WAST from Dec 22 news, plus the $11MM/year from the Startec deal.
$1,000,000 of Net Income Projected From Technology
Systems of WasteMasters
EL RENO, Okla., Dec. 22 /PRNewswire/ -- WasteMasters, Inc. (OTC Bulletin Board: WAST - news), based in El Reno,
Oklahoma, has acquired an interest in royalties generated from Section 29 Federal Income Tax Credits in exchange for
9,000,000 of its restricted common stock. The revenues from these royalties will exceed $1,000,000 per year all of which will result in net income.
Ultimately, WasteMasters, Inc. receives cash from a monetizer for its Income Tax Credits. This arrangement is strictly a
financial one and results in all revenue generated increasing WasteMasters Net Income from Operations. It is expected that
these credits will exceed $1,000,000 per year over seven years.
WasteMasters Chairman Leon Blaser stated, ''WasteMasters, Inc. has been working diligently in obtaining Operating
Agreements to manage briquetting systems that generate Section 29 Federal Income Tax Credits. While we continue to pursue
this goal it is incredible that we have been able to make this purchase. This will provide a nice base of consistent cash flow for
the foreseeable future. I believe that this success is simply the first step in moving forward into becoming the premier operator
of these sites nationally.''
''We have methodically reduced overhead and operating costs, shed eighteen operating units and negotiated over $25,000,000
in settlements,'' said Acting Chief Financial Officer Dennis O'Neill. ''It is time now to grow again. With lower operating costs
and reasonable revenue levels, we anticipate the first quarter of 2000 to certainly surpass the previous three first quarters in
revenues and net income.''
David Fuselier, of The Ridgefield Group, WasteMasters' turnaround consultants, adds, ''It appears that now is the time that
WasteMasters establishes its course, its future. Over the past year our staff has diligently pursued the return of shareholder
value to WasteMasters. We believe WasteMasters has been stablized, long-term litigation has mitigated and the whole of the
organization is now variable cost based. Any gains in revenue fall directly to the bottom line. These two recent revenue
acquisitions are the beginning of the future of WasteMasters.''
For further information call Douglas Holsted at 405/262-0800.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: the statements contained in this news
release which are not historical facts may be ''forward-looking statements'' that involve risks and uncertainties which could
cause actual results to differ materially from those currently anticipated. For example, statements that describe WasteMasters'
hopes, plans, objectives, goals, intentions, or expectations are forward-looking statements. The forward-looking statements
made herein are only made as of the date of this news release. Numerous factors, many of which are beyond WasteMasters'
control, will affect actual results. WasteMasters undertakes no obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances. This news release should be read in conjunction with WasteMasters' annual report
on Form 10-KSB for the fiscal year ended December 31, 1998 and other filings with the U.S. Securities and Exchange
Commission by WasteMasters. |
