mPhase Technologies Inc. entered a letter of intent to acquire Energy Innovative Products Inc. (EIP), a developer of proprietary technologies for reducing energy usage in refrigeration and cooling systems, as well as equipment utilizing AC induction in motors. EIP, based in Fairfield, N.J., uses patented and patent pending solutions to offer a series of products that control voltage and current used by compressor systems, including those in refrigeration decks, HVAC wall units, commercial refrigeration systems, and consumer equipment.
EIP, founded in 2008, believes its technology is uniquely positioned to capitalize on each of these opportunities by allowing legacy systems to achieve Energy Star status as well as compliance with emerging standards by the U.S. Department of Energy and other regulatory bodies.
In the U.S. alone, there are several million legacy vending machines used by major beverage companies. EIP’s solution is the only company certified for Energy Star status and able to deliver over 50 percent reduction in power consumption by machines such as the Dixie Narco 501 without reducing efficiency or cooling and without requiring a change-out in the unit’s refrigeration deck.
Government and power company rebates are available to support the purchase of EIP’s products in several states.
Scott Caputo, president of EIP, said in a prepared statement: “Corporate demand for energy saving solutions is increasing worldwide, driven by rising fuel costs, skyrocketing electricity costs, and growing concerns about greenhouse gases and their impact on the environment.”
The terms of the deal include the issuance of common shares and warrants for an 81 percent stake in EIP.
“We are extremely excited about the upside EIP offers to our organization over the coming years,” said Ron Durando, CEO of mPhase Technologies Inc. The transaction is expected to become definite in August 2011 and close by October 2011.