Canada-based HyPower Fuel has signed a memorandum of understanding to buy a controlling stake in a second Target Company (TC2).
The company said the TC2 received a preliminary business valuation from a chartered financial analyst of more than $100m, based on projected earnings for only the first product for TC2's technology.
HyPower CEO Douglas Bender said the company has negotiated the MoU at a significant discount to the current valuation.
"Steps are already being taken to align TC2 with major distributors in the industry and to present the initial product at a leading product exposition later this year. All indications are that the initial product will generate a large sales order immediately," added Bender.