Ravenscraig Properties Announces Termination of Pulse Combustion License to Clean Energy Combustion Systems, Inc.
July 19 2005 - 4:47PM
PR Newswire (US)
Ravenscraig Properties Announces Termination of Pulse Combustion
License to Clean Energy Combustion Systems, Inc. VANCOUVER, British
Columbia, July 19 /PRNewswire/ -- R. Dirk Stinson, on behalf of
Ravenscraig Properties, Ltd., the licensor to Clean Energy
Combustion Systems, Inc. (OTC:CECU) (BULLETIN BOARD: CECU) of its
"pulse combustion technology," advises that the license granted to
Clean Energy to use the pulse combustion technology was terminated
pursuant to the terms of the license effective as of March 23,
2005, based upon the continued insolvency of the company. Mr.
Stinson also confirms that he has resigned as President of Clean
Energy and as a member of its board of directors as of July 7,
2005. As a consequence of the termination and pursuant to the terms
of the underlying license agreement, Clean Energy shall no longer
be entitled to market products using the pulse combustion
technology, and all rights to the technology and all improvements
shall revert to Ravenscraig Properties. Mr. Stinson stated:
"Ravenscraig has made the decision to terminate the license both on
the basis of Clean Energy's continuing insolvency and inability to
raise funds to develop a production model, as well as various
management disagreements that the board of directors has refused to
date to address. Because of Clean Energy financial inability to
develop a production model, including its inability to find a
commercial user to fund a production model for the company, Clean
Energy has not been able to enter into any commercial contracts to
date. Over my period of involvement with the Clean Energy, first
solely as an investor and then as an officer and director, I have
been forced to devote my time and personal funds to keep the
company in business notwithstanding that this was never
contemplated when I was first approached with this business
opportunity. This situation has continued for many years, and I
have continued to provide funding and forbearance notwithstanding
that Ravenscraig could have terminated the license for insolvency
at any time. However, more recently, and in view of my more limited
resources and the noted management issues, I have decided that it
makes no sense and is not in my best interests to continue to
personally work with and to fund the company or for Ravenscraig to
continue the pulse combustion license, particularly since as a
practical matter I bear all of the risks and little of the rewards
in doing so and the board is unable or unwilling to address the
management issues." "In an effort to be fair, I have extended to
Clean Energy the opportunity to obtain a fully paid pulse
combustion license for the core areas which it has been working on
for a number of years, such as its ecoTech gasifier and greenhouse
burner projects. In the meantime, I would personally pursue and
finance the substantial cost necessary to develop a production
model of the burner for oil & gas applications, which I would
reserve for myself given the costs and risks I would solely bear,
although I would also pay Clean Energy a royalty. Clean Energy
could then use this fully-developed production model to prove the
viability of the technology to purchasers for its core
applications, thereby allowing it to finally move forward. This
license would also require Clean Energy to address the management
issues." "Unfortunately, despite continuous promises from
continuing management over the past four months that they would
address the issues, including the terms of a new license, nothing
has happened. I delivered my most recent proposal to management
almost one month ago, and have heard virtually nothing
constructive. The principal objection appears to be that management
considers it my obligation to pay all the costs and to bear all the
risks of developing the oil and gas production model, while
affording Clean Energy the bulk of the benefits. This proposal,
reflecting the status quo from prior years, is now unacceptable.
Since it appears that management is unable or unwilling to respond
to this issue and is merely 'buying time,' I have now formally
terminated all negotiations with Clean Energy for any type of
license while I will proceed with my other endeavors." DATASOURCE:
Ravenscraig Properties, Ltd. CONTACT: R. Dirk Stinson,
+1-604-340-4458, or , for Ravenscraig Properties, Ltd.
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