Global Resources, Inc. Signs Letter of Agreement To Acquire Carbon Green NA, Inc.
Hunt Global Res (OTCBB:HGCO)
Intraday Stock Chart
Today : Wednesday 9 February 2011
Hunt Global Resources Inc. (OTCBB: HGCO) announced today that it signed a binding Letter of Agreement with the majority shareholders (representing not less than 85%) of Carbon Green NA, Inc. the holder of Carbon Green assets that include an operating tire recycling plant, license agreements and worldwide patents for the only proven method of recycling 100% of scrap tires with a near zero carbon footprint.
"We are extremely delighted to make this announcement,” said George T. Sharp, CEO of Hunt Global Resources, Inc. “This acquisition fits in with our long term strategy to expand our position in the marketplace by providing a wide range of sustainable green technologies.
In recent months we have worked with the Carbon Green people to develop a low NOx fuel oil (derived from Carbon Green’s tire recycling process) to achieve a renewable fuel that is cleaner burning and has a higher BTU than traditional fuel oils that are on the market today.
The Carbon Green system was created during a 5-year span of developing, testing, patenting and building a fully operational system that breaks-down, separates and recycles 100% of scrap tires into reusable materials. We plan to build 10 plants in the United States, during the next 5 years, to address the growing environmental problems caused by hundreds-of-millions of waste tires that end up in landfills and are polluting our environment by being burned as industrial fuel," Mr. Sharp concluded.
The transaction will allow Hunt Global Resources, Inc. to take possession of Carbon Green NA. Inc.’s 189 worldwide patents and its operating plant located in the nation of Cyprus, which is currently the world’s largest commercially operating pyrolysis plant.
Hunt will also assume existing license agreements that call for Hunt to receive $2 million dollars per year for 5-years beginning this year from licensees (who would otherwise forfeit licenses), and additional royalties projected to be $60 million by year end 2011, if sales and construction goals are met by licensees. “We are very pleased to become an affiliate of Hunt Global Resources, Inc which will enable Carbon Green NA, Inc. to move to a very important next level, that being the planned roll out of plants throughout North America,” stated John Novak CEO of Carbon Green NA Inc. “I believe that this affiliation joins the strengths of Hunt Global Resources, Inc. and their cutting edge technology in biofuels coupled with Carbon Green NA, Inc.’s leading tire recycling technology, will allow us to construct and operate each $50 million plant successfully”.
Upon completion of the transaction, Carbon Green NA, Inc. will become an 85% owned subsidiary of Hunt Global Resources, Inc. The parties have agreed to close the transaction on or before February 28, 2011, upon completion of definitive contracts. Hunt will endeavor to acquire the remaining 15% of Carbon Green NA, Inc.
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