Allan -
I've been following the stock for a while; I bought between $3 and $4.
Below is the company's press release. Sounds like they won't get the
cash flow they were hoping for until late next year. I don't understand
why this would happen, because the first cell should be able to be
filled at a 400/ton/day rate, from what I understand. The fact that
they got the permit is excellent news, and may be enough
for them to get the debt financing they need to get going on the
projects on the back burner. This is a capital intensive business, so
not getting the permit to operate atfull capacity is something of a
disappointment.
BW0257 AUG 12,1996 8:21 PACIFIC 11:21 EASTERN
( BW)(BIOSAFE-INTERNATIONAL)(BSFE) BioSafe receives landmark permit
for Fairhaven landfill
Business Editors
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 12, 1996--BioSafe
International Inc. (NASDAQ: BSFE) announced today that it has
received a permit from the Commonwealth of Massachusetts authorizing
the company to accept tonnage in a portion of its solid waste
landfill in Fairhaven, Mass., that has undergone the company's
landfill remodeling process for recycling landfills.
In announcing the receipt of the permit, Philip Strauss,
BioSafe's chairman, president and chief executive officer, said,
"This permit represents a major milestone for BioSafe, as it is the
first permit that we have ever received for a remodeled landfill
cell, and it represents a major confirmation of the landfill
remodeling approach. By issuing the permit, Massachusetts has shown
its confidence in BioSafe and its landfill remodeling process."
Strauss further noted, "This permit paves the way for BioSafe to
increase the tonnage that we accept at the Fairhaven landfill."
Since July 1995, BioSafe has been receiving waste at the landfill at
the rate of 150 tons per day, and with the receipt of this new
permit, BioSafe expects to begin accepting 394 tons of waste per day
in late 1997.
Strauss also said, "We believe that the receipt of the
permit sets the stage for the commencement of our previously
announced landfill remodeling contracts at the municipal landfills
in South Hadley and Buckland, Mass. We expect that
the successful landfill remodeling project at Fairhaven will
encourage municipalities in other states to use the BioSafe approach
in dealing with their unlined landfills."
BioSafe has been operation the 23-acre Fairhaven municipal landfill
since July 1995. The town of Fairhaven was facing a multi-million
dollar cost from the mandated closure of its unlined landfill,
and it selected BioSafe to provide the town with an alternate
solution to the landfill's closure. Since then, while operating the
Fairhaven landfill, BioSafe has used its landfill remodeling
process to excavate and recycle the first of several cells in the
landfill and to install the required liner and leachate collection
system in the remodeled cell.
BioSafe's agreement with Fairhaven relieves the town of its
pending closure costs, provides current income to the town through a
host-free arrangement, and extends the landfill's life for about 10
years. During the life of its landfill remodeling contract with
Fairhaven, BioSafe expects to generate more than $55 million in
revenues.
BioSafe International Inc. is an innovative solid waste
management company and the world's leader in "landfill remodeling,"
a patented process that BioSafe had developed for recycling existing
landfills.
--30--lm/bos
CONTACT: BioSafe International Inc.
Philip Strauss, 617/497-4500
or
Liviakis Financial Communications Inc.
Robert Prag, 916/448-6084
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: ENVIRONMENT ENMED
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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