TMS Announces Execution of Binding MOU
Provides corporate update
Vancouver, British Columbia (FSCwire) - Targeted Microwave Solutions Inc. (TSXV: TMS) (“TMS”) is pleased to announce the execution, through its wholly owned subsidiary TMS Hong Kong, of a binding memorandum of understanding ("Memorandum") with Inner Mongolia Ming Da Investment Ltd. ("Ming Da"), to build a pilot installation (the "Facility") at an active coal operation in Xilinhaote, Inner Mongolia, in Northern China.
Pursuant to the Memorandum, the parties have agreed to a framework in which TMS will grant certain rights to use its technology in Inner Mongolia, and Ming Da will provide capital and technical expertise. The framework also contemplates royalty payments to TMS on any future commercial sales of facilities in the region.
Dr. James Young, CEO and chairman of TMS, stated: “Market validation of our technology is instrumental in securing commercial agreements for Wavedri®. By partnering with Ming Da, we have an exciting opportunity to validate, test and refine our technology at full scale under industrial conditions. It also permits the development of a near-term revenue stream. Importantly, because TMS will retain its intellectual property rights outside of Inner Mongolia, we can continue to seek parallel commercialization paths with other partners in other areas of the world and across different industries."
Ming Da is a private equity investment firm based in China that specializes in developing and financing coal mining and energy production projects in and around some of China's largest lignite coal basins. Ming Da has an active portfolio of investments with both private and state-owned enterprises. As part of its mandate, Ming Da is committed to investing in new technologies that have the potential to improve the environmental and economic footprint of coal mining and power production in Inner Mongolia.
The Memorandum remains subject to a number of closing conditions to be completed in or about July 2017, including completion of satisfactory due diligence, board approvals and the negotiation and execution of definitive documentation. No assurance is provided that the closing conditions will be satisfied in the time contemplated or at all.
While TMS continues to pursue commercialization activities, including the Memorandum, it continues to seek commitment for a near-term financing necessary to fund its working capital deficit and ongoing operations. If TMS is unable to secure the necessary funds, it intends to review available strategic alternatives to maximize the value of its technology.
TMS also announced that Mr. Jan Kindler is stepping down in his role as Chief Operating Officer effective June 27, 2017. Mr. Kindler has agreed to focus on business development opportunities for commercializing the technology, including the opportunities presented by the Memorandum.
TMS also announced today that it is seeking the necessary permits from the County for ongoing testing of materials at its commercial demonstration facility in King William, Virginia, following successful commissioning of its Generation 3.0 reactor. TMS expects to obtain the permits in the ordinary course as early as next week.
On behalf of the Board of Directors,
"Dr. James Young"
Chief Executive Officer and Chairman
+1 (778) 995 5833
About Targeted Microwave Solutions Inc.
Targeted Microwave Solutions Inc. is a clean technology company that designs and manufactures vertical WAVEdri® microwave reactors to dry and process coal, clay and biomass, including wood fibre. As a global leader in the advancement of microwave technology the Company’s mission is to provide the industry with a cleaner and more efficient technology solution, which replaces traditional industrial dryers and kilns, by eliminating toxic emissions, reducing energy requirements and conserving significant amounts of water at a lower capital investment.
The Company’s R&D and commercial demonstration plant in King William, Virginia is strategically located near several major industrial clay-based and biofuel manufacturers. The marketing and testing facility in Shanghai, China collects and analyzes material samples from nearby coal power plants and coal mines. The Company is a reporting issuer in Canada and is listed on the following stock exchanges:
| TSX-V: TMS | FRA: A2ACNT | OTCQX: TGTMF |
This news release contains certain statements which are, or may be deemed to be, "forward-looking statements". Forward-looking statements are statements that address or discuss activities, events or developments that we expect or anticipate may occur in the future. Forward-looking statements consist of statements that are not purely historical and, in this news release, include, without limitation, statements regarding future commercial sales and the receipt of any royalties therefrom, opportunities to validate, test and refine the TMS technology, the development of a near-term revenue stream and other commercialization opportunities, the availability of financing and of strategic alternatives for its technology and obtaining necessary permits for ongoing testing. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "projects", "will", "believes", "intends", "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements reflect the then-current expectations, beliefs, assumptions, estimates and forecasts of our management. Because forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors which are difficult to predict, our actual results, performance or achievements or the actual results or performance of the industries and markets in which we operate and intend to operate may be materially different from those anticipated in our forward-looking statements. Forward-looking statements involve significant uncertainties and risks, should not be read as guarantees of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in our forward-looking statements, including our ability to negotiate definitive documentation for the Memorandum, in the time contemplated or at all, that the conditions precedent for the execution of definitive documentation can be satisfied in the time contemplated, or at all, including completion of satisfactory due diligence and receipt of necessary board approvals for the Memorandum, market validation for our technology and investor interest, that working capital requirements may be greater than projected, that the King William facility meets all necessary local and state requirements to obtain necessary permits in the ordinary course, and such other matters described in our public filings available on SEDAR at www.sedar.com. Accordingly, readers should exercise caution in relying upon our forward-looking statements and we undertake no obligation to publicly revise such statements to reflect subsequent events or circumstances, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Source: Targeted Microwave Solutions Inc. (TSX Venture:TMS, OTCQX:TGTMF, FWB:A2ACNT)
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