Dec 26 2012
Clean Coal Technologies, Inc. (the “Company”), an emerging cleaner-energy company utilizing patented technology to convert raw coal into a cleaner burning and more efficient fuel, today announced it has sent a notice of default and termination to AGPL Investments Pte. Ltd. (“AGPL”) pursuant to the default and termination provisions of the September 21, 2012 EPC Payment Agreement, the Heads of Terms Agreement dated effective March 13, 2012 and the Joint Venture Agreement in Respect of Good Coal, Pte. Ltd (“JV”) effective June 5, 2012, including the Exclusive Technology License Agreement incorporated therein. Under the default terms of the above, the Company is also seeking the immediate dissolution of the Good Coal joint venture.
At this time, the Company is working to ensure that there is no disruption in the Oklahoma pilot plant construction schedule. The Company intends to assume the obligations for the project under a new construction contract and expects to own the completed pilot plant outright. The Company will use the funds already received from Ventrillion Management Company Ltd to ensure timely completion of the project.
As a result of the termination of the AGPL agreements, the Company will directly receive 100% of any and all anticipated revenues that may be generated in the ASEAN region (including Indonesia, the Philippines, Cambodia, Vietnam, Malaysia, Brunei, Thailand, Laos and Myanmar) following the successful completion of the pilot plant and full commercial implementation of the Company’s technology. Attempts by the Company to help AGPL resolve the material breaches and continuing payment defaults under the above agreements have been unsuccessful.
“AGPL’s inability and failure to meet its contractual funding obligations was unanticipated. However, the Ventrillion transaction is allowing CCTI to move forward from a position of strength,” said Robin Eves, Director, President and CEO of Clean Coal Technologies. “Furthermore, the equity capital already received and anticipated under the Stock Purchase Agreement is expected to cover the cost of the pilot plant as well as the Company’s working capital needs through the end of 2014.”