DALLAS, TX - January 4, 2018 - Alternet Systems, Inc. (USOTC: ALYI) today announced a spinoff and dividend strategy to unlock shareholder value. The company is applying its portfolio of patented lithium battery technologies to enhance the value of electric powered products to include electric vehicles and military support systems. Management plans to unlock shareholder value by spinning off technology applications to delineate between the asset value of the technology itself and the asset value created from the application of the technology. The company’s plan is to take advantage of the new Regulation Crowdfunding adopted by the SEC to capitalize independently listed spinoffs where shares of the spinoff are issued to shareholders of Alternet Systems in a dividend distribution. The Company has published an online presentation with more details on its plan to spinoff two subsidiary operations in 2018 and issue shares in both spinoffs in dividend distributions to shareholders. The presentation can be found on the company’s website with the narrative from the presentation available in its entirety below:
Unlocking Shareholder Value By Delineating Between Discrete Assets
Electric Vehicle Spinoff - On July 21, 2017, Alternet Systems acquired Lithium IP Holdings. Lithium IP Holdings has an exclusive license agreement with Air Products and Chemicals, Inc. (NYSE:APD) for ten U.S. Patented lithium battery technologies with an option to acquire the ten U.S. Patents. Alternet is currently engaged in the development of partnerships with prominent third parties producing products and services that require stable, safe, long duration power in high impact operating systems. Alternet, together with each partner will develop an integrated solution that includes a power component based on Alternet’s lithium technology. Alternet is currently developing partnership opportunities to apply its exclusive lithium technology in military solutions and Electric Vehicle (EV) applications. The ongoing EV partnership negotiations include a plan to build the partnership with in a subsidiary established by Alternet and subsequently spun off from Alternet in conjunction with a Regulation Crowdfunding transaction to capitalize the new independently listed company. The spinoff plan includes a dividend distribution of stock in the new independently listed company to shareholders of Alternet. Management believes the spinoff and dividend strategy is good for both optimally capitalizing the spinoff operation and giving shareholders the best return on investment opportunity possible. Management expects the combination of two stocks, one representing the value of the lithium battery technology asset that remains in the parent company, and the other representing the value of the application of the technology, will together yield a greater return for shareholders than a single stock representing the integrated value of the two.
Separate Technology Spinoff – In addition to the patented portfolio of lithium battery technologies, Alternet is working to acquire additional lithium battery related technologies. Alternet is currently in negotiations to acquire a specific lithium battery related technology that is complimentary to the current portfolio of patented lithium battery technologies, but at the same time in a completely different category. The negotiations include the complimentary technology being acquired into a newly formed subsidiary of Alternet, and that new subsidiary subsequently being spun off in conjunction with a Regulation Crowdfunding transaction to capitalize the new independently listed company. The spinoff plan includes a dividend distribution of stock in the new independently listed company to shareholders of Alternet. Again, management believes the spinoff and dividend strategy is good for both optimally capitalizing the spinoff operation and giving shareholders the best return on investment opportunity possible.
To learn more about the specific spinoff opportunities, management recommends reviewing the following previous announcements in addition to checking back frequently on additional updates the company anticipates soon announcing:
Disclaimer/Safe Harbor: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies' contracts, the companies' liquidity position, the companies' ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur.
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