
ADCapital Industries, Inc.
Company Report
8/15/2005
ADCapital Industries, Inc.
(Pink Sheets: ADCS / Last trade: $2.00)
WHY YOU SHOULD CONSIDER ADCS:
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The proprietary and patent pending Auto Emissions Post Regulator (AEPR™) will benefit the environment by reducing pollution and ozone destroying emissions from automobiles.
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The timing is right --environmental concerns around the globe led to the signing in 1997 of the Kyoto Protocol that calls for 38 industrialized countries to reduce its greenhouse gas emissions by 5.2% from 1990 levels.
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The product retrofit is inexpensive ($130 CA/$105 US) and uses recyclable replacement cartridges to provide an inexpensive alternative to maintaining effectiveness while providing a source for recurring revenues .
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ADCapital and its products have a high potential for acquisition, licensing, or government mandate.
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The product is constructed to be able to be used on any vehicle and provide a standardized platform that will allow future technologies, whether developed by ADCS or other companies, to be introduced to vehicles equipped with the AEPR™ device.
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Initial tests from a certified emissions measuring facility reveal the ability to reduce nitrous oxide (NOx) emissions by up to 90% . It is NOx that results in the smog that you see in and around cities and contributes to acid rain.
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The product has demonstrated the ability to reduce other gases that adversely affect the environment such as carbon monoxide (CO), and hydrocarbon (HC), while increasing the release of oxygen (O2).
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The processes may be able to transcend the automobile industry to be used in large industrial factories that release toxic substances into the air from burning of fossil fuels.
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The company has spent over $500,000 CA to date developing the technology. The company has patents pending in the United States, Canada, and has filed the proper PCT application for protection in participating countries.
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The company has a low number of shares outstanding (approximately 8.3 million shares) with only 3 million in the float.
ADCapital Industries, Inc. (Pink Sheets: ADCS)
52 Week Range: |
$0.27 - $6.42 |
Fiscal Year End: |
Dec 31 |
Shares Outstanding: |
8,320,000 |
Approximate Float: |
3,000,000 |
Market Cap: |
$16,640,000 |
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AD Capital U.S. Overview http://www.adcapitalindustries.com/
The company has developed a patent pending technology called the Auto Emissions Post Regulator (AEPR™). The device replaces mufflers on gasoline-operated motor vehicles and uses a removable cartridge to house its technology, dramatically reduce emissions safely and inexpensively.
Vehicle emission standards have been raised in response to international government intention to reduce toxic levels of pollution-causing emissions, particularly in larger cities. While it is important to note that governments are creating new standards to reduce greenhouse gases, one must recognize that these standards only apply to newer vehicles that have been or will be built in accord with the regulations.
Other than the AEPR™ , older cars cannot efficiently improve upon the original standard to which they were built on a cost effective basis. No other technologies - including fuel cells - will assist here.
Currently the timing for air quality improvements relies on the replacement of the older models with the much cleaner new models, to which the newer, higher standards are directed. The AEPR™ creates the real potential to shorten the time line to cleaner air levels. Since older cars constitute a considerable portion of the vehicles on the road today, the AEPR™ would allow government authorities the present ability to implement practical emissions reduction in older cars as part of their clean air strategy.
It is clear that the reduction of emissions requires a global effort. In 1997, 180 countries signed and ratified the Kyoto Protocol to provide economic incentives and penalties for countries which achieve or fall short of designated targets for the reduction of greenhouse gases (GHG) produced in relation to 1990 levels. While each country's target may vary, overall the protocol calls for a reduction of greenhouse gases between 2008 and 2012 to levels that are 5.2% below 1990 levels. Below is an example:
Country Kyoto Protocol Reduction %
Europeon Union, Bulgaria, Czech Republic,
Estonia, Latvia, Liechtenstein, Lithuania, Monaco,
Romania, Slovakia, Slovenia, Switzerland -8%
United States (not ratified) -7%
Canada, Hungary, Japan, Poland -6%
The targets cover emissions of the six main greenhouse gases, namely:
| Carbon dioxide (CO2) |
Methane (CH4) |
Nitrous oxide (NOx) |
| Hydrofluorocarbons (HFCs) |
Perfluorocarbons (PFCs) |
Sulphur hexafluoride (SF6) |
Of these gases, ADCapital has chosen to focus on the reduction of Nitrous Oxide (NOx) due to its contributions to smog, acid rain, haze, and ultimately oxygen depletion. In fact, while all other major air pollutants have decreased since the Clean Air Act of 1970, NOx emissions have increased by nearly 19% (4 million tons each year) and vehicles contribute almost 35% of NOx emissions. NOx costs society billions of dollars from illness and death as a result the formation of harmful particulate matter and ozone smog. NOx is such a problem that the European Commission is considering creating standards that will call for the reduction of NOx emissions and hydrocarbons by 25% for gasoline-powered cars. The AEPR™ has shown the ability to reduce NOx emissions by up to 90%. For more information regarding NOx, please click on the Environmental Defense link below:
http://www.environmentaldefense.org/documents/2551_FactSheet_NOx.pdf
Technology:
The Auto Emission Post Regulator or AEPR™ is a modular and replaceable filter cartridge system intended for any gasoline motor vehicle muffler. The AEPR™ is the next logical step in emission reduction technology. With cleaner fuels and catalytic converters, along with the associated hardware, approaching their theoretical limits, the AEPR™ is the supplementary means required to reduce the vehicle emissions problem.
The product begins working where existing emission reduction technology leaves off. The AEPR™ actually works in times when the catalytic converter is not operating (such as cold starts, idling, and slow moving traffic conditions). It is intended to supplement the catalytic converter. As a lower temperature technology, it can reside further from the engine along the exhaust system.
The AEPR™ takes advantage of high frequency electrical excitation to promote ionization and has the capacity to store and release oxygen to oxidize the residues from the catalytic converter. The AEPR™ has the potential of greater effectiveness than the passive systems currently in use, both in further oxidizing products of incomplete combustion (carbon monoxide, NOx, hydrocarbons) and in trapping toxics for safe disposals.
The fact that the cartridge is removable allows the technology to be implemented via a single retrofit on almost any older or newer model vehicle. This also allows for the technology to adapt for future advances in technology and emission reductions. Since some emissions are chemically neutralized rather than burned, the cartridge must be replaced based on mileage on the vehicle, thereby creating an ongoing source of revenue.
The AEPR™ is comprised of an outer shell with a gas entry means, which can accommodate any vehicle exhaust system. The AEPR™ can be taken apart and re-assembled with modules of the same form, fit and function (and/or a different function) with minimal tools or skill and without the need for specialized facilities.
The AEPR™ is an improvement on the current pollution reduction controls, including the implementation of cleaner fuels, catalytic converters, and related hardware. While these measures have had the intended effect of reducing pollution causing emissions, they lack the adaptability to incorporate new advances in remedial techniques.
The goal of the AEPR™ technology is to provide a more aggressive method of emission reduction that is not possible by passive means.
The Business:
ADCapital sees an opportunity for rapid accelerated growth via licensing its technology to original equipment manufacturers, automotive manufacturers, and/or retail service shops. The technology is easy to install and its cost is in line with other repairs that might be necessary to pass governmental safety inspections such as brake jobs or other emissions issues.
Low Deployment Cost: The cost to retrofit an automobile with the AEPR™ platform is expected to be $130 CA ($105 US).
Lower Maintenance Cost: The cost to maintain or change out the recyclable cartridge is similar to that of an oil change ($20 CA or $16 US) to be performed every 3 months.
Quicker Time to Market: The retrofit is simple and can be performed by virtually any service shop.
With over 150,000,000 vehicles in the US and Canada and over 20,000,000 passenger vehicles and 7,000,000 commercial vehicles in California alone, there is ample opportunity to integrate the AEPR™ into today's marketplace.
Company Information:
ADCAPITAL US, INC .
7393 18 th Street
Burnaby, British Columbia, Canada 60173
(604) 619-1235
adcapital@telus.net
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This publication is an advertisement on behalf of the issuing Company mentioned in this advertisement and may not be construed as investment advice. This advertisement does not provide an analysis of the Company's complete financial position and is not a solicitation to purchase or sell securities. This publication may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the Company's Marketing materials and filing documents. Readers should consult with their own independent tax, business and financial advisors with respect to any investment, including any contemplated investment in the advertised Company. All information contained in this advertisement should be independently verified with the advertised Company and an independent securities analyst. The Publisher, its affiliates, officers, directors, subsidiaries and agents (collectively, the "publisher" of this advertisement) have been compensated 10,000 shares of ADCapital US, Inc. common stock from an independent 3rd party. The Publisher may offer, sell or purchase shares of AD Capital US without notice and may also seek to enter into additional transactions with either the Company or its shareholders during the period that this publication is available to the public. In preparing this advertisement, the Publisher has relied upon information received from the Company, although believed to be reliable, cannot be guaranteed. This advertisement is not an endorsement of the Company by the Publisher. The Publisher is not responsible for any claims made by the Company. Investing in low priced securities, such as those of the Company mentioned in this report, is not suitable for everyone. You should independently investigate and fully understand all risks. |