September 08, 1999 09:45
Green Oasis Environmental, Inc. and Kwikpower International, SA Sign Letter of Understanding Regarding Green Oasis Process Technology
CHARLESTON, S.C. and LONDON, Sept. 8 /PRNewswire/ -- Green Oasis Environmental, Inc. (OTC Bulletin Board: GRNO), headquartered in Charleston, South Carolina and Kwikpower International, SA, a privately held independent fuel technology company based in London, England have announced today that they have signed a Letter of Understanding and Agreement regarding the transfer and assignment to Kwikpower of the undivided rights, license, patent and privileges to the Green Oasis technology (with worldwide rights, other than as noted in the Letter of Understanding). The agreement is subject to the preparation of a detailed agreement and final diligence, with the intent of having the due diligence and the agreement completed by September 24, 1999, with closing in early October.
The consideration to Green Oasis is a combination of cash, notes, common stock, warrants and an equipment deposit. Upon consummation, the impact of the agreement is estimated to have a value of $30 million in Green Oasis' favor, and create a new business plan for Green Oasis. The agreement will also affect the ownership of Green Oasis' primary assets, in return for an immediate and expanding business income stream for Green Oasis from the manufacture and installation of GOE processing plants, with a throughput royalty on each plant installed for a period of 20 years.
William D. Carraway, President of Green Oasis, stated that, "The agreement executed August 25, 1999 was reached after negotiations which had been ongoing since the visit to Charleston in January 1999 by Dr. James R. Watkins, CEO and President of Kwikpower International, SA. Since the first of the year, Green Oasis has seen the issuance of its US process patent on the technology, and filed for patent protection in Europe, and established the opportunity to finance exported Green Oasis processing plants through the US EX-IM Bank finance programs.
"The combination of the upward movement in the retail price of fuels, and the improvement in the overall world economy have resulted in a timely agreement that should benefit the shareholders of both Green Oasis and Kwikpower. Kwikpower's primary focus is in the energy and environmental fields on a worldwide basis, both directly and through Joint Ventures, and the synergies between the two companies' technologies will allow wider exposure and rollout of our technology in the marketplace. Kwikpower is currently completing a private placement of common stock in Europe prior to seeking a listing on the Nasdaq market system.
"The new relationship, when completed, will create a new focus for Green Oasis and created an estimated 40 new jobs in the local manufacturing sector. The agreement will create a Joint Venture within the Southeastern US with expanded waste oil plant processing operations, and will allow greater Joint Venture opportunities with existing customers in Turkey, Spain, Morocco, Malaysia, South Korea, China and Taiwan where fuel prices are higher than the US."
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