GenCell Energy announced an additional phase in its strategic cooperation with the Federal Electricity Commission of the State of Mexico CFE, the state-owned power utility. GenCell is awarded a repeat order from CFE valued at $4.5 million for the supply and delivery of mutiple additional GenCell systems and services. The Company intends to deliver the Systems to its local partner in Mexico before the end of the calendar year 2023.

For fulfillment of its obligations as per the agreement, the Company is expected to receive payment in several installments until the end of the first half of 2024, subject to the Local Partner receiving payment from CFE in accordance with the terms of the additional tender. This dealf Hollows the successful delivery and satisfactory operation of 74 of the Company's systems over the last two years. The additional units being purchased will also provide backup power to CFE substations; Furthermore, the tender grants CFE the right within the first six months of 2024 to increase the number of units in the order by up to double the current amount.

The current deal was signed after CFE held another tender to purchase additional backup power equipment and selected GenCell's local partner in Mexico as its winner. Consequently, GenCell will supply its systems along with support services for the warranty period stipulated in the additional tender to its local partner in Mexico, who will deploy and maintain the GenCell systems. GenCell is confident that the winning of the additional tender by its local partner is an indication of the satisfaction CFE derived from the GenCell backup power systems which were supplied and deployed successfully in the previous CFE tender. The Company believes that this transaction may contribute to its positioning in its target markets and, in alignment with its strategy and objectives, may help GenCell expand its operations with new clients in the utilities markets.