WasteMasters, Inc. Acquires Philadelphia Waste Assets for $4,340,000
Business Wire October 18 2000 12:46AM PT
EL RENO, Okla.--(BUSINESS WIRE)--Oct. 18, 2000--WasteMasters, Inc. (OTC BB: WAST) announced that it completed the acquisition of the Mid-Atlantic waste operations of Global Eco-Logical Services, Inc. (Pink Sheets: GECL). The operations consist of a commercial and industrial collection, recycling and transportation business in Philadelphia, New Jersey and surrounding markets, along with a 141 acre construction and demolition landfill in Eastern Ohio.
The Company purchased the operations from Global in a transaction valued at approximately $4,340,000, consisting of 15 million shares of common stock, valued at $2,250,000 based on the recent market price of $0.15 per share, and the assumption of long-term indebtedness with a principal amount of $2,090,000.
Based on the audited financial information provided by Global, the operations are estimated to generate $2,800,000 in annualized revenues, positive operating earnings, and include approximately $5,000,000 in fixed assets. The landfill was recently re- permitted, having airspace reserves well in excess of 10 million cubic yards. The useful life of the landfill is estimated at 20 years, before any additional expansion or development.
Leon Blaser, Chief Executive Officer, stated: "The Global deal represents the first results from the hard work that we have put in over the past year to restructure the Company and create shareholder value. We expect to announce in the near future additional positive news for shareholders, including the completion of our reorganization as a Delaware corporation, the settlement of additional material liabilities and the infusion of new capital into the Company, as well as additional acquisitions to complement the operations acquired from Global." |
