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GREEN OASIS ENVIRONMENTAL, INC. AND KWIKPOWER INTERNATIONAL, SA SIGN LETTER OF UNDERSTANDING REGARDING GREEN OASIS PROCESS TECHNOLOGY
WEDNESDAY, SEPTEMBER 08, 1999 9:30 AM
- PRNewswire
CHARLESTON, S.C. and LONDON, Sep 8, 1999 /PRNewswire via COMTEX/ -- 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."
About Green Oasis Incorporated in 1991, Green Oasis' patented process technology is designed to produce high quality, marketable fuels from waste oils in a one step, closed cycle process. The Company manufactures its proprietary equipment for its own use, as well as for clients in a worldwide market.
Dr. James R. Watkins, CEO of Kwikpower, added, "This Agreement with Green Oasis will allow us access to Green Oasis' proprietary technology for the processing of waste oils, which we believe is the most advanced and cost effective process in the marketplace.
"This agreement will allow us to recycle waste oils into high quality feedstocks, which can be blended into our clean burning ENGAS alternative fuel formulations at price levels which will allow us to compete head to head with conventional fuels, while simultaneously solving one of society's most pressing waste disposal problems. This is a key step which will bring us one step closer to realization of the goal of bringing our ENGAS alternative fuels to the markets.
"Our vision is creation of a worldwide network of Green Oasis waste oil to diesel processing facilities producing clean renewable feedstocks for ENGAS fuels."
About Kwikpower Incorporated in 1996, Kwikpower International, SA owns the exclusive worldwide rights for their proprietary fuel technology called "ENGAS" and their "Co-solvency Fuel Stabilization" (CFS) technology (an ashless non-metallic fuel component system which stabilizes alcohol-based fuels against phase separation, and has application as fuel additives for conventional fuels). Kwikpower also owns a "Direct Microbial Conversion" technology invented at the University of Missouri-Kansas City, which is a thermophilic bacterial process for efficiently converting cellulose to ethanol and butanol at high concentrations.
Kwikpower developed the ENGAS gasoline, diesel (ENGAS-D), and biodiesel (ENGAS-BD) formulations, (all of which incorporate renewable fuel components) in response to the Clean Air Act Amendments of 1990 and the Energy Policy Act of 1992.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve risk or uncertainties that may individually or collectively impact the matters herein described, including but not limited to: risks associated with the uncertainty of future financial results, regulatory approval processes, the impact of product acceptance, economic, competitive, governmental, results of litigation, technological, and/or other factors outside the control of the Companies, and other uncertainties as may be detailed in Green Oasis' filings with the Securities and Exchange Commission in the future.
SOURCE Green Oasis Environmental, Inc.
(C) 1999 PR Newswire. All rights reserved.
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CONTACT: William D. Carraway, CEO-President of Green Oasis
Environmental, Inc., 843-722-5771, or grno@awod.com; or Dr. James R. Watkins,
CEO-President of Kwikpower International, SA, +44-171-499-1166, or
jim@mailbox.co.uk
WEB PAGE: greenoasis.com
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