CET Environmental Services, Inc. Board Authorizes Repurchase of Common Stock From Former Director
ENGLEWOOD, Colo., May 2 /PRNewswire/ -- CET Environmental Services, Inc. (Amex: ENV) announced that it had reached an agreement to purchase a significant block of its common stock from Douglas Cotton, the former Director and Executive Vice President of the Company, as well as settle certain issues surrounding his resignation in September, 2000.
Under terms of the agreement, the Company will purchase Mr. Cotton's present holdings of CET Environmental Services, Inc. common stock, which amounts to 631,514 shares or approximately 10% of the outstanding shares. Initially, the Company will purchase 189,454 shares for $75,000 in cash. The remaining 442,060 shares will be purchased for a maximum of $175,000, the payment of which is contingent upon receipts from past due receivables.
The past due receivables amount to $6.2 million and arise from work performed by the Company on "Brownfields" projects known as Hercules and Porta Bella on behalf of Remediation Financial, Inc. The Company is pursuing recourse under a Deed of Trust related to the Hercules project and the filing of a mechanics' lien on the Porta Bella project. The agreement with Mr. Cotton provides that 5% of proceeds from these receivables as collected, up to the maximum of $175,000, will be applied to the purchase of the stock.
Steve Davis, President and CEO of the Company, said he was pleased with the agreement "in that it aligns the interests of the Company and Mr. Cotton in dealing with the Remediation Financial situation." He noted also that "the agreement allows the Company to repurchase a significant block of stock at an attractive price without commission costs and thereby remove substantial market overhang." |
