Cyclone will assume Advent’s position as prime contractor with the US Army Tank Command, in a project that will see Cyclone’s auxiliary power technology deployed in multiple lines of combat vehicles. The value of the military contract being transferred is $1.4m.
Christopher Nelson, president of Cyclone, said, ‘The closing of the Advent acquisition marks an important milestone for our company and shareholders. With the TACOM contract, we expect to achieve solid revenue over the next year and, hopefully, gain a long-term customer.
‘We believe that while military budgets are being trimmed, eco-friendly technologies that make our military forces more efficient and save the government money — like the Cyclone engine — will continue to receive funding and support. Cyclone will aggressively pursue these rewarding opportunities.’
Phil Myers, CEO of Advent, added, ‘We are pleased to have this acquisition closed. Advent’s existing government relationships coupled with Cyclone’s engine technology provides us many advantages now and going forward. This is an exciting time for both companies. I have great faith in Cyclone’s ability to complete the US Army contract, and ultimately, to commercialise its engine technology for both military and civilian customers.’
The purchase price for the deal, originally announced at the end of last year, was 1.5 million shares of Cyclone common stock.
Earlier this month, Cyclone CEO Christopher Nelson spoke to NewNet to explain the company’s strategy.
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