole.
 
The Management Board
 
Further information can be found in the iQ Power AG interim report in the first half of 2014, which is now available for download here.

iQ Power AG announces results of capitalisation measures and publishes 2013 annual report

  • EUR 1.43 million in proceeds from the capital increase and exercise of option rights
  • Revenues low for the year 2013
  • Total earnings for 2013 improve following elimination of one-off restructuring costs
  • All known risks taken into account in the 2013 consolidated financial statements
  • Positive outlook thanks to new licence income since Q1 2014
     

Zug/Switzerland, 30 April 2014 – iQ Power AG (ISIN: CH0020609688, German Securities Code Number (WKN): A0DQVL / Symbol: IQPB, ISIN: CH0199540599 / German Securities Code Number (WKN): A1J7TW), a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licences in these technologies, has published its figures for the 2013 financial year and announced the results of the most recent capitalisation measure.

Capitalisation measure

Following the subscription right offer dated 3 April 2014 with the private placement and exercise of option rights, voting and preferred shares with a gross value of EUR 1.43 million have been subscribed. Proceeds in the amount of EUR 1.18 million were allocated to the capital increase (subscription of 92.5 million voting and preferred shares) and EUR 0.25 million to the exercise of 18.1 million option rights.

The total number of outstanding shares for iQ Power AG increased to some 879.4 million, including 456.9 million common shares (ISIN: CH0020609688) and 422.5 million voting and preferred shares (ISIN: CH0199540599).

The results do not include additional subscriptions that are pending and legally binding. These were paid on time, but the funds have not yet been deposited to the company's account due to technical problems at the bank.

Following the capital increase, the application for stock listing of the new voting and preferred shares (WKN A0DQVL / ISIN CH0199540599) on the Baden-Württemberg Stuttgart exchange has been formally revised. This will not cause a further time delay.

2103 annual report

In the 2013 financial year, consolidated revenues were EUR 15,000 (prior year: EUR 151,000). As part of its strategic reorientation, iQ Power AG has not been involved in battery production, trading and sales since the 2012 financial year. The development of licence revenue was impacted by a weaker than expected start-up at the licensee Smart Battery, USA and years of slowdown in production at the licensee iQ Power Asia, South Korea. Sales operations at new licensee Discover Energy resulted in positive, continuous revenues only after the reporting period – in the first quarter of 2014.

Earnings for the year improved significantly, from a loss of EUR 4.4 million in the prior year to EUR -1.7 million in 2013. The reason for the improvement was the elimination of one-time restructuring costs. In spite of extra expenses for development and manufacture of injection moulding tools for producing iQP-2 mixing components, operating costs increased only slightly to EUR 1.7 million (2012: EUR 1.5 million).

Overall, the lower losses, the redemption of the convertible bond for 2010–2013 and two capital increases, along with the restructuring measures, had a major effect on the balance sheet figures. Current assets amounted to around EUR 0.3 million as at 31 December 2013 (previous year: EUR 1.2 million), while non-current assets were essentially unchanged year-on-year at EUR 3.4 million as of the balance sheet date (previous year: EUR 3.6 million). Current liabilities declined to EUR 2.2 million (previous year: EUR 2.8 million), while non-current liabilities decreased from EUR 0.9 million in the previous year to EUR 0.6 million. Reported equity amounted to around EUR 1.0 million as at 31 December 2013 (previous year: EUR 1.1 million), while total assets amounted to EUR 3.8 million after EUR 4.8 million in the previous year. This resulted in an equity ratio of 27%. Cash and cash equivalents amounted to EUR 0.1 million at the reporting date (previous year: EUR 1.0 million).

The 2013 consolidated financial statements of iQ Power AG take into account all known risks to which the Company is exposed.

In light of the successful realignment of iQ Power AG as a technology developer and licensor, a vastly streamlined corporate and cost structure, reinforcement of the capital base with the most recent measures and the licence income since the first quarter of 2014, the company believes that it has laid the foundations for successful future development and is confident about the outlook for the rest of 2014.

 
The CEO

Deadline for free options and performance of capital increase for preference shares from authorised capital resolved

  • Exercise period for options (ISIN: CH0210038169): from 8 April 2014 to 22 April 2014
  • Capital increase of up to 154 million new voting and preference registered shares with a nominal value of CHF 0.01 per share (CH0199540599) at subscription price of EUR 0.01275

Zug/Switzerland, 3 April 2014 – The Board of Directors of iQ Power AG (ISIN: CH0020609688, German Securities Code Number (WKN): A0DQVL/symbol: IQPB, ISIN: CH0199540599/German Securities Code Number (WKN): A1J7TW), a developer and marketer of technologies for environmentally friendly and technologically leading starter batteries for motor vehicles and licences in these technologies, has stipulated an exercise period for the options with the ISIN CH0210038169. The bearers of these options can subscribe to new shares (one voting and preference registered share per option) in the period from 8 April 2014 to 22 April 2014 at a subscription price of EUR 0.014 each. The option exercise notice required for this will be available for download on the homepage of iQ Power AG for the above period.

In addition, on the basis of the authorization in Article 3a of the Articles of Association, the Board of Directors has resolved to increase the share capital by up to CHF 1,540,000 by issuing up to 154,000,000 voting and preference registered shares with a nominal value of CHF 0.01 per share to be paid up in full. The new voting and preference shares will have full dividend rights from 1 January 2013.

Existing shareholders will be granted an indirect subscription right in proportion to their existing equity interest. The subscription ratio is 3.65 to 1 for registered shares with a nominal amount of CHF 0.03 each (ISIN CH0020609688) and 10.93 to 1 for voting and preference registered shares with a nominal amount of CHF 0.01 each (ISIN CH0199540599). This means that ownership of 3.65 registered shares or 10.93 voting and preference registered shares of iQ Power AG will entitle the owner to subscribe for one new voting and preference registered share at a subscription price of EUR 0.01275 per voting and preference registered share. The subscription period is also from 8 April 2014 to 22 April 2014. The number of pre-emption rights attributable to shareholders will be determined by their holdings of registered shares and voting and preference registered shares at the close of trading on 7 April 2014. To exercise their pre-emption rights, we ask that shareholders issue their custodian bank with corresponding instructions using the subscription order form provided by the custodian banks.

Above and beyond their subscription rights, shareholders can also submit an additional binding subscription order for an unlimited number of new voting and preference registered shares (oversubscription) allowing them to subscribe for new voting and preference registered shares that are not subscribed for as part of the indirect offer for subscription. However, this does not grant a legal right to allocation. New voting and preference shares not subscribed by existing shareholders can be offered to interested third parties by the company at the same conditions as part of a private placement during the subscription period.

The net proceeds from the capital increase will be used to procure tools, repay liabilities and strengthen iQ Power AG’s asset base, thereby improving its credit quality and liquidity position.

Further information can be found in the issue prospectus prepared in accordance with Art. 652a of the Swiss Code of Obligations, which will be available for download shortly on the homepage of iQ Power AG.

 
The CEO

iQ Power AG: Conclusion of Capital Increase and Payoff of Convertible Bond 2010

  • 61,3 million shares subscribed the latest phase of the rights issue and private placement
  • Total placement of the 1st tranche equals 74% of total (139.9 million shares)
  • Total subscription was approximately Euro 1.7 million (Euro 0.01275/share)
  • Re-payment of Convertible Bond 2010
  • Total number of shares common and preferred are now approx. 788.1 million
  • Listing of the new preference shares (WKN A1J7TW / ISIM CH0199540599) in Stuttgart
     

Zug/Switzerland, 03 December 2013 – iQ Power AG (ISIN: CH0020609688, German Securities Code Number (WKN): A0DQVL; ISIN: CH0199540599 / German Securities Code Number (WKN): A1J7TW), a developer and marketer of technologies for environmentally friendly and technologically leading starter batteries for motor vehicles and licences in these technologies, provides a status report on the 1st tranche of the capital increase and the convertible bond 2010.

In April 78.6 million shares were subscribed by existing shareholders through a rights issue (WKN A1J7TW / ISIN CH0199540599). After an extension of the private placement, the 1st tranche of the capital increase was concluded in November, 2013. In this timeframe, an additional 31.5 million shares were subscribed through a rights offering and approximately 30.0 million shares were subscribed through private placement. Together with the rights offer in April, this represents 74% of the 139.9 million shares offered for a total of Euro 1.7 million. The total number of common and preferred shares were thereby increased to 788.1 million.

As announced, following the registration in the commercial register, the outstanding bonds from the convertible bond 2010 (ISIN: CH0117571825, CH0117572393), which ran out on 31.October.2013, will be paid this week to remaining bondholders, including extra interest for the time of the payment delay.

The conclusion of the capital increase is the pre-requisite for the listing of the new preference shares (WKN A1J7TW / ISIN CH0199540599) fulfilled. As currently planned, the trading will take place on the Stuttgart Exchange following completion of all formalities.

During the capital increase of 2012, the Korean Consortium pledged a certain amount of all remaining shares from the rights issue. In November the Korean Consortium was able to fulfil this obligation.

Bull & Hatch Limited (Hong Kong) subscribed, through a Director of the company, to a six-figure Euro amount. The total subscribed did not equal the amount previously committed in the contract from December 2012. Due to the close working relationship with Discover Energy, iQ Power has decided not to negotiate this matter further.

New investments are possible in the future.