Just received this today, out of blue....
FINANCIAL MARKETPLACE REPORTS LTD
R 0. Box 13343
Denver, CO 80202
303-629-2923
1-800-672-1313
January 1998
Dear Subscriber
Articles in Business Week (5/19/97), GAS TO OIL: A Cyusher For The Millennium?, Fortune (4/28/97), EXXON.-PuMping UR o@ and The Wall Street Journal (12-8-97) En reneurs'Forntula In@ues the Oil Indusft, have stated that "Gas-To Liquids" time has come. Exxon and Shell have developed their own GTL technologies. These majors say this could bring billions to their companies in the future. We believe that GTL technology will be a large part of every major oil & gas producer's technology in the 21st Century.
Please find enclosed a company profile on Rentech, Inc., a small Denver, Colorado firm that is in the Gas-To-Liquids arena. Rentech is one of only four companies in the world that has operated a commercial-scale GTL facility. The three other companies are Shell, Exxon and a South African company, SASOL. On April 1, 1997, Rentech, Inc., announced that it signed a letter of intent to enter into an agreement with Texaco Group, Inc. to negotiate exclusively with Texaco to establish a business relationship to accelerate the development and licensing of Rentech's Process Technology and to commercially exploit the technology on a worldwide basis. These negotiations are progressing and Rentech is hopeful that they will be concluded in the near future.
Rentech's Process Technology is a patented and proprietary process which can be used to convert synthesis gases into valuable liquid hydrocarbon products such as naphtha, clean-burning diesel fuel, and high grade industrial waxes.
We encourage you to read the enclosed information and return the card or call if you would like additional information. You can also rind Rentech on the WWW(a),gastoliquids.com
Sincerely,
FINANCIAL MARKETPLACE REPORTS
PORTIONS OF THIS REPORT MAY CONSTITUTE FORVARD-LOOKING STATEMENTS AS DEFINED BY FEDERAL LAW ALTHOUGH THE COMPANY BELIEVES SUCH STATEMENTS ARE BASED UPON REASONABLE ASSUMPTIONS, THERE ARE NO ASSURANCES THAT ACTUAL OUTCOMES WLL NOT BE MATERIALLY DIFFERENT FACTORS THAT COULD LEAD TO MATERIAL CHANGES IN PERFORMANCE ARE CONTAINED IN THE COMPANY'S TRANSITION REPORT ON FORM 1OK-KSB WHICH IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
THIS IS NOT A SOLICITATION TO BUY OR SELL SECURITIES, AND SHALL NOT BE DEEMED TO OFFER ANY SECURITIES. SUCH AN OFFER MAY ONLY BE MADE BY PROSPECTUS AND THIS MAILING DOES NOT PURPORT TO BE A COMPLETE ANALYSIS OF THE COMPANY'S FINANCIAL POSITION. THE PUBLICATION OF THIS INFORMATION IS NOT AN ENDORSEMENT OF THE COMPANY ALL CLAIMS SHOULD BE VERIFIED BY THE READER. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
RENTECH CORPORATE PROFILE
January 1998
Rr=NTc-c", INC. C=T DATA
1331 17th Street, Suite 720 Symbol: RNTK (NASDAQ)
Denver, CO 80202 Shares Outstanding: Approx. 25,000,000
Phone (303) 298-8008 Estimated Float: Approx. 15,000,000
Fax (303) 298-8010 Low: $.06 19%
I-MAH RNTK 1331(2901.com Hlgh: tg 3/4102
Dennis L. Yakobson
President and Chief Exmudve Officer
Rentec[L Inc. is a 16-year@ld Colorado corporation that owns and licenses a proprietary and patented process that converts gam into valuable liquid hydrocarbons including diesel fuel naphtho's and waxes.
Rentech is one of only four companies in the world that has operated a commercial-scale gas-to-fiquids facility. The three othw companies am ShelL Exxon and a South Africitn company, SASOL.
Rentech's patented process converts gm utilizing its iron-based catalyst technology to achieve its gm-to-liquid conversion. 'i@he p@ mary feedstock source for conversion plants using the Rentech technology is expected to be natural gas wells that are not producing due $D, their mmote locatiom Other feedstocks for use In the Rentech process are gas welb producing natural gm not suitable for commercial sob because it contains diluents such as carbon dioxide or nitrogen; oil wells that flare associated gas; industrial off-gas; and, the direct conv@ sion of synthesis of coal or low-value oil mflnery products. These feedstock supplies am in abundant supply world wide.
The Company's imn-bmed catalyst is one of the most versatile catalysts available in that it can be used on the widest variety of gm feedstocks ranging fmm coal and biomass to natural gas. Cobalt-bmed catalysts used by Shell and Exxon am targeted for natural gas giv. ing Rentech the competitive edge for overall use on a world wide basis. The following illmtration is an example of how valuable Rentech's gas-to-liquids technology could be to the refinery Industry alone.
If a typical 100,000 barrels per day refinery had 15,000 barrels per day of heavy tx)ttoms material it) dispose of, a portion of the synthesis gm produced from that material could meet the mfinery's estimated 5OMw electrical requirements and the remainder of the syw thesis gas could be utilized by the Rentech process technology to produce approximately 5500 barrels per day of valuable liquid hyd@@ bons. Assuming a $20 per barrel value for the hydrocarbon products, the value of the mrinery's output could increase by appmxiinately $0 million per year not including the savings in electrical costs achieved by internal generation in lieu of outside purchase.
MANAGEMENT DEVELOPMENTS
In May 1996 Rentech appointed Mr. James P. Samuels as Vice President-Finance and Chief Financial Officer for the company. Since Mr. Samuels' arrival, the pace of development at Rentech has lncmmed dramatically. Monagement's stated goals of accelerating corn. pany growth are being met. Rentmh is now on track to achieve significant cash flow improvement from its, acquisitiom as well as expansion of its gas-to-liquids technology on a worldwide bmis.
FINANCIAL DEVELOPMENTS
Thmugh a series of private placements and convertible debentures Rentech has generated In excess of two million dollars since
August 1996. These funds have lwn stratelOcoHy used to place Rentech in its best rmancial operating position since going public in 1991 an well as providing the cmh to make two key Hcquisition&
ACOUISITION DEVELOPMENTS
C. -Rent"h announced on March 17, 1997 that it completed Its acquisition of the assets of Okon, Inc., a Lakewoo(L
Colorado-bmed manufacturer and distributor of envimitmentally clean, water mpelient sealers and stains for wood, concrete and mmonry.
The 20-year-old company had approximately 52 million in revenue for the flwnl year ended December 31, 1996
By entering this business, Rentmh will have immediate revenue and cash flow pmviding a mom secure financial base fare which it expects to expand and strengthen its core business.
ITN/ES -Rentech hm signed a letter of intent and provided a cash down payment to form a lifnited liability company (LLC) with ITN Energy Systems, Inc. (ITN/ES), a privately-held Colorado corporation. The LLC is being formed to commercialize technologies and products developed by ITN/ES. The technologies and products Include the production of thin-film electronic material substrates by depmi.
tion on which computer chips can he mounted; advanced processes for ceramic deposition on materials to itnpmve their capacity to with. stand heat and wear; and utilization of shape memory alloys that are highly advanced metals which, by the proper application of heat, cold or electrical irnpuln, can perform a mechanical function with precision for almost unlimited periods of time. Industry sources estimate the world market for electronic substrates to be approximately $500 million and I!xpect it to grow to S2 billion by the year 2000.
ITN/ES Is owned and operated by Dr. Mohan S. Mism who for the last 15 years directed materish research and development for advanced programs for Martin Marietta. ITN/ES was formed to transition certain technologies originating in the defense and aerospace industries to commercial pmducts. The technologies and pmducts are proprietary to ITN/ES and will be contributed to the LLC.
One of the first products Rentecb will be involved in is the Thermal Heat Engine. The Thermal Heat Engine would be considered a major breakthmugh in technology and ifnportant for developing nations that an in need of off-grid power in mmote amm. The Thermal Heat Engine developed by ITN/ES converts the low-value energy contained in waste heated water to useful mechanical energy. Among the us" for the engine am mmote water pumping for home use and agricultural irrigation. Of particular significance is the ability of the engine to convert thermal waste energy created in many manufacturing processes into usable power for internal use on a cost effective basis.
Rentech believes the market potential for such engines to be substantial. The proposed manufacturer and distributor in India for theThertna]HentEngine!sPolyplexCorpomtionLitnitedofNewDelhL IthmadvisedITNIESthatsalesbyPolyplexoverfiveyearsinindis alone could approach one million units.
GAS-TO-LIOUIDS
On April 1, 1997, Rentech announced that it had entered into an agreement with Texaco Gmup Inc., to negotiate exclusively with Texaco to establish a business relationship to accelerate the developfnent and licensing of RENTECH'S Pmcess Technology and to commerciaby exploit the technology on a world wide basis.
Rentech continua working on a 350 barreb per day gm-to-liquids plant in Arunachal Pradesh, India with its Indian licensm, Donyi
Polo Petmchernicals Ltd. Donyl Polo is indicating to Rentech that the pinnt should be completed and running within the next 12 months.
Rentech is also pursuing inquiries for its process in Australia and Ecuador.
WW @NTIECH
1. Redevelopment Plan has been set in motion and is achieving stated goals.
2. Acquisition of Okon gives Rentech a strong cash flow In a growth industry to accelerate it's technology investments.
3. Gas-t@liquids technology is getting worldwide mcognitiom
4. Rentech is the only pum stock play in gas-to-liquids market.
5. ITN/ES often Rentech entry into high technology areas with unlimited revenue potential on proprietary and patented products.
6. Though in its beat financial position in years and now with a pmven cash fl@, the stock price is near one of its @om lo"k
7. Rentech's gas-to-liquids technology is one of only two similar technologies available for licensing.
S. Rentech's fixed costs, will not have to he increased to achieve Its gmwth/earninip targets.
9. Rentech's technology partners am nil of the Fortune 500 Club.
10. Rentech has full pntent protection.
PORTIONS OF THIS REPORT MAY CONSTITUTE FORWARD-LOOKING STATEMENTS AS DEFINED BY FEDERAL LAW. ALTHOUGH THE COMPANY BELIEVES SUCH STATEMENTS ARE BASED UPON REASONABLE ASSUMPTIONS, THERE ARE NO ASSURANCES THAT ACTUAL OUTCOMES WLL NOT BE MATERIALLY DIFFERENT. FACTORS THAT COULD LEAD TO MATERIAL CHANGES IN PERFORMANCE ARE CONTAINED IN THE COMPANY'S TRANSITION REPORT ON FORM 1OK-KSB WHICH IS FILED WTH THE SECURITIES AND EXCHANGE COMMISSION.
THIS IS NOT A SOLICITATION TO BUY OR SELL SECURITIES, AND SHALL NOT BE DEEMED TO OFFER ANY SECURITIES. SUCH AN OFFER MAY ONLY BE MADE BY PROSPECTUS AND THIS MAILING DOES NOT PURPORT TO BE A COMPLETE ANALYSIS OF THE COMPANY'S FINANCIAL POSITION. THE PUBLICATION OF THIS INFORMATION IS NOT AN ENDORSEMENT OF THE COMPANY ALL CLAIMS SHOULD BE VERIFIED BY THE READER. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
FOR MORE INFORMATION PLEASE CALL 1-800-672-1313 |
