Thermo Tech(TM) announces lease of Hamilton facility
Quotation Market: Pink Sheets
Quotation Symbol: TTRIF
PETALING JAYA, Malaysia, July 29 /CNW/ - Thermo Tech(TM) Technologies Inc. (the "Company") is pleased to announce today that its subsidiaries, Thermo Tech(TM) Waste Systems Inc. and Hamilton Bio Conversion Inc. have completed a lease agreement with American Water Services Canada Corp. ("American Water Services") for the use of the land and operation of its facilities in Hamilton, Ontario.
Subject to normal and specified business performance provisions, the lease is for a total period of twenty years. In summary form, the terms of the lease are as follows:
- quarterly lease payments through revenue sharing, calculated as 40% of "Business Income", a term defined within the lease agreement.
- an advance on the lease payments, in the amount of approximately $1.6
Million paid according to a release schedule, currently being
finalized.
- American Water Services may sublease unused parts of the plant to
compatible third parties in order to increase overall operating
revenues.
- The Company has the option to purchase all or part of finished
biosolids pellets at the lesser of a) $1.00/tonne or b) the best price
available to any other customer, and to market those pellets. American
Water Services will be entitled to a portion of the revenue from such
end product sales, provided that they have assisted in developing the
market.
American Water Services shall be responsible for all normal costs of operations and maintenance, such as insurance, utilities, taxes, levies and assessments, and shall be entitled to deduct these as normal business operating expenses.
American Water Services requires the Hamilton facility to meet the current and future needs of its ongoing business, which is primarily based on processing and drying of wastewater treatment sludges. American Water Services is not operating the Thermo Master(TM) technology and is not a licensee of that technology. The Company has been able to realize its goal to simplify its business and optimize its resources by reducing its involvement, at least for the time being, in the North American market. The Hamilton Bio Conversion lease arrangement frees both human and financial resources for other priorities, while also realizing a benefit from existing assets.
As required under the terms of the decision of Mr. Justice Groberman of the Supreme Court of British Columbia, given January 2002, notification of the lease agreement was made to Milverton Capital Corporation. No objection was filed within the allowed time and the lease agreement was duly concluded.
The Company is also pleased to announce that its Malaysian subsidiary, Firmaplus Sdn Bhd, has continued its efforts to place Thermo Master(TM) Mark III-P plants in association with palm oil mills and is effectively ready to proceed with launching its business in this market.
Based on earlier work with its Mobile Demonstration unit, originally sited at the MPOB experimental mill at Labu, and on further work at a location near Ipoh, an important palm oil production region to the North of Kuala Lumpur, Firmaplus has developed an end product profile for its projected commercial end product.
Two extensive market surveys were commissioned through Asia Market Intelligence (Malaysia) Sdn Bhd. The first study profiled the Malaysia animal feed market and the most prominent ingredients employed including the availability of locally produced blending agents to be used as part of the Mark III-P process, and pricing structures. Finally, the study gave an overview of the feed integration component (feed millers) serving the commercial animal production industry. The second survey employed certain product specific information in a market concept study with the goal of establishing a projected price range for the commercial product. In short, the feed industry supplies some 4,500,000 tonnes of feed per year, but by far the largest proportion of this is made up of corn and soyabean meal, both of which are imported and trade as commodities at current prices of RM 420 and RM 1055, respectively (or about US$110 and US$278). Corn represents nearly 60% of the total volume of feed materials. The second study determined that according to a significant sampling of the industry integrators, technical experts (used as benchmark anchors) and end users, the market would accept the Mark III-P product at a price range superior to corn. With revenues based on such a price, and with reasonable capital cost and operating expense models developed specifically for the Malaysian market, the Mark III-P system can be projected to operate profitably while delivering all the benefits projected for the palm oil industry, the environment, the government (in terms of employment and import replacements) and of course, the Company itself.
Firmaplus has contracted with a local engineering consultant, Mensilin Holdings Sdn Bhd, working closely with its representative, Mr. Noel Wambeck to prepare all the necessary engineering development, specifications, permitting and local cost estimating required for plant construction.
While the necessary preparatory work has been ongoing by way of process evaluation, engineering and market research, Firmaplus marketing representatives have been in contact with a large cross-section of the target industry, both large and small, to ensure that oil millers will be ready to receive business proposals. The Company is pleased to report an enthusiastic response. The detailed preparatory work has also allowed the financial and business group to evaluate the economic viability of Thermo Master(TM) Mark III-P plants across the range of sizes of common palm oil production mills. Firmaplus management is pleased to report that an economic match is available for oil mills somewhat smaller than the average 45 tonne per hour (based on receiving of fruit bunches) right up to the largest mills currently in operation. The modular nature of the Thermo Master(TM) core process system and the relatively steady year-round production are primarily responsible.
Mr. Charles Miller, CEO of Firmaplus and President of the Company, stated, "I am particularly pleased to be able to report on behalf of Ismail Radi and all of our staff and consultants, that some major developments have come to fruition of late. Completing the lease agreement for Hamilton is a major step forward. All the detail work in Malaysia, although each item may seem minor, is now coming together to put us in a strong position to go forward with our business plans."
Thermo Tech Technologies Inc. is involved in organic waste recycling. Thermo Tech's patented thermophilic process is utilized in compact and environmentally friendly Thermo Master(TM) plants to convert biodegradable food waste into high protein animal feed and wastewater treatment sludges into fertilizer concentrate.
Certain statements contained herein are "forward looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management. Because such "forward looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied. Such "forward looking statements" include but are not limited to, competitive factors, general economic condition, customer relations, relationships with vendors, government supervision and regulation, product introductions and acceptance, technological changes in industry practices, and other factors discussed in filings made by the Company with the Securities and Exchange Commission.
ON BEHALF OF THE BOARD OF DIRECTORS OF:
THERMO TECH(TM) TECHNOLOGIES INC.
"Ismail Radi"
Per:
Ismail Radi
Chairman
(TM) The terms Thermo Tech(TM) and Thermo Master(TM) are registered
trademarks of Thermo Tech(TM) Technologies Inc. The term Thermo
Master(TM) is licensed for use by Hamilton Bio Conversion Inc., and
Richmond Bio Conversion Inc.
SOURCE Thermo Tech(TM) Technologies Inc.
/CONTACT: please contact: Thermo Tech(TM) Technologies Inc. (TTRIF),
603 7956-6000; Visit our Web Site at: www.ttrif.com/
(TTRIF) |
