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Arete Industries, Inc.
Arete Industries Signs Letter of Intent to Purchase an Interest in Tri-State Transfer Industries, LLC
Tuesday March 4, 9:00 am ET
NIWOT, Colo., March 4, 2003 (PRIMEZONE) -- Arete Industries, Inc. (OTC BB:ARET.OB - News), a publicly traded business development company, announced today that it signed a non-binding letter of intent to purchase a 5% non-managing membership interest in Tri-State Transfer Industries, LLC, of Stratford, Connecticut. Tri-State is a development stage company in the business of owning and operating municipal solid waste (``MSW´´) transfer facilities and bulky waste construction and demolition (``C&D´´) recycling facilities, in the eastern United States. It is presently involved in developing its first such facility in Grosvenor-Dale, Connecticut, to serve communities in Connecticut, Massachusetts and Rhode Island.
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The LLC interest will be purchased with restricted shares of the Company's common stock. The transaction is subject to completion of due diligence and approval of formal documents, scheduled to be completed within 15 days of the date of this release. Tri-State is in the process of completing site acquisition contracts, formalizing and presenting development plans, obtaining building permits, purchasing equipment, securing commitment letters from municipalities for delivery of MSW to the site, and securing financing for equipment purchases and construction of the facilities.
``The Company is very fortunate to have the opportunity to participate in this venture, which will in the near future provide us with both revenue and asset value, as we launch our roll-out as a Business Development Company,´´ stated Tom Raabe, CEO of Arete Industries, Inc. ``Tri-State has in place an experienced management team that knows how to set up and run these facilities, and has the contacts and ability to obtain the financing to bring the first facility into production in the current fiscal year. They are keen on building up quickly to meet an ever increasing demand for these facilities in the northeast of the country where municipal waste management and construction material recycling is a real issue. This capability, plus the Tri-State management team´s sincere interest in going public in the medium term, makes this a perfect first deal for the Arete Industries, Inc. Spin-Off Dividend Distribution Program,´´ Raabe continued.
The Company's ``Spin-Off, Dividend Distribution Program´´ is designed to allow qualified businesses that Arete acquires to go public by either issuing to Arete´s shareholders a stock dividend or effecting a rights offering of the subsidiary´s stock after an incubation period.