Viking Closes
Acquisition Re: Electric Transmission & Open Conductor
Detection Technologies
HOUSTON, TX – February 15, 2022 --
InvestorsHub NewsWire --Viking Energy Group, Inc. (OTCQB:VKIN) ("Viking" or the
"Company") is
pleased to announce it acquired on February 9, 2022 a 51% interest
in two entities that own the intellectual property rights to fully
developed, patent pending, ready-for-market proprietary Electric
Transmission and Distribution Open Conductor Detection
Systems. The purchase price for the
interests acquired by Viking is up to $21,000,000, with $5,000,000
payable in shares of Viking on closing (i.e. $250,000 in common
stock and $4,750,000 in preferred stock) and the balance payable
upon certain sales thresholds being achieved, as further outlined
below:
No.
|
Purchase
Price[1]
|
When
Due
|
No. of Pref.
Shares
|
Conversion
Price
|
No. of
Underlying Common Shares[2]
|
Estimated
Revenues if Sales Target Achieved[3]
|
1
|
$250,000
|
On closing
|
N/A
|
$0.60
|
416,667
|
N/A
|
2
|
$4,750,000
|
On closing
|
475
|
$0.60
|
7,916,667
|
N/A
|
3
|
$1,000,000
|
Upon the sale of 10k units
|
100
|
$0.75
|
1,333,333
|
$50,000,000
|
4
|
$2,000,000
|
Upon the sale of 20k units
|
200
|
$1.00
|
2,000,000
|
$100,000,000
|
5
|
$3,000,000
|
Upon the sale of 30k units
|
300
|
$1.25
|
2,400,000
|
$150,000,000
|
6
|
$4,000,000
|
Upon the sale of 50k units
|
400
|
$1.50
|
2,666,667
|
$250,000,000
|
7
|
$6,000,000
|
Upon the sale of 100k units
|
600
|
$2.00
|
3,000,000
|
$500,000,000
|
Total
|
$21,000,000
|
|
2,075
|
$0.94 (avg.)
|
19,733,334
|
$500,000,000
|
The systems are designed to detect a break in a transmission
line, distribution line, or coupling failure, and to immediately
terminate the power to the line before it reaches the
ground. The technology will
dramatically increase public safety and reduce the risk of causing
an incendiary event,
andevent and
is designed to be integral component within a much-needed,
worldwide grid hardening and stability initiative by electric
utilities to improve resiliency and reliability of existing
infrastructure.
James Doris, President and Chief Executive Officer of Viking,
commented, "This technology is
extremely important.
It truly is difficult to put a
monetary value on a solution that can sense a broken power line and
cut the electricity flowing through the line before the wire hits
the ground.
Arcing and sparking energized power
lines are hazardous, and difficult to detect using traditional
concepts. Unfortunately, people in places like
California, Western Canada, Australia and other parts of the world
are fully aware of what can happen when a downed, energized power
line makes contact with the ground. The damage caused by these
wildfires has been catastrophic. We
have already begun discussions with major utilities in California
and global equipment manufacturers for deployment. Our solution can
be quickly and cost-effectively deployed in high-risk areas first,
then utilized more broadly by all utility companies to help reach
their grid hardening goals.
This scalable advancement in grid protection technology is a
simple, sustainable alternative to trenching power lines
underground or an embarking on comprehensive forest management
planned approach. Viking's newly acquired products offer protective
solutions for two distinct utility applications: (i) Transmission
Lines; and (ii) Distribution Lines.
Viking's Transmission Line solution is a software-based
solution designed to be deployed within a utility's existing
protection relay infrastructure, allowing the utility to protect
their grid without the need for costly and time-consuming
installations.
Viking's Distribution Line solution, known as
"The Line
Sentinel", is fully engineered and will be introduced to
the market through an internationally-recognized manufacturer and
distributor of protective relay systems and other
products.
The technologies were developed by Robert Stuart and Ronald
Smith, respected professionals with decades of experience in the
power generation, transmission and distribution
sector. Messrs. Stuart and Smith
will be leveraging their industry relationships globally to assist
Viking with integration and sales efforts.
*****
Additional details regarding the
proposed transactions were included in, and the description above
is qualified in its entirety by reference to, Viking's Current
Reports on Form 8-K
filed with the Securities and Exchange Commission ("SEC") on
February 15, 2022, and are available under "investors" – "SEC
filings" at www.vikingenergygroup.com.
About
Viking:
Based in Houston, Texas, Viking Energy
Group, Inc. is a growth-oriented diversified energy company.
Through various majority-owned subsidiaries, Viking provides custom
energy & power solutions to commercial and industrial clients
in North America and owns interests in oil and natural gas assets
in the United States. The
company also holds an exclusive license in Canada to a patented
carbon-capture system, and owns a majority interest in an entity
with intellectual property
rights to a fully developed, patent pending, ready-for-market
proprietary Medical & Bio-Hazard Waste Treatment system using
Ozone Technology.
For more information, please visit the
company's website at www.vikingenergygroup.com.
Forward-Looking
Statements
This press release may contain forward-looking information
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, and Section 27A of the Securities Act of 1933, as
amended. Any statements that are not historical facts contained in
this press release are "forward-looking statements", which
statements may be identified by words such as "expects," "plans,"
"projects," "will," "may," "anticipates," "believes," "should,"
"intends," "estimates," and other words of similar meaning. Such
forward-looking statements are based on current expectations,
involve known and unknown risks, a reliance on third parties for
information, transactions that may be cancelled, and other factors
that may cause our actual results, performance or achievements, or
developments in our industry, to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Factors that could
cause actual results to differ materially from anticipated results
include risks and uncertainties related to the fluctuation of
global economic conditions or economic conditions with respect to
the oil and gas industry, the COVID-19 pandemic, the performance of
management, actions of government regulators, vendors, and
suppliers, our cash flows and ability to obtain financing,
competition, general economic conditions and other factors that are
detailed
in Viking's
filings with the Securities and Exchange Commission. We intend that
all forward-looking statements be subject to the safe-harbor
provisions.
Contact Information
Investors and Media:
Tel. 281.404.4387 (ext.3)