NEWS:Wastech, Inc. Announces Financing Agreement in Excess of $2 Million with Largest Shareholder
CHARLESTON, S.C., May 3, 2006 (PRIMEZONE via COMTEX) -- Wastech, Inc. (Pink Sheets:WTCH) (the "Company") today is pleased to announce it has reached an agreement with its largest shareholder, Environmental Energy Services, Inc. (Pink Sheets:EESV) for additional financing valued in excess of $2,000,000.
Proceeds from the funding are allocated to the fulfillment of 1) the successful Closing of the Company's recently announced acquisition of approximately 44,000 acres of subsurface coal and mineral rights under enriched acreage throughout West Virginia, as well as its strategic purchase of oil and gas rights within exactly 5,898.49 acres in Fayette County; 2) the completion of pilot trucks on the Company's patented, new waste technologies; 3) the continual progress of Company auditing and reporting requirements; and 4) additional working capital through 2007.
Pursuant to the Stock Purchase Agreement, among other things, Environmental Energy will initially contribute $741,500 in funding in exchange for 14,830,000 shares and, on or before August 25, 2006, an additional funding requirement of $1,130,000 in exchange for 22,600,000 shares. By and through this and previous agreements, Environmental Energy may achieve in excess of 50% of Wastech common stock by February 2008. Further, Environment Energy was granted an additional nominee to the Company's existing one-member Board of Directors.
Mr. Richard D. Tuorto, President and CEO commented on the Agreement "as a milestone for the Company's operational and financial future, one built not only on its waste holdings and expertise, but also on alternate-energy technologies and their beneficial impact for our environment."
Mr. A. Leon Blaser, Ph.D., President and CEO of EESV, and advisory Board member to Wastech commented: "This Agreement provides all the tools for the success of Wastech into the future, while solidifying Environmental Energy's control and equity position in the process. I am pleased with the outcome, and consider the result a victory for both companies."
The above release should be read in conjunction with submissions of the Company filed with the Securities and Exchange Commission on Form 8-K, and can be obtained online at www.sec.gov or by request directly to Wastech.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release which are not historical facts may be "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those currently anticipated. For example, statements that describe Wastech's hopes, plans, objectives, goals, intentions, or expectations are forward-looking statements. The forward-looking statements made herein are only made as of the date of this news release. Numerous factors, many of which are beyond Wastech's control, will affect actual results. Wastech undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. This news release should be read in conjunction with Wastech's annual report on Form 10-KSB for the fiscal years ended December 31, 2002, 2001 and other filings with the U.S. Securities and Exchange Commission.
This news release was distributed by PrimeZone, www.primezone.com
SOURCE: Wastech, Inc.