Aura Systems, Inc. announced that it entered into an exclusive commercial and industrial distribution agreement for its AuraGen products in the Republic of Korea. According to the terms of the 5-year agreement, Genergy Inc. (the distributor) will purchase a minimum of $9.5 million of AuraGen products over the contract life. Genergy Inc. has also agreed to prepay the first $500,000 of orders. Furthermore, Genergy has subscribed to $1,000,000 in a private placement for Auraâ€™s common stock.
Mr. Bryan Lee, Genergyâ€™s CEO, stated, â€œWe are very pleased to represent Auraâ€™s revolutionary mobile power solution (AuraGen) in Korea. In recent years there has been a global awareness of the need to safeguard our environment and to provide ‘green solutions’ whenever possible. There are many applications of the AuraGen technology that when implemented, will result in reduction of the usage of fossil fuels. This of course will result not only in cost savings but also in significant reduction of harmful emissions.â€
Melvin Gagerman, Auraâ€™s CEO, commented, â€œAura is pleased to introduce Genergy Inc. as our exclusive distributor for commercial and industrial applications in Korea. The technical advantages as well as the economic and environmental advantages of the AuraGen in many different applications will provide Genergy with a competitive advantage, and help make the AuraGen solution the solution of choice in Korea. We are currently negotiating additional business relationships in other parts of the world and expect to conclude some of them in the coming months. We welcome Genergy to the Aura family.â€