ENERDYNAMIC PROVIDES UPDATE ON PUERTO RICO – FIRST MAJOR HOUSING CONTRACT SIGNED
NIAGARA FALLS, ONTARIO / ACCESSWIRE / October 8, 2020 / EnerDynamic Hybrid Technologies Corp. (TSXV:EHT) (“EHT”) is pleased to provide an update on initiatives with its Puerto Rican JV partner, Brieke Family Assets Ltd (“BFA”), and their jointly-owned subsidiary, Cat5 Solar and Microgrids LLC (the “JV”).
Yesterday the JV signed a definitive agreement with WG Pitts Caribbean LLC (“Pitts”) for the supply of the JV’s building products initially for 100 homes. Pitts is an authorized government contractor in Puerto Rico for the Government of Puerto Rico and the United States Government and is currently working on projects that fall under the CDBG-DR-PR R3 program (“R3 Program”) where payment is made by a US Government body to the Government of Puerto Rico. Pitts will work with the JV to build a greater volume of homes than it is currently is able to build by utilizing the JV’s innovative and unique building systems and part of the $100m line of credit that the JV has with Brevet Capital.
The JV’s building systems will enable Pitts to build a safe, sustainable and resilient R3 Program home in less than 60 days effectively halving the time typically taken by contractors using normal construction methods and therefore putting people back into their homes at twice the normal speed of rehousing the families.
Pitts has agreed to utilize the JV’s operating line provided by Brevet Capital as necessary to provide sufficient cash flow to initially build the first 100 R3 Program homes (units) utilizing the JV’s products and recommended construction methods. The estimated average building order cost for a new home, ground up, construction is $150,000 (based on estimates performed by Pitts), inclusive of all materials, soft costs, permits, insurance, labor etc.; approximately $85,000 of cost per unit is for materials, of which $50,000 per unit is estimated for the JV’s products.
The R3 Program is for residential units in Puerto Rico’s 78 municipalities that had damage caused by hurricanes Irma and/or Maria. Priorities during the first 90 days of the R3 Program include:
Applicants with significant property damage (including blue roof)
Elderly applicants (65 years or older)
Low-to moderate-income eligible housing
Single-family housing units occupied by owners that were affected by hurricanes Irma and/or Maria.
Malcolm Wright, Director of Brieke,stated, “The R3 Program is the first major effort by the U.S. territory of Puerto Rico to carry out major repairs and rebuilding of damaged and destroyed housing. Nearly 27,000 homeowners applied under this program after its start date with an estimated new construction costof $150,000 per home, equating to $4bnof new constructionor a potential of $1.35bn for our JV Cat5 product lines. That is a huge potential target for our JV to obtain a very substantial share of the Puerto Rican market”.
John Gamble, CEO of EHT, commented, “With our new arrangements with Pitts we can now open manufacturing plants in Puerto Rico for the JV’s product lines. We intend to work hand in hand with both Pitts and other contractors and help the government housing department to accelerate its rebuilding program to re-house displaced families as quickly as possible and to employ local labor in our manufacturing facilities”.
About CAT5 Solar and MicroGrids (“Cat5”)
Cat5 provide the following products to contractors in Puerto Rico:
Cat5 Blocks, a patented block design, will be produced by Rosa Block in Rio Grande, Puerto Rico. The system can be engineered to withstand in excess of 200 mph winds and seismic activity. It can be constructed in half the time of a normal concrete masonry unit (CMU) requiring only 10% skilled labor, which is scarce in Puerto Rico, meaning 90% unskilled labor can be pooled and utilized from the local community. The system provides insulation of R30+, making it very desirable for the local climate. The electrical and plumbing is pulled through the courses of the block as it is laid during construction reducing time for the skilled trades.
Cat5 Structural Insulated Panels (SIPs) to be used as internal walls consisting of an insulating foam core placed between two structural facings; typically, oriented strand board (OSB) is used except the Cat5 SIP uses Enertec skin and/or Enertec skin and cement board. The panels will be manufactured in Villalba, Puerto Rico under factory-controlled conditions and can be fabricated to fit most building designs. Manufactured and finished in the factory, the conduit for electrical and plumbing are completed rapidly. Cat5 roof SIPS are designed to lay over galvanized steel trusses which are attached to the top two courses of the Cat5 walls. The galvanized trusses have a built in pitch via the positioning of the top chords so water will easily run off the roof.
Cat5 Solar panels are designed to withstand sustained wind speeds up to 250 mph. The panels also will be manufactured in Villalba in the same facility as the SIPs. Using N cell technology, they produce up to 400 watts of power; should a projectile damage a specific part of the panel, it will only render that small section of the cell it hits useless, opposed to traditional panels that would no longer work in their entirety. Mounted on the EPS foam and Enertec skin provides additional insulation and weighs significantly less than traditional glass panels. Each panel can be laid flat on the roof. Cat5 products are ideal for any buildings up to 8 stories, especially in at risk high wind and seismic areas of the world.
Cat5 offers Island contractors 90 days interest free credit subject to the use of Cat5 products and an assignment of the relevant portion of the government debt owed on the completion of the project. The use of Cat5 products will provide the contractor with higher profit margin, faster build time, labor cost savings, built to CAT5 specifications, resulting in more resilient and sustainable homes.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The statements herein that are not historical facts are forward‐looking statements. Forward-looking information relating to sales of the products (the “Opportunities”) involves risk, uncertainties and other factors that could cause actual events, results, performance, prospects, for the Opportunities to differ materially from those expressed or implied by such forward-looking information. Although EHT believes that the assumptions used in preparing the forward-looking information on the Opportunities outlined in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. EHT disclaims any intention or obligation to update or revise any forward-looking information, whether a result of new information, future events or otherwise, other than as required by applicable securities laws.
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SOURCE: EnerDynamic Hybrid Technologies Corp