Global 8 Environmental Technologies, Inc. Signs Letter of Intent to Acquire Cutting-Edge Recycling Facility in Ontario
Jun 2, 2009 8:00:00 AM
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View Additional ProfilesNEWPORT BEACH, Calif., June 2 /PRNewswire-FirstCall/ -- Global 8 Environmental Technologies, Inc. (OTC Bulletin Board: GBLE), a company committed to preserving our planet through environmental consciousness, technology and education, today announced that it has signed a letter of intent to acquire a majority stake in Park Terrace Development Corporation, which operates a cutting-edge recycling facility in Peterborough, Ontario.
Due diligence on the facility has been completed by both parties, and the transaction is expected to close by June 15, 2009. The value of the property, located at 796 & 810 Technology Drive, Peterborough, Ontario was recently appraised at $5.8 million.
Park Terrace Development Corporation is one of several wholly owned subsidiaries of Courtice Industries, Inc. Courtice Industries' principal is Harvey Ambrose, a highly-respected entrepreneur and pioneer in Ontario's waste management, transportation and agricultural industries.
In addition to the Peterborough recycling facility, Mr. Ambrose owns a fully-operational waste transfer station in Oshawa with a contract for processing food waste, a large municipal and paper sludge processing plant in Niagara Falls, a 40-acre, $45 million organic recycling plant in Hamilton, and a lakeshore property in Gatineau, Quebec that contains a landfill, a quarry with more than 200,000 tonnes of high-quality granite, and 640 acres of land that can be utilized to showcase green technologies including geothermal energy, wind power, wastewater treatment and solar power.
"Global 8 has the right team and the right vision," said Mr. Ambrose. "Anyone who spends time with the company's executives or watches their corporate video will see how committed they are to solving today's environmental crisis, and protecting our planet for future generations, at all costs."
The 120,316 sq ft. recycling facility in Peterborough is expected to commence operations in the third quarter of 2009 and will be capable of processing at least 100,000 tonnes of Blue Box recyclable materials (paper, fiber, plastic, cardboard, and aluminum) per-year upon reaching full capacity.
Projected annual revenue from the sales of recyclable materials processed at the facility, at average market prices, is $14.5 million, with $9 million generated in EBITDA.
Park Terrace Development Corp. already has several contracts in place to generate millions of dollars in revenue from recyclable products processed at the Peterborough facility including: a contract with the city of Toronto to collect and process all of its Blue Box waste (approximately 30,000 tonnes per-year); supply agreements with local paper mills where all fiber produced at the facility will be purchased at, or above the current market prices; and an agreement with Trans Canada Recyclers, Inc. to sell 10,000 containerized metric tonnes of Grade 8 or better newsprint per-month processed at the Peterborough facility in the People's Republic of China and South East Asia. The company has also entered into discussions with Atlantic Packaging Products Ltd., an Ontario-based company with 25 manufacturing and distribution facilities, and more than 2,000 employees to provide them with recyclable materials processed at the Peterborough facility. Courtice Industries has a nearly 20-year relationship with Atlantic Packaging Products, Inc.
"We have a long-standing relationship with Harvey Ambrose and his group of companies," said Julio Ferreira, Chief Executive Officer of Global 8 Environmental Technologies, Inc. "This facility is the first of many joint ventures that we are pursuing with Courtice Industries."
Conveniently located in central Ontario within 500 miles from 60 percent of Canada's population, the cutting-edge recycling facility in Peterborough has a rail spur line adjacent to its operations allowing for the direct loading of commodities into box cars for shipment to the West Coast, and ultimately the Asia-Pacific region.
Future milestones for the facility include the adoption of renewable energy including geothermal and solar, and transforming the MRF into a self-sufficient, profitable Environmental Technology Center. Converting the facility into an Environmental Technology Center will provide significant cost-savings and positively impact our bottom-line.
"Wealthy countries like the United States and Canada spend nearly $120 billion a year on disposing of their municipal waste, and another $150 billion on industrial waste," said Mr. Ferreira. "This project will not only be a profitable revenue stream for the Global 8 family companies, but also a footprint for our Environmental Technology Centers, which offer communities around the world a profitable, sustainable model to improve their quality of life and preserve our planet."
About Global 8 Environmental Technologies, Inc.
Global 8 Environmental Technologies, Inc. works with world-class partners and consultants to provide solutions for the health and recovery of our environment. The company has the vision, the people, the know-how, the technologies, the financing and the contracts. It applies all these resources to create a clean and healthy global community for the next generation in a way that provides environmental and financial benefits to all our stakeholders. For more information, visit: http://www.g8et.com.
Forward-Looking and Cautionary Statements:
Certain statements contained herein, including, without limitation, statements containing the words "believes," "intends" and other words of similar import, constitute "forward-looking statements" within the meaning of Section 7A of Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include but are not limited to that we are in the process of furthering several of the key milestones we achieved last year and creating new growth opportunities for Global 8 and its subsidiaries, and that we will continue to locate new projects and strategic partnerships in 2009. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Global 8 Environmental Technologies, Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Global 8 Environmental Technologies, Inc. disclaims any obligation to update or to announce publicly the results of any revision of the forward-looking statements contained or incorporated by reference herein to reflect future events or developments.
Contact:
Global 8 Environmental Technologies, Inc.
Phone: 949-718-4425
mediarelations@g8et.com
Web: http://www.g8et.com
SOURCE Global 8 Environmental Technologies, Inc.
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Global 8 Environmental Technologies
Inc.
+1-949-718-4425
mediarelations@g8et.com
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