Viper Networks Signs Agreement to Acquire 30% of Aequitas Energy
DETROIT, May 29, 2012 (GLOBE NEWSWIRE) -- Viper Networks, Inc. (Pink Sheets:VPER), is pleased to announce that the Company has finalized agreement terms with Aequitas Energy, Inc. by contractually committing to acquire thirty percent (30%) of the energy reseller company based in New Haven, Connecticut.
Agreement terms call for Viper Networks to invest one million U.S. dollars. Total monies due Aequitas may be in two increments throughout the remainder of 2012, but are expected to be in two main $500,000 tranches within two specific time frames.
The first $500k in cash funds is expected within the next twenty days with the second $500k amount by no later than October 31, 2012. The $1 million funding guarantees Viper Networks a 30% ownership position in Aequitas Energy, with a potentially higher ownership percentage in 2013 and beyond per additional investment opportunities that Viper Networks has first right of refusal.
Upon completing the full investment funding amount, Viper Networks will receive at least one seat on the board of directors with certain rights for additional seats that equate ownership percentage with comparable representation on the board. Additionally, the President of Viper Networks is expected to assume an active role in working closely with management at Aequitas Energy in several key areas, including aspects of IT (Information Technology) as it relates to the energy power reseller business as well as direct oversight on use of proceeds in the near future.
Although use of proceeds is designated for general operating purposes, interested parties should note that Aequitas Energy is specifically earmarking the funds to help cover all regulatory licensing requirements and testing of all new power connections prior to rolling out significantly expanded operations, which are expected to commence by December 2012.
Aequitas is uniquely positioned as an emerging energy reseller that is gearing up for rapid growth in the number of residential and commercial customers they expect to provide service for throughout Connecticut and Massachusetts. To date, much of the company's focus has come from well-established ties to the industrial sector and myriad commercial businesses throughout the northeast.
Essentially, Aequitas sources energy from other suppliers to customers at a lower rate than their current utility. For the customer, the transition is seemless as service remains uninterrupted and continues from their local utility company. The change of the customer's supplier will simply be listed in the supplier line featured on their regular utility bill. Government regulations require that the current utility must back up the energy supply of the customer's new provider.
Please note the Company is displaying a 'temporary' corporate site at www.vipernetworks.com.
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