Toronto, Ontario–(Newsfile Corp. – March 24, 2022) – SPARQ Corp. (TSXV: SPRQ) (formerly MJ Innovation Capital Corp.) (the “Company“) is pleased to announce that its wholly owned subsidiary, SPARQ Systems Inc. (“SPARQ“), entered into a memorandum of understanding dated March 23, 2022 (the “PE“), with Ti-Lane Precision Electronic Company Limited (“Ti Lane“) for high-volume manufacturing of power inverters. Ti-Lane is a global leader in providing connector and cable assembly products for communications, computing, medical, automotive and clean energy applications.
The terms of the memorandum of understanding provide that Ti-Lane will, at its own expense, build a manufacturing facility in GuangDong Province, China. The facility is expected to be completed by July 2022 and produce for the Company 5,000 to 10,000 units per month profitably by the fourth quarter of 2022. The initial capacity of the facility is expected to be 200 MW per year with potential to expand to 1 GW as demand increases.
The additional capacity to be provided by Ti-Lane is expected to be a critical complement to the company’s existing manufacturing capacity in Canada, which has been hit by a severe chip shortage. Given that the Company’s current manufacturing partner in Canada will not be able to produce inverters for the Company in sufficient quantities for this fiscal year, the Company does not expect to generate significant revenues before 2023.
Praveen Jain, President and CEO of the company, said, “Partnering with Ti-Lane is key to significantly expanding our manufacturing capacity and we look forward to enjoying a long-lasting relationship together. As a major supplier of photovoltaic solutions for system balance (“PV”) components and strong supply chain management, Ti-Lane will manage the entire supply chain of manufactured products for us, which will help us overcome the current challenges of semiconductor chip shortage . »
Robbie Luo, President of Ti-Lane and Director of the company, said, “We are delighted to strengthen our alliance with the SPARQ team and grow our collective business. We strongly believe in SPARQ’s technology and its ability to become a major player in the renewable solar PV market.”
The MOU provides that the parties must negotiate a formal binding manufacturing agreement within 90 days of the MOU. The Memorandum of Understanding constitutes a “related party transaction”, as that term is defined in Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101“) since Robbie Luo is an officer and shareholder of Ti-Lane and a director of the Company. The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements under NI 61-101.
SPARQ’s head office is located at 945 Princess Street, Kingston, Ontario, K7L 0E9. SPARQ grew out of advanced research conducted at ePOWER, the Center for Energy and Power Electronics Research at Queen’s University in Kingston, Ontario, Canada. SPARQ was founded at Queen’s University in 2009 by Canada Research Chair in Power Electronics, Dr. Praveen Jain, Fellow of the Institute of Electrical and Electronics Engineers and Royal Society of Canada.
SPARQ designs and manufactures next-generation single-phase microinverters for residential and commercial solar electric applications. SPARQ has developed a proprietary PV solution called the Quad; the Quad Inverter optimizes four PV modules with a single microinverter, simplifying design and installation and reducing the cost of solar power installations compared to existing offerings on the market.
Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical facts contained in this press release, including, without limitation, those regarding the expected completion of the Ti-Lane manufacturing facility, the quantity of units to be manufactured for SPARQ on a monthly basis, and the Company’s technical, financial and business outlook information, financial condition and future results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statement preceded, followed by, or containing the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will fly”, “may “, “would”, “anticipate”, “estimate”, “expect”, “predict”, “project”, “seek”, “should” or similar expressions or their negative form, are forward-looking statements. These statements do not are not historical facts but rather represent only the expectations, estimates and the Company’s projections of future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or anticipated in such forward-looking statements.
Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to, the risk factors discussed in the Company’s filing statement dated December 23, 2021. Management provides statements forward-looking information because it believes it provides useful information for investors in considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Accordingly, any forward-looking statements made in this press release are qualified by such cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that actual results or developments will be achieved or, even they are substantially achieved, that they will have the expected consequences or effects on the Company. These forward-looking statements are made as of the date of this press release, and the Company undertakes no obligation to update or revise them to reflect subsequent or other information, events or circumstances, except as required by law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
For more information please contact:
Dr Praveen Jain
Chief Executive Officer
Email: [email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/118060