NORWALK, Conn., April. 25, 2013 /PRNewswire/ -- The Tirex Corporation (OTCPK: TXMC) – owner of a U.S. patented tire recycling (TCS) technology – entered into a License Agreement with Green Recycling Solutions International LLC (GRSI) of Fort Lee, New Jersey, to market, sell and own/operate TCS facilities.
"The agreement licenses GRSI to sell and own/operate TCS facilities in its licensed territory including, but not limited to, North American states and provinces, the Caribbean, Africa, Central and South America," according to Tirex President, John L. Threshie Jr. "GRSI and Tirex, both collectively and separately, have been marketing and planning to sell and own/operate TCS facilities in any and all suitable markets worldwide," Threshie added.
"On all TCS Systems sold, Tirex charges an annual license fee and a manufacturing commission. We project TCS facilities to have an approximate 25% Internal Rate of Return and 100% Return on Investment under four years for a $7 million turnkey TCS facility, prior to the consideration of any tipping fees or other forms of scrap tire recycling subsidies, although there can be no assurance that such results will be accurate for any single installation," Threshie said.
GRSI's CEO, Julio Llaguno, stated: "We committed our new company to go to market with Tirex's TCS technology because we believe it is the best new technology available to make a major impact in the scrap tire industry." According to Llaguno, GRSI has identified several markets suitable for the TCS technology and they are ready to start setting up the first TCS facility in a market soon to be announced.
"This agreement is the first necessary step towards the commercialization of our technology. As part of the compensation for its license and its stated intent to purchase a TCS System once Tirex returns to a current-reporting status with the SEC, GRSI will finance the audit of our financials and its procedures, which should move us to a better position in the OTC marketplace," Threshie added.
For the GRSI financing of the legal and audit costs to restore Tirex as a current-reporting SEC company, Tirex, upon the completion of certain financial milestones paid for by GRSI through the Escrow Agent, will progressively issue GRSI 288,936,341 restricted common shares also through the Escrow Agent. All share issuances are subject to a 9.99% Equity Blocker provision. The Tirex Board is preparing an application to increase the amount of the authorized common shares to accommodate this transaction.
Louis V. Muro, inventor of the TCS technology and Tirex founder, offers: "After years of development we are excited to associate with a partner worthy and capable of financing not just the first TCS commercial system, but others, as well."
Tirex's TCS (Tirex Cryo System) process freezes scrap tire pieces with cold air, as opposed to expensive liquid nitrogen, and then "breaks" the rubber into upmarket "cryogenic" crumb rubber through its patented "fracturing mill." This process also separates the marketable strands of steel and fiber from the crumb rubber with a "green," environmentally-friendly, economically-attractive tire recycling system. For more information, go to www.tirex-tcs.com.
ABOUT GREEN RECYCLING SOLUTIONS INTERNATIONAL
Green Recycling Solutions International LLC is a private company incorporated in Delaware with its head office in Fort Lee, New Jersey. Its mission is to integrate the scrap tire industry with the TCS technology by selling and owning/operating TCS facilities in its licensed territory as well as other worldwide markets. For more information, go to www.grsillc.com.
(The statements which are not historical facts contained in this news release are forward-looking statements that involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.)
SOURCE The Tirex Corporation