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Green Oasis Environmental, Inc. Receives Deposit on Prior Order
PR Newswire - March 06, 1998 11:10
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CHARLESTON, S.C., March 6 /PRNewswire/ -- Green Oasis Environmental, Inc.
(GRNO) announced today that it had received final payment toward a $100,000
deposit for a Model 1000 EnviroEconomics waste oil processing plant from AMBIX
Technologies, Inc., successor-in-interest to RecOil, Inc. The Model 1000 has
not been previously manufactured or tested, but its design is based on the
previously manufactured and tested Model 200/400. The deposit relates to one
of three units originally ordered by RecOil, Inc. in December, 1996, as
reported by the Company in its January 6, 1997 press release.
The $100,000 deposit for the Model 1000 unit was satisfied by
reclassifying a series of stockholder loans made by Raymond C. O'Brien to the
Company during November and December, 1997, totalling $47,250, and payment of
$50,000 by AMBIX and $2,750 by Mr. O'Brien on February 24, 1998. The deposit
is non-refundable, and will be applied toward the purchase and installation
price of $2.6 million for the Model 1000 unit. Green Oasis will receive the
$1.6 million of the purchase price in a series of progress payments scheduled
to be paid over a five month construction and installation period. Green
Oasis has no information regarding the source of AMBIX's funds for the $1.6
million of progress payments, and is not obligated to commence construction of
the unit or place orders for components or other materials until the first
progress payment is received. The $1,000,000 balance of the purchase price
for the unit will be paid by delivery of AMBIX's subordinated term note upon
completion of the installation of the unit. The note will bear interest at
the rate of 8%, payable monthly over ten years, and the first installment
under the note is due 90 days following AMBIX's first sale of No. 2 diesel
fuel. Green Oasis will also receive a royalty for sales of No. 2 diesel fuel
by AMBIX, based on the rack price of No. 2 diesel in the area market. AMBIX
has also been granted an exclusive development agreement for Texas and
Louisiana, subject to its satisfying the payment terms of the license fee.
Installation of the unit at AMBIX's site in Bay City, Texas, is scheduled
to be completed within five months following receipt of the first progress
payment. AMBIX is responsible for securing all construction, operating and
environmental permits for the unit.
AMBIX is a successor-in-interest to RecOil, Inc., which is owned by
Raymond C. O'Brien and members of his family. Mr. O'Brien and his family
beneficially own more than 5% of Green Oasis common stock, and in the past,
Mr. O'Brien has performed a number of financial advisory services for Green
Oasis.
Green Oasis' patent-pending process is designed to produce marketable
fuels from waste oils in a closed cycle, one step process. The Company
manufactures equipment for its own use as well as markets to others.
SOURCE Green Oasis Environmental, Inc.
/CONTACT: William D. Carraway of Green Oasis, 803-722-5771, or e-mail,
grno@awod.com/
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