HOUSTON, TX / ACCESSWIRE / February 15, 2022 / Viking Energy Group, Inc. (OTCQB:VKIN) ("Viking" or the "Company") is pleased to announce it acquired on February 9, 2022 a 51% interest in two entities that own the intellectual property rights to fully developed, patent pending, ready-for-market proprietary Electric Transmission and Distribution Open Conductor Detection Systems. The purchase price for the interests acquired by Viking is up to $21,000,000, with $5,000,000 payable in shares of Viking on closing (i.e. $250,000 in common stock and $4,750,000 in preferred stock) and the balance payable upon certain sales thresholds being achieved, as further outlined below:
No. of Pref. Shares
No. of Underlying Common Shares2
Estimated Revenues if Sales Target Achieved3
Upon the sale of 10k units
Upon the sale of 20k units
Upon the sale of 30k units
Upon the sale of 50k units
Upon the sale of 100k units
The systems are designed to detect a break in a transmission line, distribution line, or coupling failure, and to immediately terminate the power to the line before it reaches the ground. The technology will dramatically increase public safety and reduce the risk of causing an incendiary event, and is designed to be integral component within a much-needed, worldwide grid hardening and stability initiative by electric utilities to improve resiliency and reliability of existing infrastructure.
James Doris, President and Chief Executive Officer of Viking, commented, "This technology is extremely important. It truly is difficult to put a monetary value on a solution that can sense a broken power line and cut the electricity flowing through the line before the wire hits the ground. Arcing and sparking energized power lines are hazardous, and difficult to detect using traditional concepts. Unfortunately, people in places like California, Western Canada, Australia and other parts of the world are fully aware of what can happen when a downed, energized power line makes contact with the ground. The damage caused by these wildfires has been catastrophic. We have already begun discussions with major utilities in California and global equipment manufacturers for deployment. Our solution can be quickly and cost-effectively deployed in high-risk areas first, then utilized more broadly by all utility companies to help reach their grid hardening goals.
This scalable advancement in grid protection technology is a simple, sustainable alternative to trenching power lines underground or an embarking on comprehensive forest management planned approach. Viking's newly acquired products offer protective solutions for two distinct utility applications: (i) Transmission Lines; and (ii) Distribution Lines.
Viking's Transmission Line solution is a software-based solution designed to be deployed within a utility's existing protection relay infrastructure, allowing the utility to protect their grid without the need for costly and time-consuming installations.
Viking's Distribution Line solution, known as "The Line Sentinel", is fully engineered and will be introduced to the market through an internationally-recognized manufacturer and distributor of protective relay systems and other products.
The technologies were developed by Robert Stuart and Ronald Smith, respected professionals with decades of experience in the power generation, transmission and distribution sector. Messrs. Stuart and Smith will be leveraging their industry relationships globally to assist Viking with integration and sales efforts.
Additional details regarding the proposed transactions were included in, and the description above is qualified in its entirety by reference to, Viking's Current Reports on Form 8-K filed with the Securities and Exchange Commission ("SEC") on February 15, 2022, and are available under "investors" - "SEC filings" at www.vikingenergygroup.com.
Based in Houston, Texas, Viking Energy Group, Inc. is a growth-oriented diversified energy company. Through various majority-owned subsidiaries, Viking provides custom energy & power solutions to commercial and industrial clients in North America and owns interests in oil and natural gas assets in the United States. The company also holds an exclusive license in Canada to a patented carbon-capture system, and owns a majority interest in an entity with intellectual property rights to a fully developed, patent pending, ready-for-market proprietary Medical & Bio-Hazard Waste Treatment system using Ozone Technology. For more information, please visit the company's website at www.vikingenergygroup.com.
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Any statements that are not historical facts contained in this press release are "forward-looking statements", which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions or economic conditions with respect to the oil and gas industry, the COVID-19 pandemic, the performance of management, actions of government regulators, vendors, and suppliers, our cash flows and ability to obtain financing, competition, general economic conditions and other factors that are detailed in Viking's filings with the Securities and Exchange Commission. We intend that all forward-looking statements be subject to the safe-harbor provisions.
Investors and Media:
Tel. 281.404.4387 (ext.3)
1 The $5 million due on closing is payable solely in stock of Viking. All other payments, if the subject sales targets are met, are payable in cash or in shares of convertible preferred stock of Viking, at the seller's option.
2 The shareholder shall not have the right to convert any preferred shares to the extent that after giving effect to the conversion the shareholder would beneficially own in excess of 4.99% of Viking's common stock.
3 These are estimates only. There is no guarantee any sales targets will be reached.
SOURCE: Viking Energy Group, Inc.
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