Energtek Signs Agreement for Acquisition of HOP Energy
Share:
HOP Energy Holdings to be acquired by Energtek subject to certain closing conditions
HOP services about 80,000 customers
Anticipated closing during the fourth quarter of 2016
As of the closing, the combined group will be renamed American Mobile Power Inc.
NEW YORK, Sept. 21, 2016 - Energtek Inc. (OTC: EGTK) ("Energtek"), a frontrunner in hi-tech natural gas solutions and Adsorbed Natural Gas (ANG) technology, announced today that it has entered into an agreement and plan of merger with HOP Energy Holdings, Inc. ("HOP") pursuant to which Energtek will acquire HOP for a cash purchase price of $65 million dollars. HOP is among the largest full service energy companies in the Northeast, serving about 80,000 commercial and residential customers, and presents an enviable platform from which Energtek plans to deploy its leading mobile natural gas technology in order to further its strategic goal of making natural gas available to previously unserved areas at affordable prices.
The merger, which is subject to customary closing conditions, is anticipated to be completed during the fourth quarter of 2016. As of the closing, the combined group will be renamed American Mobile Power, Inc.
Yoav Krill, Chief Executive Officer of Energtek commented, "We are acquiring a leading energy distributor on the East Coast, with thousands of clients, sizeable revenues, profits and an experienced management team. The execution of the merger agreement is the product of months of negotiations and hard work by all involved. I wish to thank the HOP owners and management for their leadership and cooperation."
Energtek's Executive Vice Chairman, Marshall Cogan, whose initiative was crucial in bringing about the deal, explained: "Our effort is directed toward revitalizing the company's strategy and turning Energtek into a substantial player in the market of mobile energy, supplying affordable energy to households and small to medium businesses. The synergies that we expect to achieve by this acquisition will enable us to play a significant role in product diversification to suppliers and consumers, with considerable improvements to the margins of this industry."
Michael Anton, President and Chief Executive Officer of HOP, added, "Joining forces with Energtek in a combined company will enable us to reaffirm our dedication to taking care our many customers, whether residential or commercial. We shall strive to increase our size and resources to meet their needs on a day-to-day basis as well as in emergency situations. We also look forward to expanding the range of our services, and to be able to add natural gas to the current mix of heating oil, liquid fuels and propane."
About Energtek
Energtek (EGTK) develops and applies innovative mobile energy transportation solutions for small, mid-size and large industrial, residential and agricultural consumers and fleets of small vehicles. Energtek offers cost-effective natural gas delivery solutions based on unique pipe-less technologies and products. Energtek's solutions allow consumers who are not connected to a pipeline to take advantage of natural gas: an inexpensive, environmentally-friendly and safe hydrocarbon energy source. Energtek's solutions enable monetization of natural gas resources where no infrastructure exists, enabling a one-stop-shop for mobile pipe-less natural gas supply: capturing, storage, transport and delivery of natural gas from the source to industrial, commercial, residential and NGV customers. To learn more about Energtek, view our website: www.energtek.com.
Contacts:
Investor Relations
+1-(212)9996202
IR@energtek.com
SOURCE Energtek Inc.
Web Site: http://www.energtek.com
