Arrowhead Gold Corp. (CSE:AWH) is pleased to announce that it has signed a Letter of Intent to acquire 100% of the outstanding shares of Nuvo Energy Grid Inc. a private company, with its headquarters in Toronto, Ontario.
Pursuant to the LOI, Arrowhead will acquire all shares of Nuvo from the Nuvo shareholders in exchange for 13.25 million post consolidated common shares of Arrowhead. Nuvo has sufficient working capital to develop its business plan.
AWH proposes to reduce the number of Common Shares of the Company, as management believes it is in the Company’s best interest to consolidate the shares to increase the Company’s share price and conceivably improve trading liquidity. Many brokerage houses and institutional investors have policies which either, incline to exclude individual brokers from recommending low-priced shares to their customers, or prohibit them from investing in low-priced shares. Upon completion of a proposed 1:6 consolidation, AWH’s current issued capital of 20,940,494 common shares would become 3,490,080 common shares. The proposed consolidation is subject to Shareholder and Regulatory approval.
Management of AWH are required to enter into a voting support agreement pursuant to which they will vote their shares of AWH in support of the transactions set out in the LOI.
Nuvo will nominate candidates for election to AWH’s Board of Directors.
AWH will obtain all applicable regulatory and shareholder approvals. All steps necessary will be taken to change the name of Arrowhead Gold Corp. to Nuvo Energy Grid Inc.
Nuvo Energy Grid Inc.
Nuvo is a Private Canadian Company based out of Toronto, Ontario. The company is focused on acquiring companies in the Energy Efficiency and Technology sectors. Driven by the rising cost of electricity across North America the energy efficiency market is enjoying double digit annual growth rates and according to Pike Research, the “Global Energy Efficiency” market is valued at $300 Billion as an annual industry.
Much in the same way that smartphones have come to enhance the way we communicate, the world of connected energy technology is all about enhancing the way your living and work space communicates. One of the best examples right now is the Nest Thermostat. Nest Labs was created to build products that change how we use regular energy technology, with an immediate focus on efficiency, safety, and ease of use. In January 2014, Google Inc. entered into an agreement to acquire 100% of Nest Labs for a total purchase price of $3.2 billion.
Paul Ghezzi, CEO of Nuvo says, “We are entering a period of convergence between energy and the ‘Internet of Things’. Nuvo is positioned to take advantage of this rapidly growing market sector through the acquisition and/or development of intelligent energy technology, data mining, energy demand, integration and energy services management. Additional technology targets include smart plugs, smart controls and smart battery storage.”
Nuvo has targeted a number of private companies in the smart and” internet of things” sector and energy service companies with positive EBITDA, that are potential accretive acquisitions in the first half of 2016.
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