Green EnviroTech Holdings Corp. Completes Acquisition of Hong Kong-Based Magic Bright Ltd. With Over $28 Million in Annual Reven
26 Mai 2011 - 2:00PM
Marketwired
Green EnviroTech Holdings Corp. (OTCBB: GETH), a company at the
forefront of waste plastics recovery and recycling, announced today
the details of its acquisition of Magic Bright Limited, a leading
Hong Kong-based waste plastics recycling and trading company with
the filing of an amended 8K.
The acquisition provides Green EnviroTech the scale and
resources to deliver industry leading products that address the
significantly expanding US$50 billion global market for recycled
plastic products. The transaction, which is valued at approximately
$6 million and is being financed with cash and stock, will help
achieve Green EnviroTech's goal of capturing a significant portion
of the global market for products derived from shredder residue.
Management teams from both parties have already begun to execute
the integration of the two companies' products, technologies and
customers to ensure a smooth transition that will deliver immediate
value to investors.
In the U.S. alone, Green EnviroTech intends to redefine waste
plastics recycling by processing and selling a large amount of the
approximate 1.25 million tons of recovered materials from the auto
shredder residue generated annually by metal recyclers. Through the
acquisition, Green EnviroTech gains immediate access to Magic
Bright's vast distribution channels in Asia including into China's
lucrative markets where the demand for recycled plastics even
exceeds that of the U.S.
Magic Bright has secured long term distribution contracts in
mainland China and has consistently reported annual gross revenues
in excess of US$28 million for each of the past 3 years, and is
anticipated to generate revenues amounting to US$40 million its
first year after acquisition by using increased marketing and
investing additional working capital. Furthermore, Green EnviroTech
is not expecting the cost of the acquisition to have a negative
impact on its 2011 GAAP EPS.
Gary De Laurentiis, CEO and Chairman of Green EnviroTech
Holdings Corp., stated that "the acquisition of Magic Bright should
be immediately beneficial to shareholders as the combined company
will not only enjoy operational synergies, but also a vastly
strengthened balance sheet with a solid asset base and significant
recurring revenues for years to come."
About Green EnviroTech
Holdings Corp.
Green EnviroTech Holdings Corp. is a plastics recovery and
recycling company which removes contaminants from recovered plastic
recaptured from end of life automotive vehicles shredded for their
metal. Green EnviroTech Holdings Corp. processes this recovered
plastic to produce compounded plastic resin and light sweet crude
oil as end products. Its unique patented process significantly
reduces the amount of shredder residue going to landfills by up to
40 percent creating considerable cost savings for metal recyclers
while also dramatically reducing the volume of materials going to
the landfill. The Company has developed long term strategic
partnerships that allow it to receive feedstock at near zero cost
and has also leveraged its patented technology to ensure guaranteed
sale of 100% of its production output thereby creating a
sustainable and high margin business model. A valuable by-product
of the Green EnviroTech process is commercial grade, sweet crude
oil that will also be sold to industry at market prices. For more
information please visit www.greenenvirotech.com.
Safe Harbor Statement:
This press release contains forward-looking statements. Any
statements in this news release that are not statements of
historical fact may be considered to be forward-looking statements.
Written words, such as "may," "will," "expect," "believe,"
"anticipate," "estimate," "intends," "goal," "objective," "seek,"
"attempt," or variations of these or similar words, identify
forward-looking statements. By their nature, Forward-looking
statements and forecasts involve risks and uncertainties because
they relate to events and depend on circumstances that will occur
in the near future. For a discussion of these and further risks and
uncertainties, please see our filings with the Securities and
Exchange Commission. We file annual, quarterly and special reports,
proxy statements and other information with the SEC. You may read
and copy any reports, statements or other information that we file
at the SEC's public reference room at 100 F Street, N.E.,
Washington, D.C., 20549. Please call the SEC at 1-800-SEC-0330 for
further information on the public reference room. Our public
filings with the SEC also are available from commercial document
retrieval services and at the Web site maintained by the SEC at
http://www.sec.gov.
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Contact: Investor Relations Phil Uhrik Email Contact 518 589
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