TurboGen Ltd. (NASDAQ:TRBG) shares plunged in price Wednesday. The Israel-based company, a developer of combined heat and power systems based on multifuel microturbines, today announced the signing of a non-binding memorandum of understanding (“MOU”) with a U.S. entity that owns and operates residential care and rehabilitation centers in the United States to purchase approximately 40 units of the Company’s 80Kw combined heat and power systems to be placed in their facilities, based on the Company's estimate of the energy demand in those facilities. The MOU contemplates an initial purchase of 40 units, subject to entry into a definitive agreement setting forth the terms of the purchase.
“Our microturbine-based CHP systems provide versatile and efficient power and heat, with our 80Kw systems being specifically designed for larger residential and commercial operations,” stated CEO Yaron Gilboa.
“This MOU represents recognition within a substantial U.S.-based operation for the specific benefits of our technology, and we look forward to continuing the negotiation process and acquiring this customer.
“We further believe this MOU may lead to several potential contracts that represent both the attraction of our uniquely designed technology, and demonstration of shareholder value even in the early days of our NASDAQ listing.”
The Company anticipates providing further updates related to the MOU as they develop, as well as other ongoing business developments.
TBRG shares lost 31 cents, or 7.3%, to begin Wednesday trading at $3.94.
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