GLENDALE, Ariz. — PowerVerde Inc. announced that it has entered into a binding letter of intent to acquire Cornerstone Conservation Group LLC (CCG). The acquisition is scheduled to close by Dec. 31, 2011, and the consideration to be provided to CCG’s owners and affiliates consists of 2,260,000 shares of PowerVerde common stock and warrants to purchase 300,000 shares at exercise prices ranging from $2 to $3 per share. PowerVerde said it plans to leverage the resources of CCG and its principals into additional vertical markets for waste heat recovery, as well as energy conservation technology.

“The CCG team has been instrumental in assisting our efforts to enhance PowerVerde’s waste heat recovery system, a renewable electric generating system called the Liberator. CCG brought specialized knowledge and human resources to the project and truly expedited the Liberator’s introduction into the alternative energy space, while substantially improving its overall performance and reliability. Their proprietary technology is very complementary to PowerVerde’s platform and our existing vertical markets — mainly converting thermal energy into electric power generation,” said PowerVerde CEO Rick Davis.

“However, with CCG, we believe we can address additional vertical markets and specifically a technology known as combined cooling, heating, and power (CCHP). CCHP will utilize waste heat from commercial and residential heating, ventilation, air conditioning, and refrigeration (HVACR) systems. The CCHP market potential is huge, as we believe that millions of existing or new buildings could benefit from an efficient CCHP energy conservation and electric generating system. In addition, CCG’s founding partners, Bryce Johnson and Paul Kelly, have well established industry relationships and distribution channels across North America. These relationships represent the very best organizations in the HVACR industry.”

Cornerstone Conservation Group’s President Bryce Johnson said, “In the short time we have been working with PowerVerde it has become clear that the combination of PowerVerde and CCG’s intellectual property and proprietary technology will continue to yield disruptive game-changing technology, much like the recently introduced Liberator waste heat recovery system. In short order, we have demonstrated these two companies work extremely well together. There is a lot of synergy, and we believe both organizations are well served in combining resources and generating additional revenue streams for PowerVerde and their shareholders.”

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Publication date: 12/12/2011