US BioTec Announces Initial Findings of Due Diligence on First Energy Acquisition
USBO, an emerging player in the rapidly growing bio-chemical sector of the annual multi-billion dollar industries related to agriculture, lawn and garden, and golf course products, announces today it has accumulated encouraging financial and corporate data from its "due diligence" activities related to the acquisition of the PHS Group, Inc.
US BioTec's initial research shows the total combined cash flow of all of four PHS Groups subsidiaries was over $81,000,000 in gross revenues in the fiscal year of 2005-2006. This number was generated by refining only 823,380 barrels of crude oil in conjunction with the company's other operations. US BioTec firmly believes that the company's revenue can be significantly higher than the $81 million number if it increases refining operations at the PHS Refinery.
US BioTec estimates that annual revenue from this acquisition can be increased dramatically if refining production is ramped up close to the refinery's true capacity of 4,400 barrels of oil per day. If this projected number is reached, US BioTec could expect to be refining approximately 1,474,000 barrels annually.
Production of 4,400 barrels per day will create an increase in capacity of approximately 44% over the total refined crude in the 2005-2006 fiscal year. Historical production data shows that 1,474,000 barrels of crude should produce approximately 34,000,000 gallons of gas, #1 and #2 diesel. The PHS Group currently owns or has contracted a total of 57 stations for retail gas sales.
However, research shows the maximum refining capacity of the refinery subsidiary is 5,500 barrels of crude oil per day with equipment upgrades, and therefore the refinery is capable of an even larger short term increase in refined products to approximately 1,842,500 barrels per year.
"We have been impressed with the expansion potential in refining and the potential for dramatically increasing sales in various markets, plus the potential for quick diversification into alternative fuels, that has been discovered through the thorough due diligence of our team of very talented advisors. And, we are equally excited about the possibility of adding $80-$100 million in additional revenues and very substantial net profits for years to come. Everyone at USBO is encouraged to see all aspects of this acquisition moving forward," says Jimmy Joyner, CEO of US BioTec.
About US BioTec
US BioTec was established to profitably develop, manufacture, market and distribute bio-degradable, non-toxic and non-carcinogenic products to agriculture, the commercial turf industry, forestry, golf courses, professional landscapers, nurseries and mass market retail lawn and garden markets. USBO is striving to be the U.S. market leader in the expanding bio-chemical sector of the annual multi-billion dollar agricultural chemical marketplace. It has already begun taking the necessary steps to negotiate distribution and joint venture contracts to facilitate its nationwide expansion over the next few years. The Company's products are designed to rehabilitate soils, repel insects and increase crop (plant) yields through environmentally friendly alternatives to toxic man-made pesticides and caustic synthetic fertilizers and herbicides. The company also operates an OTR trucking fleet through its TelStar Logistics Corp. subsidiary and is exploring entry into the petrochemical/alternative fuels market through its newest subsidiary, US BioTec Energy Services Corp. To learn more about US BioTec and its products, please visit www.usbioteccorp.com.
Source: Market Wire (December 14, 2006 - 9:30 AM EST)
DIVERSIFICATION IS RULE #1 -- YOU ALONE ARE RESPONSIBLE FOR YOUR INVESTMENT DECISIONS -- ALWAYS CONDUCT YOUR OWN DUE DILIGENCE -- NEVER INVEST MORE THAN YOU CAN AFFORD TO LOSE -- HOPE IS NOT AN INVESTMENT STRATEGY -- PATIENCE !!!
