Eagle to Acquire HSP of Canada, Specialists in Biomass Combustion
PR Newswire - May 17, 1999 07:17
RENO, Nev., May 17 /PRNewswire/ -- Brian Wilmot, chief executive officer of Eagle Environmental Technologies Ltd. ("Eagle") (OTC Bulletin Board: EGVRD), announced today that, following extensive negotiations, the company has executed a letter of intent in anticipation of a formal agreement with Heat Steam and Power ("HSP"; Toronto, Ontario, Canada), a privately held company. Pursuant to the agreement, Eagle will acquire all of the outstanding shares of stock of Heat Steam and Power in exchange for approximately one million shares of Eagle treasury common shares, future options and other considerations.
HSP specializes in biomass combustion using its patented "Turbulator" technology. This technology, combined with the plasma system and Eagle's new milling system from EDG Engineering ("Cyclo-Mill") is expandable for reducing landfill waste and for generating power for on-site uses or resale. The HSP system can use any biomass, refuse, sludge or oil as a fuel. The diversity of the system lends itself to a variety of applications, including use at Eagle's proposed Swan Lake facility (Texas). The acquisition of HSP, which is subject to final approval by the boards of directors of both companies, is expected to be finalized on or before July 1, 1999, following the completion of an independent audit of HSP.
HSP has been marketing its patented system since 1995. According to Wilmot, with the treatment of certain types of refuse, the classic problem was the containment or destruction of the off gases. Eagle's plasma system eliminates that concern and makes the HSP system suitable for numerous additional locations and applications. The HSP system generates adequate waste heat to allow co-generation at the user's facility, thus providing its own power source for all system equipment, including the plasma process system, to operate inexpensively. Engineering plans combining the equipment modules will begin in June, with expected completion in August 1999.
The management of Eagle has indicated its intention to add two HSP executives, Mary Webster and Hank Gillette, both directors of HSP, to the board of directors of Eagle Environmental Technologies Ltd. Both will remain as employees of the newly acquired entity, to be known as Eagle HSP North America, which will be a wholly owned subsidiary of Eagle Environmental Technologies Ltd. "Mary and Hank have extensive backgrounds in waste management, including deep well injection systems. We look forward to working with them in creating new markets to ensure the long-term success of the Eagle family of companies," said Wilmot.
Eagle Environmental Technologies Ltd. is an acquisition-oriented business enterprise focused on environmental remediation, reclamation and integrated systems for waste treatment and air and water quality.
NOTE: Statements contained in this release that are not strictly historical are "forward-looking' within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that such forward-looking statements invoke risk and uncertainties that may cause the company's actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, completion of the aforementioned acquisition, the company's ability to continue to develop its market, demand for the company's services, general economic conditions, and other factors that may be more fully described in the company's literature and any periodic filings with the Securities and Exchange Commission.
SOURCE Eagle Environmental Technologies Ltd.
/CONTACT: Brian Wilmot, Chief Executive Officer, or Jerry Wilmot,
President, both of Eagle Environmental Technologies Ltd., 775-348-7448; or
Madeleine Franco of Jordan Richard Assoc., 801-268-8610, ir@jordanrichard.com,
for Eagle Environmental Technologies Ltd./
/Web site: jordanrichard.com
/Web site: egvr.com
(EGVRD)
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