News Story from Business Wire
Alanco Shareholders Approve Reverse Stock Split; Move Protects Market Listing
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 13, 1998--At a special shareholders meeting in Scottsdale today, Alanco Environmental Resources Corp. (NASDAQ:ALAN) shareholders voted to approve a one for seven (1:7) reverse split of the company's common stock.
The adjustment takes effect immediately.
Alanco president and chief executive officer, Edward J. Maley, said, "Today's vote enables us to comply with the new NASDAQ listing standards. The overwhelming vote in favor of the directors' proposal is not only an important vote of confidence in the board, but indicates how highly our shareholders value our market listing."
As a result of the approval, each seven issued shares of the company's common stock will automatically be converted into one new share of Alanco common stock effective May 14, 1998. Each fractional share resulting from the move will be rounded up to the next whole share. For the next twenty trading days the letter "D" will be appended to Alanco's symbol (ALAN) to indicate this new status.
In other news, Alanco announced that the company's wholly-owned Chinese subsidiary, Alanco Beijing, has signed an agreement with China Energy Conservation Investment Corp. (CECIC) regarding future environmental projects in China. CECIC owns or has interest in more than 450 power plants in China. The agreement calls for CECIC to arrange for presentations of Alanco's Charged Dry Sorbent Injection (CDSI) industrial air pollution control systems in June to 20 to 30 Chinese power plants that are currently in need of desulfurization systems. The expense of these technology presentations will be shared by both parties.
CECIC is a wholly-owned Chinese government company, linked to the State Planning Commission, and is charged with implementing the overall strategies for sustainable development stipulated in China's Agenda 21. Alanco's CDSI system is one of five environmental technologies listed in Agenda 21, the Chinese Premier's environmental clean up plan for the next century.
CECIC is also the parent company of China National Environmental Corporation (CNEPC), one of China's largest environmental enforcement companies. CNEPC also represents Alanco's environmental technology in China. The agreement envisions subsequent joint venture projects between Alanco Beijing and CNEPC.
Alanco's primary businesses are industrial air pollution control technology and food services marketing. In November, Alanco announced an agreement to install three of its Charged Dry Sorbent Injection (CDSI) industrial air pollution control systems in the SINOPEC Lanzhou Chemical Industry Corp. plant in Gansu Province, China. SINOPEC (China Petrochemical Corp.) is China's largest refining and petroleum company.
Also discussed at the shareholders' meeting was the business of the Fry Guy division. The food services contract executed with Wal-Mart two years ago has expired. Fry Guy's food services program in Wal-Mart remains in place and negotiations with Wal-Mart are underway.
Alanco's Fry Guy Inc. food services program operates in more than 1,300 Wal-Mart discount stores nationwide. The Fry Guy Integrated Food Services Marketing Program supplies a patented, self-ventilating fryer in a convenient counter top unit that requires little shelf space and operates on 110-volt power.
Under the private label SGT.FRY, Fry Guy provides end users the finest quality finger food products in conjunction with prominent food suppliers as its strategic partners. Fry Guy participates in the food revenue on a per order basis.
Last month Alanco reported a second consecutive quarter of profits, and overall profitability for the first nine months of the company's fiscal year.
CONTACT:
Alanco Environmental Resources Corp.
Alanco Shareholder Relations, 602/607-1010
KEYWORD: ARIZONA
BW0361 MAY 13,1998
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