Tuesday June 16, 8:45 am Eastern Time
Company Press Release
SOURCE: Thermo Tech Technologies Inc.
Thermo Tech (TM) Technologies Inc. Announces Profitable Performance
Continues at Hamilton, Company Business Expansion Picks Up Speed
VANCOUVER, British Columbia, June 16 /PRNewswire/ -- Thermo Tech(TM) Technologies Inc. (Nasdaq: TTRIF - news;
The Company) would like to bring to the attention of shareholders, the major progress made by the Company over the last
months.
Hamilton Bio Conversion Financial Performance: The Company today announced that the 12 month performance of its
Hamilton Bio Conversion Inc. has exceeded financial projections and has shown a $1,867,432 improvement in Net Income
from that of the previous year. Hamilton Bio Conversion achieved Net Income of $904,419 for the year ending April 30, 1998,
exceeding the projected financial model Net Income by $235,419. The financial results are based on unaudited financial
statements prepared by Management and are subject to the Company's audited financial statements.
Unaudited Statement of Income - Hamilton Bio Conversion Inc.
Model Actual Actual
Projection Performance Performance
for 12 for 12 for 12
Months at Months to Months to
200 tons April 1998 April 1997
Total Revenue $2,760,000 $3,650,823 $1,316,884
Total Direct Cost 1,089,000 948,043 850,005
GROSS PROFIT 1,671,000 2,702,780 466,879
Total Indirect Cost 342,000 401,167 206,841
PROFIT (Before other expenses) 1,329,000 1,688,000 260,038
Total Other Expense 660,000 1,397,195 1,223,051
Including Amortization
NET INCOME (Before taxes) 669,000 904,419 (963,013)
The Company is pleased to provide the following update on other important corporate developments:
Hamilton Bio Conversion Inc.: The Company is pleased to announce that its new 400 ton per day Thermo Master(TM) Mark
II Plant is to be opened in July. The addition of this brand new third generation Thermo Master(TM) Mark II Plant has doubled
Hamilton's capacity. The building and some of the equipment for the second 400 ton per day plant has been completed and will
expand as demand is increased, to the full 800 ton per day capacity and associated cash flow.
Northwood Recycling and Energy Inc. and Power Grow Systems Inc. are owned by Ontario Thermo Tech(TM), the
Company's 50/50 joint venture partnership with Ontario Disposal.
Northwood Recycling and Energy Inc.: Additional profits over and above original projected profits from the 800 ton per day
capacity and $70/ton tipping fee, are being realized through a new agreement. A five year agreement has been signed with
Durham Shred and Recycle for waste paper reclamation at the newly opened Northwood transfer station. In return for space
and scale and site services, Durham Shred and Recycle will pay a monthly lease of $2,000 and will provide all necessary
recycling equipment and staff. An additional profit of $1,000 per day will be realized by Northwood under the agreement. This
profit comes from diversion of recoverable materials from disposal. Beginning at approximately $1,000 per day, the total
amount of this extra profit will increase as Northwood increases its volume to its 800 ton per day permitted capacity.
Power Grow Systems Inc.: Final arrangements are being made with an American waste broker to receive waste from New
York State. The contract provides for a minimum of 100 tons per day to be delivered to the Ontario Thermo Tech(TM),
Power Grow transfer station. Power Grow is ideally located in Niagara Falls, Ontario, close to major New York markets.
Power Grow is steadily expanding its business and is permitted to have 100,000 tons of waste on site at any time.
Richmond Bio Conversion Inc.: Construction is proceeding rapidly with structural steel in place and building cladding scheduled
to begin today. All of the major equipment has been purchased and is being constructed off-site. This equipment arrives at the
Richmond site in prefabricated form, ready for installation. Gisborne Group has been selected as the successful bidder for the
mechanical contract to do these installations. Lockerbie and Hole is providing a substantial amount of the prefabricated
equipment employed in the plant. Each project is costed at the best price and to provide the best return for shareholders. After
ordering certain major equipment, the Company has been informed by some of the selected suppliers that there will be some
delivery delays. A major contributor to this delay is the evaporator. The Company anticipates a plant opening, no later than
October.
Corinth Bio Conversion Inc.: The Company is pleased to announce that it is finalizing agreements to re-open the Corinth facility.
The agreement is subject to delivery of a suitable raw material supply contract. The partner assures the Company that the
contract will be delivered. Final negotiations are ongoing to contract with a major U.S. wastewater treatment firm to act as
operators of the re-commissioned Corinth Bio Conversion facility.
Thermo Agri-Products Inc.: The Company's agricultural products division has concluded an agreement with Global
Technologies Inc. [OTC BB:GBTHF - news] whereby Global acquires an exclusive license for the Province of Manitoba,
subject to conclusion of formal documentation and receipt of regulatory approval. The purchase price for the license is
CDN$200,000. A demonstration farm will be established in Manitoba by Global. The barns will be industry standard hog
production barns and the patented aerobic thermophilic Thermo Master(TM) technology will be employed to solve the
problem of animal waste management.
The Company is continuing discussions with its legal and financial advisors as to the spin-off of Thermo Agri-Products and a
share dividend to Thermo Tech(TM) Technologies Inc. shareholders.
Thermo Enzyme Products Inc.: The prototype production and development facility located in Langley, B.C. is nearing
completion. The facility will be used for small scale production of enzymes and to further develop new products. The Company
is continuing its discussion with legal and financial advisors as it prepares for the spin-off of Thermo Enzymes and the share
dividend, which will go to Company shareholders.
U.S. Thermo Tech(TM): Due to market demand and in order to work effectively with a large wastewater treatment firm, U.S.
Thermo Tech(TM) is proceeding with the establishment of a Massachusetts office to aggressively launch the Boston, New
York City and New England States markets.
Eastern European Licensee - Trooper: The Company has taken action to terminate the Eastern European License formerly held
by Trooper Technologies Inc. The termination resulted from the Company's determination that there have been numerous
breaches of the agreement by the licensee.
International Interest: A Korean team is visiting Canada this week to meet Company officials and tour the Hamilton Bio
Conversion facility in preparation for signing and commissioning, at their own expense, the standard feasibility study which must
be completed prior to the signing of a partnership agreement. Despite the downturn in the Asian economies, Korea remains an
attractive market for Thermo Master(TM) Mark II Plants and interest remains high on the part of Korean partners due to high
disposal fees with which they are forced to deal.
A Spanish delegation is meeting with the Company today and through this week in order to continue discussions for the
development of a partnership and a multi-plant package for Spain. They are acting as agents of the government of Valencia,
which requires a 12 plant package to deal with its current waste handling needs. The state of Valencia is under direct pressure
from the European Union to deal with management of its organic wastes and has also been provided $80,000,000 by the EU
to do so through the establishment of waste management facilities.
Mr. Rene Branconnier, President and CEO stated, ''The Company is now into a clear stage of productivity and growth. We
are no longer developing or fine-tuning. The focus is on creating business and building a worldwide market. Shareholders must
never forget the progress made to date and the major activity currently ongoing. I am pleased to be able to provide this update
and to communicate with shareholders on all the many ventures to which we are currently committed.''
Thermo Tech(TM) Technologies Inc. is a leader in organic waste recycling with offices in Vancouver and Toronto, Canada and
Atlanta, Georgia. Thermo Tech(TM)'s 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 wastewater 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:
Daniel B. Cumming
Director
(TM) The terms Thermo Tech(TM) and Thermo Master(TM) are registered trademarks of Thermo Tech(TM)
Technologies Inc. The term Thermo Master(TM) is licensed for use by Hamilton Bio Conversion Inc., Brampton Bio
Conversion Inc., Richmond Bio Conversion Inc., Oshawa Bio Conversion Inc. and Niagara Bio Conversion Inc.
SOURCE: Thermo Tech Technologies Inc.
Global Technologies Inc (OTC BB:GBTHF - news)
Thermo Tech Technologies Inc (Nasdaq:TTRIF - news)
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