CHESTNUT RIDGE, N.Y., Aug. 16, 2018 /PRNewswire/ -- BioHiTech Global, Inc. ("BioHiTech" or the "Company") (NASDAQ: 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).
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 Global
BioHiTech Global, Inc. (NASDAQ: 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 Statements
Statements 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.
SOURCE BioHiTech Global, Inc.