RIVERBANK, Calif., March 19, 2012 /PRNewswire/ -- Green EnviroTech Holdings Corp. (OTCBB: GETH) announced today that the company's main focus will be the conversion of plastic and tires to oil, and shredder residue to oil and compound plastic resin.
The company's intention is to enter into the plastic and tire recycling market by the establishment of plants within the US. The company has entered into a non-binding Letter of Intent (LOI) with Ebbros I Investment Group, of Kansas City, Missouri (signed in 7-9 2011) which contemplates that Ebbros will develop the plants, including all infrastructures, install all necessary equipment, and lease the same back to GETH. The letter of intent also contemplates that Ebbros will also purchase all oil produced at the plants. The lease-back agreement under the letter of intent is to be for a period of ten years, and GETH will have a buy back clause during this period for the purchase of the physical site and equipment. The companies expect to finalize the contract in the 2nd quarter.
Since singing the LOI with Ebbros GETH has been testing oil samples from the process with various refineries across the country. The company's COO, Lou Perches traveled to the plant where the technology was developed, the systems are manufactured and tested prior to shipment. In addition, Mr. Perches visited a site where tires are converted into oil using the same equipment. Oil samples were taken and sent to a certified lab and selected refineries for testing as per the refineries specifications. The final results will be available by the first week in April.
The second business model is with ACG Consulting, LLC utilizing the EB5 Program. GETH and ACG will enter into a JV agreement forming Limited Liability Companies (LLC) for the purpose of owning and developing Shredder Residue (SR) Recycling Plants in the United States. Each Recycling Plant will be organized as a wholly owned subsidiary of the JV. ACG has specialized expertise in the employment based EB-5 Visa Program administered by the United States Citizenship and Immigration Services ("USCIS") under the Immigration Act of 1990. Since signing a non-binding LOI in October of last year GETH has been researching locations. The first plant is planned for Wisconsin and GETH plans to finalize and sign a lease on a building that meets the EB5 criteria. As of today there are two locations with commercial buildings that are being reviewed by both parties for approval.
Gary De Laurentiis, Chairman and CEO of GETH, said, "We continue to work diligently and efficiently to bring the first 2 types of plants to fruition and with the help of our two partners the financial obstacles normally encountered have been removed. The financing of both projects does not require GETH to sell equity in the company."
About Green EnviroTech Holdings Corp. Green EnviroTech Holdings Corp. is a plastics and tires 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.
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SOURCE Green EnviroTech Holdings Corp.