INSEQ executes manufacturing agreement with Ovation products
Company secures first refusal manufacturing rights for Ovation's proprietary new Clean Water Appliance. GreenShift Corp. partial owner of both companies...
MOUNT ARLINGTON, NJ, Aug. 16, 2005 (PRNewswire-FirstCall) -- INSEQ Corp. today announced its execution of an agreement with Ovation Products Corp. pursuant to which INSEQ will manufacture Ovation's proprietary new Clean Water Appliance.
Ovation has invested over $9 million developing technology that offers dramatic price and performance advantages over competing clean water technologies. Ovation is finalizing the development of its initial product, the Clean Water Appliance -- a fire-hydrant sized appliance that can generate 25 gallons of pure water per hour from a variety of dirty water input sources at a cost of approximately $0.004 per gallon, or about 1.2% of the cost of traditional home distillation methods.
Ovation has shipped prototypes of the Clean Water Appliance to the United States Army and to its corporate partners and is in the process of finalizing its distiller design, and expects to be testing a commercially-viable unit in the fourth quarter of 2005 which will sell for a fraction of the price of commercial distillation systems. Ovation has been granted 11 patents for its technology and system, and has filed for an additional 5 patents to date.
Under the terms of INSEQ's agreement with Ovation, Ovation has granted INSEQ right of first refusal rights relating to the manufacture of the Clean Water Appliance and any other manufacturing needs relating to the Clean Water Appliance and the underlying technology.
INSEQ expects the Clean Water Appliance to be initially positioned to the industrial markets and the alternative technology sector of the residential septic market. INSEQ estimates that demand for the appliances in the alternative technology sector of the residential septic market alone numbers in the tens of thousands of units per year.
The Clean Water Appliances is currently selling at a price of $12,000, a price point which is expected to decline with increases in volume. INSEQ expects that it will have to meet production needs of in excess of 2,500 units per year within the next 18-24 months as Ovation and its various licensees continue to develop their markets for specific applications of Ovation's technology.
"We are very pleased to have the opportunity to work with Ovation on what we view to be a cutting edge technology and we look forward to getting to work," said Tony Warnecke, president of INSEQ's design and manufacturing subsidiary.
Kevin Kreisler, INSEQ's chairman and the chairman and chief executive officer of GreenShift, said that "The Clean Water Appliance is an exciting and important advance that easily and cost-effectively integrates into existing infrastructure."
"Chief among GreenShift's immediate term goals are its plans to help each of its portfolio companies increase their intrinsic value," continued Kreisler. "We can achieve this with acquisitions, investments, refinancing or technology development, but also by fostering profitable interaction between strategically compatible companies in our portfolio. INSEQ's manufacturing capabilities are more than sufficient to meet Ovation's needs and will gear up and support Ovation with anything they need done."
Ovation (www.ovationproducts.com) and INSEQ are respectively 9% and 70% owned by GreenShift Corp., a business development corporation whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.
INSEQ Corp. (www.inseq.com) is a publicly traded company whose mission is to directly facilitate the efficient utilization of primary and secondary commodities including metals, chemicals, fuels and plastics.
INSEQ is 70% owned by GreenShift Corp. (www.greenshift.com) , a business development corporation whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.