iGo, Inc. (Nasdaq: IGOI), a leading provider of eco-friendly power management solutions and mobile electronic device accessories, today announced the signing of an investment agreement with Pure Energy Visions Corporation and the expansion of its distribution and licensing agreements with PES Canada, Inc. and its parent company, Pure Energy Solutions, Inc., the Company’s partners in the rechargeable battery business. iGo’s investment will fund further developments in rechargeable alkaline battery technology and improve the economics of the product line.
In return for a total investment of $1.5 million Canadian dollars in Pure Energy Visions, iGo has received 2,142,858 shares of Pure Energy Visions common stock (which is traded on the TSX Venture Exchange under the ticker symbol PEV.V) at a price per share equal to $0.35, a $750,000 interest-free convertible secured debenture having a one-year repayment term that converts into an additional 2,142,858 shares of Pure Energy Visions common stock (also at a conversion price per share equal to $0.35) in lieu of repayment either upon the achievement of certain business goals or earlier at iGo’s discretion. The investment is subject to acceptance by the TSX Venture Exchange.
In addition, this investment in new technology and equipment will reduce iGo’s cost of sourcing its rechargeable alkaline batteries, which will position the Company to offer the batteries at a lower price to consumers. iGo also has certain exclusive rights in a new proprietary battery technology being developed by PureEnergy Solutions. iGo Green® rechargeable alkaline batteries are scheduled to be introduced in July 2011.
Michael D. Heil, President and Chief Executive Officer of iGo, Inc., commented, “Through this investment, we will be able to offer iGo Green® rechargeable alkaline batteries at a more attractive price point for consumers, further enhancing their appeal. With iGo Green, consumers can get a AA or AAA alkaline battery that can be recharged hundreds of times, saving them hundreds of dollars in the process and reducing the number of batteries that are tossed into landfills. We believe this will be a strong value proposition that will provide both a financial and an environmental incentive for consumers to make the switch from disposable batteries.”