The Martinsburg West Virginia facility is expected to generate over $7 million in revenue in 2019 through processing municipal waste into a renewable EPA approved Solid Recovered Fuel
CHESTNUT RIDGE, N.Y., Aug. 16, 2018 /PRNewswire/ -- BioHiTech Global, Inc. ("BioHiTech" or the "Company") (BHTG),
a technology and services company that provides cost-effective and
sustainable waste management solutions, announced today that it has
entered into a letter of intent ("LOI") with Entsorga USA
to increase its stake in the nation's first resource recovery facility
(the "Martinsburg Facility") utilizing a proprietary high efficiency
biological treatment (HEBioT) technology for the disposal and recycling
of mixed municipal solid waste (MSW).
BioHiTech Global, Inc. (PRNewsfoto/BioHiTech Global, Inc.)
The Martinsburg Facility is expected to generate over $7 million
in revenue in 2019 when it begins its first year of full operations.
Apple Valley Waste, a subsidiary of Gold Medal Group and co-owner of the
Martinsburg Facility, has contracted to provide the MSW feed stock for
ten years. Approximately 40% or more of the waste processed at the
facility will be converted into a clean burning EPA approved alternative
fuel (Solid Recovered Fuel or SRF) through the patented HEBioT
process. The Solid Recovered Fuel is contracted to be sold for ten
years to a privately held company in West Virginia that intends to use
it as an approved supplement to fossil fuels in the production of
cement.
The LOI contemplates BioHiTech acquiring up to an additional 30% stake in the Martinsburg Facility from Entsorga USA
in exchange for a number of shares of BioHiTech common stock to be
determined in a definitive agreement. If fully completed, the
acquisition would make BioHiTech the largest equity owner of the
Martinsburg Facility at over 47%, and enable the Company to consolidate
the Martinsburg operations in its
financials statements. BioHiTech acquired its original 17.2% stake in
the Martinsburg Facility last year for approximately $1 million in cash with an option to purchase an additional 22.4% stake for $1.4 million.
The acquisition is subject to entering into a definitive agreement
among the parties containing the final terms of the acquisition.
BioHiTech controls the exclusive U.S. development rights for the patented HEBioT solid waste processing technology developed
by Entsorga Italia in 11 northeastern states and the District of
Columbia. The Company is currently in the permitting process for the
construction of two additional HEBioT facilities in New York and is in preliminary discussions to sight an additional facility in Philadelphia.
Frank E. Celli,
CEO of BioHiTech, commented, "We are excited about the opportunity to
finally move forward with our plan to take a larger stake in the
Martinsburg Facility and potentially add over $7 million dollars
of high margin revenue to our income statement in 2019. While
construction delays in 2017 pushed this plan back into 2018, we are now
confident the Martinsburg Facility will be fully operational in the
coming months. We are also pleased to have our partners at Entsorga
demonstrate continued faith in our Company through a willingness to
exchange their ownership for BioHiTech common stock. We intend to work
diligently with Entsorga to finalize the definitive agreement and
complete this important value generating transaction for our
stockholders in the near future."
About BioHiTech GlobalBioHiTech Global, Inc. (BHTG),
is changing the way we think about managing waste. Our innovative waste
management services combined with our disruptive technologies provide
sustainable waste disposal and supply chain management solutions for
businesses and municipalities of all sizes. Our technology platform,
including the on and off-site biological treatment of waste, is designed
to reduce overall waste generation and virtually eliminate landfill
usage while creating a valuable renewable fuel. For more information,
please visit www.biohitech.com.
Forward Looking StatementsStatements
in this document contain certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, as amended. These statements are
based on many assumptions and estimates and are not guarantees of future
performance. These statements may involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of BioHiTech Global, Inc. to be materially
different from future results, performance or achievements expressed or
implied by such forward-looking statements. Further, there can be no
assurance that the Company will be able to enter into a definitive
agreement on terms that are favorable to the Company or that the Company
will be able to consummate the acquisition. BioHiTech Global, Inc.
assumes no obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these forward-looking
statements, even if new information becomes available in the future. Our
actual results may differ materially from the results anticipated in
these forward-looking statements due to a variety of factors, including,
without limitation those set forth as "Risk Factors" in our filings
with the Securities and Exchange Commission ("SEC"). There may be other
factors not mentioned above or included in the BioHiTech's SEC filings
that may cause actual results to differ materially from those projected
in any forward-looking statement. BioHiTech Global, Inc. assumes no
obligation to update any forward-looking statements as a result of new
information, future events or developments, except as required by
securities laws.
Company Contact:BioHiTech Global, Inc.
Rich Galterio
Executive Vice President
Direct: 845.367.0603
rgalterio@biohitech.com
www.biohitech.com
Rich Galterio
Executive Vice President
Direct: 845.367.0603
rgalterio@biohitech.com
www.biohitech.com
