Transaction in Excess of $12.5 Million
Dollars
Non-Refundable Deposit of $1.5 Million Dollars
Record Water Remediation Revenues and Excess Real Estate
Sale
SCOTTSDALE, AZ, April 22, 2014 /CNW/ - RDX Technologies
Corporation ("RDX" or the "Company") (TSXV: RDX, OTCQX:
RGDEF, FSE: RL7) a water treatment and energy technology
Company, today announced that it has received an Approval Notice
for the purchase of excess land located at its Santa Fe Springs, California facility.
The Approval Notice was received on April 17th, 2014.
The Company will receive approximately $5.1MM for real estate and approximately
$7.5 for remediation management,
including historical water and water storage tanks located on the
Cenco refinery, formerly owned by Lakeland Development Company.
Exact figures will be released after closing, due to lot line
adjustments now in process with the City
of Santa Fe Springs, which will impact the total acreage
sold. The purchaser shall remain confidential until closing which
is anticipated to be on or before May 31,
2014.
The Company estimates that net cash proceeds from the real
estate sale and remediation contract will be approximately $8MM
after all transaction expenses are paid, including real estate
taxes.
The Company will be retaining approximately 2 acres for
continued operations, and is planning to construct a new 20,000
square foot building on the remaining acreage. The Company will
retain ownership of its existing waste water discharge permit with
the County of Los Angeles.
As a part of the overall transaction the Company is also
eliminating an existing remediation agreement with Lakeland
Development Company. This will result in the cancellation of common
shares to Lakeland, reducing the outstanding shares of the Company
by approximately 4.65MM shares.
Dennis M. Danzik, Chief Executive
Officer of RDX stated; "I want to first recognize Kevin Bridges, our CFO and his team for getting
this transaction set to close within the next few weeks. This is a
record single transaction for the Company, and was complex. We not
only were working with one entity in bankruptcy, (the former seller
Lakeland Development Company) but at the same time our team has
been remediating tens of millions of gallons of historical waste
water and sludge on the property. As well, we are demolishing old
petroleum tanks, as they are emptied and cleaned. This was a large
scale operation, over 20 acres, handled efficiently. Our team will
receive recognition for cleaning up a property that has been
derelict and left to deteriorate for decades."
Danzik continued, "Our work with the City of Santa Fe Springs and Los Angeles County continues to be productive,
and the City and County also deserve recognition for doing what
staff could to expedite the former refinery clean up. This property
and the neighboring acreage are now headed toward a first class
development, which our Company will be proud to operate within, as
an owner."
The Company stated the following positive impacts on the balance
sheet at closing (subject to adjustments in foreign exchange
rates);
- Santa Fe Springs Purchase Price Payable eliminated:
$5.77MM
- Environmental Remediation Liability eliminated: $5.85MM
- Environmental Remediation Receivable Lakeland eliminated:
$5.85MM
- Property, Plant, and Equipment decrease: $5.77MM
- Reduction in Company outstanding shares of $4.65MM
Danzik continued, "This transaction strengthens the
Company's balance sheet, positions RDX for substantial growth, and
expansion through new debt facilities. It puts our Company in a
position of strength at the start of our fiscal year. A great place
for RDX to be."
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis M.
Danzik"
Dennis M. Danzik, CEO
danzikdirect@rdxh2o.com
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release. This news release may contain
forward-looking statements. Forward-looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements. Such information is
subject to known and unknown risks, uncertainties and other factors
that could influence actual results or events and cause actual
results or events to differ materially from those stated,
anticipated or implied in the forward- looking information. Readers
are cautioned not to place undue reliance on forward-looking
information, as no assurances can be given as to future results,
levels of activity or achievements."
SOURCE RDX Technologies Corporation