HOUSTON, April 14, 2011 /PRNewswire/ -- Matrixx Resource Holdings, Inc. (OTC: MXXH), Matrixx Resource Holdings, Inc. announced today that it has entered into an agreement in principle to form a Joint Venture partnership engaging in the trading and processing of plastic and metal resources.
To run concurrently with the Company's oil and natural gas program, Matrixx has agreed to form a subsidiary in which the partnership will engage in the purchase, sale, and processing of plastic and metal commodities. The Company plans to trade and recycle post-consumer polyethylene ("PET") plastic bottles and their HDPE caps and sell the recycled product(s) to companies in the United States where there is a high demand for recycled PET products.
The partnership is working on developing a proprietary equipment design and process that will eliminate the human component in the sorting process thus creating a more efficient and substantially more cost effective system than is currently available on the market today. The long term objective is to build a state of the art recycling facility in the New York Metropolitan Area that will incorporate renewable energy sources and serve as an education center. This plant would be FDA certified and will be able to further process the post-consumer plastics into high quality grades of resin for potential use in food and beverage containers as well as medical supplies.
Furthermore, the partnership has identified and initiated discussions for the acquisition of certain processing facilities; and, for purchase and sales contracts within and around Central and South America. Included in this formula, the partnership plan provides for specific collection and sales contracts of specified tradable commodities, including plastic, brass, copper, aluminum, and other valuable tradable resources.
Under the terms of the agreement, Matrixx will retain a minority percentage between 25% and 50% of the newly formed subsidiary. To facilitate the transaction, the acting CEO, Ms. Catherine Thompson, has agreed to concede her accrued compensation on record with Matrixx for the past two years. In addition to the concessions, certain shareholders, including Ms. Thompson, have agreed to retire approximately one hundred thirty million (130,000,000) shares of Matrixx common stock to Treasury. Additionally, the agreement calls for Matrixx to have managerial control of the newly formed subsidiary thus allowing the Company to maintain consolidated financials.
Upon completion of a definitive agreement with the partnership, Matrixx will file the required 8K filings and initiate the audit of the identified acquisitions. Any subsequent purchase and sales contracts will be announced as they become readily available.
Safe Harbor Statement: This press release contains forward-looking statements as defined in The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties, and actual results may differ materially from those expressed in any forward-looking statement. Such risks and uncertainties include, but are not limited to, the ability of Matrixx to complete the proposed acquisition(s), the results of Matrixx's due diligence review of the candidate(s), the success of the business of the acquisition candidate(s), including the ability of Matrixx to continue to sell the applicable products and the acceptance of those newly designed products by the market, market conditions, the general acceptance of the Company's products and technologies, competitive factors, timing, and other risks described in the Company's SEC reports and filings.
SOURCE Matrixx Resource Holdings, Inc.