(CONTINUED FROM PREVIOUS POST #4226)
Laurence: What Dr. Cumming was testifying to, was the fact that we have a new patent issued for new technology and new processes. The attorney for Trooper, whose job it was to cross examine Dr. Cumming was trying to establish one of two things- both by way of attacking Dr. Cumming's credibility. Either he was trying to show that the new technology was not new because it was the same thing that had been licensed to Trooper, or, he was trying to show that our new process does not use thermophyllic fermentation. And neither of those statements is true. This will be in our statement that goes out today. What Dr. Cumming testified to was simply that subject matter of the new patent, which is an amalgam of a number of processes- one of which is a thermophyllic aerobic bacterial fermentation process, is not an improvement or a continuation of the patented technology that was licensed to Trooper, it's that simple. What Dr. Cumming did not testify to is that our process today, the Thermo Master Mark II plant, is that's not a thermophyllic process in that plant. It is still a thermophyllic process but it is a patented technology that involves a much broader know-how and learning regarding any number, or not any number, but a defined number of processes that makes the thermophyllic fermentation process commercially viable and indeed profitable.
Our next question comes from Eric Donner.
I am trying to figure out where we are going with investor relations up here because they're still kind of forerunning the news items here and giving specific time frames for news releases that don't come. So, could you elaborate a little bit on what Continental is doing for you?
Sure, just so everyone will know, Eric's in Toronto, he is talking about our Toronto office. I will talk to them about being more reserved and conservative and more factual. I have toned down in the IR group in our Langely office and we have gotten comments on exactly that, that they have been more factual. I do have a very aggressive individual there, but I will talk to him, Eric, about it.
Our next question comes from David Pickering.
I had a couple of more questions. Is the EPC contract with West Mechanical done?
Rene: That is part of all the term sheet. The answer is, it is 99.9% done.
David Pickering: Is this tied in to waiting for these signatures for these parties that you want to include in the press release?
Rene: That is correct, Dave.
David Pickering: Can you clarify what you said - you actually purchased or made offers for two sites in Massachusetts? And was that Thermo Tech or was that US Thermo Tech?
Rene: Thermo Tech and US Thermo Tech are the same thing, it's a wholly-owned subsidiary, right? It's just like Thermo Tech Waste Systems, they own Brampton and Hamilton, and they are a wholly-owned subsidiary of Thermo Tech. It is US Thermo Tech that has, but at the end of the day, it is going to be the bioconversion plants that's going to own it, which is going to be owned by US Thermo Tech. To answer your other questions, we have made offers on them. And tomorrow will be one offer accepted and the other we will know on Monday. Laurence and I will be traveling there next week, hopefully, next week, to finalize everything. Laurence needs a little more rest than I do.
Our next question comes from Don Marcan.
When I first got in this stock a few years ago there was about 8 million shares out, and on January 31st, it was 50 to 53 million, now you are at 70 to 75 million - you are adding about 5 million a month. Where do you think you're going to stop diluting this thing at? 100 million.here.where?
I would like to have stopped it at 8. But I think if you go back, I think 8 million was about 3 years ago. The real thing is that how can we grow the company when we don't have the working capital from the cash flow yet, to support the growth that we need to get this Mark II launched off and the marketing. The thing is that if we would have been able to - the market potential for the Thermo Master plants are so large, that it takes a lot of effort and work, but I believe that we will have close to 50 million dollars in assets too.
Don Marcan: What is your daily output or throughput at Hamilton right now.
I believe that was released on our last quarterly financial statement.
Don Marcan: Are you getting anything from the Hamilton sewage district, whatever they call that, are you putting anything through right now?
In order for us to do municipal sludge at Hamilton, we have got to finish the second phase of the plant, and also have that second phase also permanent for sludge.
Don Marcan: But that was supposed to be an opportunity to get some sludge waste out of Hamilton, but when do you expect that will begin?
Well, basically probably, this is only an estimate, at this point, we are looking at 6 months. But the key is, what we have done, is we're building the Oshawa and Niagara plants, so we have two other locations that are happening.
Don Marcan: You bought that Canadian Waste Exchange a year or two ago, what have they brought to the table?
Basically, that helped us being able to finalize Ontario Thermo Tech - the whole financing, get us exposed, get us raw materials, supplies. Four of the individuals are still with us, so it did help the credibility in the market place for raw materials in the Ontario market, and we have been able to attract Ontario Waste Disposal.
Mark Abernathy: Rene, let's take two more questions. I think we will have an opportunity to convene in this forum in the very near future again. But, let's take two more and call it a day.
Our next question comes from John Quinn.
How many plants do you feel will be fully operational by year-end?
April 30th?
John Quinn: No, year-end 1998.
Our year ended April 30th, that's how we design everything.OK? By April 30th of 1999, we will have Hamilton, Oshawa, Niagara Falls, we will have a minimum of one, or maybe two, in Massachusetts. (He forgot about Richmond.)
John Quinn: Any updates with something going on in Chino Valley - have you heard anything back from that?
Yes, all during the week, we were in discussions with them. Oh yes, just to answer back the last one, possibly, by then, we will have the Corinth facility up and running by then too.
John Quinn: So you feel comfortable that you will have 6 operational plants by year-end?
In the Chino Valley deal, that is a very hot political issue. If any of you have read the L.A. Times, they found an ex-project they tried to launch off, they were getting some aldermen paid. The problem still never went away and we are confident that we will get that project. It is just a matter of when. It's a large project.
There are no more questions at this time.
Mark Abernathy: We would like to thank everybody for participating. Rene, Laurence.we appreciate your time.every one in the audience. Again, if you have any questions, feel free to call me, Mark Abernathy, Continental Capital, at 407-682-2001, or your in-house investor relations representative with Thermo Tech.
The call ended at 4:00 PM CDT.
Regards,
David Pickering |
