Transaction in Excess of $12.5 Million Dollars
Non-Refundable Deposit of $1.5 Million Dollars
Record Water Remediation Revenues and Excess Real Estate Sale
SCOTTSDALE, AZ, April 22, 2014 /CNW/ - RDX Technologies Corporation ("RDX" or the "Company") (TSXV: RDX,OTCQX: RGDEF, FSE: RL7) a water treatment and energy technology Company, today announced that it has received an Approval Notice for the purchase of excess land located at its Santa Fe Springs, California facility. The Approval Notice was received on April 17th, 2014.
The Company will receive approximately $5.1MM for real estate and approximately $7.5 for remediation management, including historical water and water storage tanks located on the Cenco refinery, formerly owned by Lakeland Development Company. Exact figures will be released after closing, due to lot line adjustments now in process with the City of Santa Fe Springs, which will impact the total acreage sold. The purchaser shall remain confidential until closing which is anticipated to be on or before May 31, 2014.
The Company estimates that net cash proceeds from the real estate sale and remediation contract will be approximately $8MM after all transaction expenses are paid, including real estate taxes.
The Company will be retaining approximately 2 acres for continued operations, and is planning to construct a new 20,000 square foot building on the remaining acreage. The Company will retain ownership of its existing waste water discharge permit with the County of Los Angeles.
As a part of the overall transaction the Company is also eliminating an existing remediation agreement with Lakeland Development Company. This will result in the cancellation of common shares to Lakeland, reducing the outstanding shares of the Company by approximately 4.65MM shares.
Dennis M. Danzik, Chief Executive Officer of RDX stated; "I want to first recognize Kevin Bridges, our CFO and his team for getting this transaction set to close within the next few weeks. This is a record single transaction for the Company, and was complex. We not only were working with one entity in bankruptcy, (the former seller Lakeland Development Company) but at the same time our team has been remediating tens of millions of gallons of historical waste water and sludge on the property. As well, we are demolishing old petroleum tanks, as they are emptied and cleaned. This was a large scale operation, over 20 acres, handled efficiently. Our team will receive recognition for cleaning up a property that has been derelict and left to deteriorate for decades."
Danzik continued, "Our work with the City of Santa Fe Springs and Los Angeles County continues to be productive, and the City and County also deserve recognition for doing what staff could to expedite the former refinery clean up. This property and the neighboring acreage are now headed toward a first class development, which our Company will be proud to operate within, as an owner."
The Company stated the following positive impacts on the balance sheet at closing (subject to adjustments in foreign exchange rates);
- Santa Fe Springs Purchase Price Payable eliminated: $5.77MM
- Environmental Remediation Liability eliminated: $5.85MM
- Environmental Remediation Receivable Lakeland eliminated: $5.85MM
- Property, Plant, and Equipment decrease: $5.77MM
- Reduction in Company outstanding shares of $4.65MM
Danzik continued, "This transaction strengthens the Company's balance sheet, positions RDX for substantial growth, and expansion through new debt facilities. It puts our Company in a position of strength at the start of our fiscal year. A great place for RDX to be."
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis M. Danzik"
Dennis M. Danzik, CEO
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SOURCE RDX Technologies Corporation