WAST news, this one just gets better by the day. :-)
19.2% of Stock, 30,000,000 Shares, and 100,000,000
Share Warrants to Return To Treasury of
WasteMasters
EL RENO, Okla., Dec. 27 /PRNewswire/ -- WasteMasters, Inc. (OTC Bulletin Board: WAST - news) announced today that
it has reached agreement with Continental Investment Corporation (OTC Bulletin Board: CICG - news) to rescind a prior
agreement in which Continental acquired 5,000,000 shares of the Company's Preferred Stock and 4,500,000 shares of its
Common Stock. The 5,000,000 shares of Preferred Stock were convertible into 25,500,000 shares of the Company's
Common Stock or 19.2% of issued shares at 3Q99. Continental is currently in bankruptcy and the transaction must be
approved by the Bankruptcy Court. However, Continental has made all appropriate filings and awaits a hearing on the matter in
early January.
According to the terms of the recission, WasteMasters, Inc. will return shares it holds in Continental and one of its subsidiaries,
Continental Technologies Corporation as well as pay $590,000 to Continental. WasteMasters, Inc. will receive an operating
landfill in Missouri that was included in the original transaction. In addition, a warrant that would have given Continental
100,000,000 shares of WasteMasters Common Stock in exchange for 1,000,000 of Continental Common Stock will be
cancelled. WasteMasters previously notified Continental that it would not honor the warrant. This move completely eliminates
the possibility of future litigation.
Douglas Holsted, President of the Company, stated: ''It has taken a long time to completely separate Continental and
WasteMasters. However, the outcome is tremendous. With the Court's approval, we will reduce our outstanding stock by
30,000,000 shares, bring in an operating asset, and eliminate potential litigation. Continental separates from us, gets their stock
back and enough cash to allow them to concentrate on their difficulties. We don't anticipate any problems with the approval
from the bankruptcy judge and the effect of the agreement will be posted in the first quarter financials.''
David N. Fuselier, of the Ridgefield Group, the Company's turn-around consultant, stated, ''When fully approved this
transaction brings back into treasury over $7,500,000 of WAST shares, effectively a 20% gain for its shareholders, neutralizes
future litigation which would have taken years and hundreds of thousands in legal expense to settle and, ultimately, adds
revenues and strengthens the balance sheet.''
''The original transaction was structured by old management at both WasteMasters and Continental and had many flaws from
the start. For over a year now, new management at both companies has sought an equitable recission of the original
transaction,'' said current Chairman and CEO Leon Blaser of WasteMasters. ''This is a vital settlement for WasteMasters and
Continental.''
WasteMasters operates landfills and transfer stations and utilizes the proprietary technology of its proposed wholly owned
subsidiary Startec, Inc. (OTC Bulletin Board: STIN - news) to generate tax credits in the waste industry.
For further information contact Douglas Holsted, President of WasteMasters, Inc. at (405) 262-0800.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news
release which are not historical facts may be ''forward-looking statements'' that involve risks and uncertainties which could
cause actual results to differ materially from those currently anticipated. For example, statements that describe WasteMasters'
hopes, plans, objectives, goals, intentions, or expectations are forward- looking statements. The forward-looking statements
made herein are only made as of the date of this news release. Numerous factors, many of which are beyond WasteMasters'
control, will affect actual results. WasteMasters undertakes no obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances. This news release should be read in conjunction with WasteMasters' annual report
on Form 10-KSB for the fiscal year ended December 31, 1998 and other filings with the U.S. Securities and Exchange
Commission by WasteMasters.
SOURCE: WasteMasters, Inc. |
