IBR is a Direct Competitor of Thermo Tech. Looks like they are doing very nicely…
Cayman
International Bio-Recovery Corp - News Release
Int'l Bio-Recovery Smells Money In Garbage Deal
International Bio-Recovery Corp IBR
Shares issued 14,287,511
2000-10-27 close $3.45
Monday Oct 30 2000 News Release
Mr. Ben Van Dyk Reports:
International Bio-Recovery confirms that it has reached an agreement with strategic investors to construct IBR plants in China using the company's unique technology designed to convert organic waste into valuable fertilizer products.
The strategic investors have commenced plans to construct and operate IBR plants under the terms of a master licence agreement between International Bio-Recovery and Canada Pacific Sunshine Technology Co. Ltd. (master licensee).
The master licensee has already signed an agreement to establish a joint enterprise in Nanhai, Guangdong, in China. The production scope of operation of the joint enterprise is to produce high-quality organic fertilizer using the world's most advanced biotechnologies. The initial annual production scale of the joint enterprise will be the treatment of 220 tonnes of urban organic waste per day.
A non-refundable prepayment of $330,000 has been paid by the master licensee to IBR toward the licensing fee for the initial IBR plant.
The agreement contains provisions for the master licensee to obtain exclusive rights to specific territory within China. The master licensee will pay a further $400,000 to IBR for such rights. This payment will be held as a deposit for additional plant licensing fees. Exclusive rights will be granted only upon the master licensee meeting certain performance criteria, including the commencement of the initial IBR plant.
After the initial IBR plant has been operational for a period of three months, the master licensee will pay a further $270,000 to IBR as a non-refundable prepayment for future anticipated licensing fees.
The agreement provides for the payment of royalty fees to be paid by the master licensee to IBR for all IBR plants as they become due under this agreement. It is expected that a plant with a capacity of 220 tonnes per day will generate royalty fees to IBR of $240,000 per year.
The agreement requires that specific performance standards be met in order to maintain the right to exclusivity. In particular, the master licensee shall have completed construction of the initial IBR plant on or before Dec. 31, 2002. The agreement calls for the master licensee to proceed with a minimum of one additional IBR plant per year commencing July 1, 2003, having a minimum capacity of 220 tonnes per day. On or before July 1 of each year thereafter, the master licensee shall have paid an initial licensing fee for each additional IBR plant. This minimum performance standard will apply each year through to and including July 1, 2011. A plant with a capacity of 220 tonnes per day will generate a licensing fee of $495,000 payable to IBR.
The strategic investors are in the process of sublicensing from the master licensee the IBR Technology to Galaxy Power Enterprises Limited. The plan includes a provision to take Galaxy Power public on the Hong Kong Stock Exchange to raise the necessary capital required in this undertaking.
Galaxy Power is a privately owned company in Hong Kong which controls 57 per cent of Shenzhen Xiaoqing Environmental Engineering & Equipment Co. Ltd., in China, which has been involved in environmental protection engineering projects since 1989. Xiaoqing's projects have included water and waste water engineering, sewage treatment, gas engineering, solid waste treatment, noise control, and environmental assessment in China. The strategic investors and shareholders in Galaxy Power include Earnest Investment Holdings Limited and Welback Holdings Limited, which are both listed on the Hong Kong Stock Exchange, and Bailin Zhang.
The company has sufficiently acquired security under the terms of this agreement to protect its proprietary technology. Specifically, the company has obtained guarantees and indemnities which are supported by an irrevocable letter of credit and personal guarantees of the principals of both the master licensee and Galaxy Power. The irrevocable letter of credit will be issued by a recognized international chartered bank.
"It is widely recognized that the opportunities for this technology in China are immense," stated Ben Van Dyk, IBR president. "The problems of a growing modern society accentuate the need for technologies such as IBR's to efficiently treat the byproduct of such growth. IBR's technology will be marketed in China to handle biosolids, animal wastes and organic waste from food production. The difficulties being encountered in China over the disposal of these organics are considerable and far reaching. China is aggressively seeking solutions to the problems associated with the widespread use of chemical fertilizers in commercial agriculture. The need for organic based fertilizers has never been more acute. As such, the introduction of the IBR technology to China is very timely. In order to penetrate the markets in China, it is necessary that substantial capital formation can be obtained. We are very committed to working with this group to ensure that the plans to successfully implement the IBR technology in China are realized."
IBR's innovative approach in processing organic materials brings a new concept to organic fertilizer production. Applying biotechnology and fermentation engineering principles and providing the optimal environment for the growth of naturally occurring thermophilic bacteria, IBR is able to produce uniformly digested material that is free of pathogens and inorganic contaminants. IBR products are well below the limits for heavy metals and vector attraction set by the Canadian standards and the Environmental Protection Agency (EPA) standards for fertilizer. Stabilization of the process allows for the production of customized products for a wide variety of agricultural applications 365 days a year.
(c) Copyright 2000 Canjex Publishing Ltd.
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