Q&A with Michael Atkinson – Legend Chairman

Power Saving Technology Helps Companies Conserve Energy, Reduce Greenhouse Gas Emissions and Reduce Costs

Q&A with Legend Power (V.LPS) Chairman Michael Atkinson

By Stockhouse Editorial

What does Legend Power Do?

Legend Power (TSX:V.LPS, Stock Forum)  is the developer, manufacturer and marketer of a patented product, the Harmonizer-AVR, which helps businesses use less electricity and save money while  reducing greenhouse gas emissions.  The Harmonizer-AVR saves money by regulating & reducing voltage supplied to commercial buildings.  Reducing voltage to save energy is not a new concept, but previous voltage reduction techniques were low-tech, costly, and inefficient and the ROI was non-existent.   We use modern engineering practices to cost effectively regulate a building’s supply voltage which allows for a payback in three years or less.  Essentially, we provide businesses with a new way to save energy.

What are the benefits of your technology?

Number one is saving money and offering a superior return on investment to our clients.  The less than three year payback we offer is what puts us in the energy conservation game, but it is not a key differentiator.  Our customers want to save energy, but there are alternative energy saving products that can also achieve a three year ROI.   We are different because of our industry leading 10 year warranty, our energy savings guarantee and the fact that we sell a single product installation that does not disrupt or affect a building’s valuable commercial space.   We have a very strong value proposition which cannot be matched.

Once our product is installed, it becomes part of the building’s electric distribution system and will remain functional over the course of the building’s entire life cycle.  The Harmonizer-AVR has no moving parts and has a very long life expectancy and requires minimal maintenance.  We offer a 10 year warranty to provide assurance to our customers that our product is robust, reliable and that it will save energy over the long term.

How does the Harmonizer differentiate from other energy  and cost saving retrofits?

Unlike alternative energy conservation solutions, such as a lighting retrofit which produces a significant amount of waste replacing old bulbs with new, the Harmonizer-AVR produces no waste.  Instead, we compliment the building’s existing electrical system by providing optimal voltage throughout the building to save energy.   The only byproduct of the Harmonizer-AVR is energy savings of up to 8%.

How does your technology work and are there infrastructure costs or adjustments that need to be made to existing systems?

There is no need to replace or retrofit existing electrical equipment; it’s a seamless integration into an existing electrical system with minimal interruption to business operations.  Once the Harmonizer-AVR is installed, the entire building will operate at an optimal voltage and will use less energy as a result.

The Harmonizer-AVR is made up of two key components: one that reduces the supply voltage from 3-8% and the other monitors a building’s incoming voltage level and applies the correct voltage reduction setting on the Harmonizer.  The AVR can change voltage reduction settings in real time without any disruptions to a building’s electrical supply which is key to  supplying a consistent optimal voltage supply.

Who are your customers?

Key customers include property management companies, big box retailers, grocery stores, really any medium to large commercial, industrial, government or hospital building that has a large load of electricity.

We chose to roll out and test our technology in Ontario, and specifically the Greater Toronto Area, because of the high energy costs they face.  GTA is head office to many of the property management companies and corporations and offers good government incentives for green initiatives. It’s also in close proximity to the eastern seaboard which will provide a great spring board for expansion.

Who are your competitors?

There really is no one company that can reduce overall energy costs the way we can. There are other alternatives for companies when spending capital for green initiatives, but we believe none offer the value proposition of our product.  Legend’s technology typically offers a return on investment of less than 3 years, offers the indsustry’s lowest cost of ownership and does so maintenance free with a  warranty on our product of 10 years and guaranteed savings for our customers.

Why should an investor consider investing in Legend?

With leading edge Green technology that is actively being adopted by Legend’s growing customer base it is rapidly approaching an increase in growth.   Legend focuses our sales efforts on corporations with 100+ locations.  The initial “try and buy” is at an early stage but successful installs should lead to incredible follow up business as these clients role out our product throughout their building network and where applicable, internationally.

How do you intend on growing your business and what are some of the catalysts that will help you do this? 

The Company plans on continuing to establish Ontario as a model market and grow this business.  Once firmly established, we’ll use this proven model to move into large markets in the Eastern US.  With credibility chips in hand and a large referral base to leverage, market penetration should occur more rapidly and accelerated growth will follow.

What are some of your key goals and milestones for 2013 and 2014?

In late 2013 to be cash flow positive and to move in to at least one new US market.  The goal for 2014 is to be profitable and move in to at least 3 more major US markets to accelerate the rapid growth we believe is imminent.

Tell me about your management team and what experience do they bring to the table? Our key figure is our President & CEO, Randy Buchamer.  Randy brings a wealth of knowledge in successfully turning around small companies and executing on business plans.  Randy excels in creating a team vision and implementing the vision for success.  Some of Randy’s past experiences include being a key executive of the Pattison Group and President of Mohawk Oil during its sale to Husky.

We also have a very strong leadership team with technical, financial and business development experience.  In addition, we are backed by a strong board of directors with a wealth of public sector knowledge and experience in high growth companies.  I am confident Legend has the right people in the right places to achieve our key goals.

 

Disclosure: Legend Power is a Stockhouse client.