Angie:
this is the press release from SEDAR dated March 18th. The one dated March 16th is the press release of March 6th in response to Trooper's release.
c4295
r f BC-thermo-teck-acquistn 03-18 1387
News release via Canada NewsWire, Vancouver 604-669-7764 -ME-
Attention Business Editors:
^THERMO TECH(TM) TECHNOLOGIES INC. ANNOUNCES COMPANY VERTICALLY
INTEGRATES ONTARIO BUSINESS THROUGH TWO ACQUISITIONS@
VANCOUVER, March 18 /CNW/ - Thermo Tech(TM) Technologies Inc.
Listed NASDAQ Trading Symbol: TTRI.F
THERMO TECH(TM) TECHNOLOGIES INC. (the Company) is pleased to announce
that Mr. Harvey Ambrose, Owner of Ontario Disposal and Mr. Ren‚ Branconnier,
President of the Company, completed an agreement today, for the acquisition by
the Company of a 50% interest in two private Ontario transfer stations and
waste management facilities owned by Northwood Recycling & Energy Inc. and
Power Grow Systems Inc. Ontario Disposal will retain a 50% interest. This
purchase by the Company is a vertically integrated expansion of its core
business of organic waste conversion. Each of Northwood and Power Grow will
purchase and operate a Thermo Master(TM) Plant.
The Northwood transfer station and waste management facility is situated
on a 17 acre site strategically located in Durham Region, just 30 miles east
of Toronto. The Certificate of Approvals for the site allows for 800 tonnes
per day throughput of municipal solid waste and bio-solids, originating from
anywhere in Ontario. The Northwood transfer station utilizes a revolutionary
bulk loading system which minimizes operating costs while maximizing
efficiency. The joint venture will provide a full service waste management
program for its customers.
With tipping fees in the Region of Durham at $75/tonne, escalating to
$93/tonne by the year 2000, the Company has acquired an excellent opportunity
to share in front end recycling and transfer station processing revenues.
Daily throughput of 800 tonnes at $75/tonne produces revenue of $60,000 at the
transfer station and when fees increase to $93/tonne the daily figure
increases to $74,400. Closure of the Brock Road landfill in Durham leaves
little or no competition in Northwood's markets. Northwood is in an ideal
position to capitalize on the opportunities that will result from the
impending closure of Toronto's Keele Valley Landfill in the next 3-4 years.
The Company's joint venture partner is among the largest operators of organic
soil conditioning in North America. It provides the joint venture with
greater access to waste materials, a full service transportation division and
local operating experience.
Northwood has extensive permitted area in place to accommodate a complete
waste management facility. Oshawa Bio Conversion Inc. is to be located on the
Northwood site as a part of the arrangement. This state-of-the-art Thermo
Master(TM) Plant will commence operations at 400 tonnes per day but is to be
built with capability to expand to 600 tonnes per day capacity. The patented
aerobic thermophilic Thermo Master(TM) Process converts organic wastes rapidly
and effectively to valuable end products and will expand business
opportunities and revenue potential for Northwood. Future developments
proposed for the site include wet/dry municipal waste handling systems and
Industrial, Commercial and Institutional bulk recycling.
Mr. Ambrose commented, ''Even though we have handled organic wastes for
many years and currently have well over 200,000 acres licenced for land
application of bio-solids sludges, the Thermo Master(TM) Process brings us a
major business advantage. Our joint venture makes sense for both sides. We
have the waste. Thermo Tech(TM) has the solution for organic waste
management.''
Power Grow is situated on a 66 acre site in Niagara Falls, only 15
minutes from the Buffalo/Fort Erie border crossing, in the hub of the Niagara
Frontier. Power Grow is in an ideal position to service the waste management
needs of upper New York State. The Certificate of Approvals issued for the
site allows Power Grow to manage up to 100,000 tonnes of waste material on
site at any time. Power Grow is the only transfer station in Canada which is
licenced to receive bio-solids from throughout North America. Power Grow is
able to off-load, bulk, consolidate or direct wastes to other Thermo
Master(TM) locations. The unique ability of Power Grow to receive and manage
wastes from the US and Canada results in a major revenue opportunity when
incoming waste is segregated and dispersed to recycling, disposal and Thermo
Master(TM) bio-conversion facilities as dictated by best environmental and
market prices. For example, solid waste received from New York at $66/tonne
can be managed and transferred to local landfills for as little as $15/tonne,
creating a major revenue opportunity. Ontario Disposal provides a range of
transportation and handling vehicles to fully integrate all the waste handling
needs of the joint venture.
Part of the Power Grow package will be Niagara Bio Conversion Inc., a
second 400 tonne/day Thermo Master(TM) Plant. As with Oshawa Bio Conversion,
Niagara Bio will commence production at 400 tonne capacity but will be
constructed with expansion capability to 600 tonnes per day. The combined
revenue potential of Power Grow with its 100,000 ton permit to receive and
handle general wastes at fees of up to $66/tonne and the capability of Niagara
Bio Conversion to convert up to 600 tonnes per day of wet organic waste to
valuable end products, without environmental impact, represent a powerful
combination and business opportunity for the Company.
Completion of the acquisition announced today clears the way to finalize
arrangements for the start of construction of the Oshawa and Niagara Thermo
Master(TM) Plants. Oshawa Bio Conversion and Niagara Bio Conversion will
combine with the expanded capacity of Hamilton Bio Conversion to give the
Company a minimum input capacity of 1,500 tonnes per day, further expandable
to a minimum of 1,900 tonnes per day, within the Toronto/Niagara region. At
an average processing fee of even $40/tonne this should result in estimated
daily revenues from the Thermo Master(TM) Plants of over $90,000 when finished
product revenue is included. This excludes revenue from the Brampton Depack
Center.
Mr. Ren‚ Branconnier, President and CEO stated today, ''This joint
venture is a major and logical integration step for Thermo Tech(TM). The
establishment of the Company's next two Thermo Master(TM) Plants in Ontario is
an important event and is also an indication of how the Company can
beneficially participate in two related waste management segments yet remain
focussed on the rapid expansion of Thermo Master(TM) facilities. The end
result is a win-win situation for Ontario Disposal and for the Company and its
shareholders with more business, greater revenues, improved efficiencies and
future opportunities all in one package.''
Mr. Branconnier concluded, ''The desire of the joint venture partners to
create a fully integrated business is evidence of our commitment to offer
modern, effective waste management services to Ontario's Golden Horseshoe
region and our willingness to cooperate with our partners to maximize the
return from each joint project. It is also proof of the recognition by our
partner, with his 35 years of waste industry experience, of the unique ability
of the Thermo Master(TM) Process to manage organic wastes effectively,
profitably and without environmental impact.''
Thermo Tech(TM) Technologies Inc. is a leader in organic waste recycling
with offices in Vancouver and Toronto, Canada and Atlanta, Georgia. Thermo
Tech's(TM) patented thermophilic process is utilized in compact and
environmentally friendly Thermo Master(TM) plants to convert biodegradable
food waste into high protein animal feed and waste water treatment sludges
into fertilizer concentrate.
Certain statements contained herein are ''forward looking statements''
(as such term is defined in the Private Securities Litigation Reform Act of
1995). These statements are based upon the belief of the Company's management,
as well as assumptions made beyond information currently available to the
Company's management. Because such ''forward looking statements'' are subject
to risks and uncertainties, actual results may differ materially from those
expressed or implied. Such ''forward looking statements'' include but are not
limited to, competitive factors, general economic condition, customer
relations, relationships with vendors, government supervision and regulation,
product introductions and acceptance, technological changes in industry
practices, and other factors discussed in filings made by the Company with the
Securities and Exchange Commission.
ON BEHALF OF THE BOARD OF DIRECTORS OF
THERMO TECH(TM) TECHNOLOGIES INC.
Per:
Ren‚ J. Branconnier
President and Director
The terms Thermo Tech(TM) and Thermo Master(TM) are registered trademarks
of Thermo Tech(TM) Technologies Inc. The term Thermo Master(TM) is licenced
for use by Hamilton Bio Conversion Inc., Brampton Bio Conversion Inc.,
Richmond Bio Conversion Inc., Oshawa Bio Conversion Inc. and Niagara Bio
Conversion Inc.
%SEDAR: 00003482E
-0- 03/18/98
/For further information: Vancouver Corporate Office, (604) 514-8390 or
Toronto Corporate Office, (905) 450-8866 or Atlanta Corporate Office,
(404) 816-9003/
(TTRIF)
CO: Thermo Tech(TM) Technologies Inc.
ST: British Columbia
IN: ENV
SU: TNM
-30-
CNW 14:11e 18-MAR-98 |
