WAST - WasteMasters Announces $3,000,000 Litigation Settled for $1.00 Per Share
EL RENO, Okla., Jan. 11 /PRNewswire/ -- WasteMasters, Inc.
(OTC Bulletin Board: WAST) announced today that it reached agreement with
Coastal Ltd., LLC and Coastal Venture Group to settle two lawsuits, and
various other matters, in exchange for WasteMasters stock valued at
approximately $1 per share and warrants valued at $.40 per share. Coastal had
been a lessor of property in Baltimore where WasteMasters had intended to
build and operate a transfer station. Due to strong opposition from
surrounding neighbors the transfer station's permit was not obtained and
WasteMasters discontinued its obligations under the lease. In addition,
Coastal had loaned WasteMasters, Inc. money to acquire and operate two
additional landfills. WasteMasters, Inc., due to past difficulties, was in
default on its payments under these loans. Subsequently, Coastal filed suits
seeking enforcement of the contract and payment for damages of $3,000,000.
Douglas Holsted, President of WasteMasters, stated: "I am proud of the
Company's accomplishments. As we rid ourselves of these outstanding matters,
WasteMasters grows stronger. Those having unresolved matters against
WasteMasters are finding the stock to be a very attractive settlement at
current prices. This is particularly true in light of our recent
announcements of the income we expect from Section 29 Federal Income Tax
Credits and the proposed acquisition of Startec, Inc."
Bill Shurick of Coastal stated, "We are very happy to put this matter
behind us. Coastal believed in WasteMasters when it signed the lease and made
the loans. It's unfortunate that local politics thwarted WasteMasters'
efforts. However, we made a simple decision that Coastal, in the long run,
can substantially increase its return on investment by accepting an
undervalued stock rather than pursuing further litigation. I give Leon Blaser
of WasteMasters a lot of credit for his input in this negotiation."
David N. Fuselier of the Ridgefield Group, the company's turn-around firm,
stated, "This settlement reflects WasteMasters' commitment to completely
settle all outstanding legal matters. We fully expect others to settle in a
similar manner."
For further information contact Douglas Holsted, President of
WasteMasters, Inc. 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.
SOURCE WasteMasters, Inc.
-0- 01/11/2000
/CONTACT: Douglas Holsted, President of WasteMasters, Inc., 405-262-0800/
(WAST)
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