DETROIT--(BUSINESS WIRE)--Cirque Energy, Inc. (OTC:EWRL), at times referred to herein as Cirque, a global leader in the development of sustainable energy solutions focused on distributed generation projects and waste stream optimization, today announced that it has entered into a $5 million common stock purchase agreement with Kodiak Capital Group, LLC, a Newport Beach, California-based institutional investor.
Cirque has agreed to file a registration statement with the U.S. Securities and Exchange Commission covering the shares that may be issued to Kodiak under the terms of the common stock purchase agreement. After the SEC has declared the registration statement related to the transaction effective, Cirque will have the right at its sole discretion over a period of one year to sell up to $5 million of common stock under the terms set forth in the agreement.
Proceeds from this transaction, if any, will be used to further develop and commercialize projects using Cirque’s proprietary deployable gasification unit (DGU) technology, including the construction and installation of the previously-announced Midland Biomass Power Station, LLC in Midland, Texas in addition to executing upon our joint development agreement with Northrop Grumman for DGU fabrication and deployment, both of which Cirque expects to begin generating revenue in early 2015. Cirque will also use some of the proceeds, if any, to retire more expensive, short-term debt obligations and to explore complementary, accretive, and revenue-generating strategic acquisitions.
“We are very excited about the opportunity to receive this capital infusion and the vote of confidence in our technology and business model by an investment group as renowned and successful in the alternative energy space as Kodiak,” commented Joseph L. DuRant, Cirque’s President, Chairman, and Chief Executive Officer. Ryan Hodson, Managing Director of Kodiak, said “We are equally pleased to be able to assist an industry-leading company such as Cirque as it moves forward with the commercialization of its revolutionary waste-to-energy technology and products.”
Additional details regarding the financing agreement are included in a current report on Form 8-K filed by Cirque with the SEC Friday, October 24, 2014.
About Cirque Energy, Inc.
Cirque Energy, Inc. is a sustainable energy development company focused on distributed generation projects and waste stream optimization. Its projects serve utilities, manufacturing, and institutional clients. The company primarily utilizes an Energy Service Company (ESCO) co-development business model to collaborate with clients to develop solutions for their long-term energy needs, using appropriate technologies to optimize energy cost savings.
Cirque is working in partnership with Northrop Grumman Corporation to bring to market a Deployable Gasification Unit (DGU) that can use solid waste to supplement traditional fuels used to generate combined heat and power (CHP). The company has proprietary gasification technology designed for CHP applications that can use waste fuels to produce low cost, renewable energy in the 200-2,500 kW market. For more information about Cirque Energy please visit www.cirque-energy.com.
About Kodiak Capital Group, LLC
Kodiak is an institutional investor headquartered in Newport Beach, California. Kodiak makes private investments in public and private entities utilizing proprietary equity and debt instruments. These investments provide long-term strategic capital offering companies certainty, flexibility and consistency. Kodiak's investments are in a wide range of industries emphasizing alternative energy, consumer products, life sciences, natural resources, and social media technology. For more information, visit www.kodiakfunds.com.
This release may contain forward-looking statements relating to the business of Cirque. All statements other than historical facts are forward-looking statements, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements involve risks and uncertainties that may cause actual results to differ materially from those anticipated, believed, estimated or expected. These risks and uncertainties are described in detail in our filings with the Securities and Exchange Commission. Forward-looking statements are based on Cirque's current expectations and beliefs concerning future developments and their potential effects on Cirque. There is no assurance that future developments affecting Cirque will be those anticipated by Cirque. Cirque undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
Not a Broker/Dealer or Financial Advisor
Cirque is not a Registered Broker/Dealer or a Financial Advisor, nor does it hold itself out to be a Registered Broker/Dealer or Financial Advisor. All material presented in this press release, on the Company's website or other media is not to be regarded as investment advice and is only for informative purposes. Readers should verify all claims and conduct their own due diligence before considering an investment in Cirque.
No Offer of Securities
None of the information featured in this press release constitutes an offer or solicitation to purchase or to sell any securities of Cirque.