Citadel Environmental Group Inc. announces completion of acquisition.THOUSAND OAKS, Calif.--(BW HealthWire)--March 26, 1997--Citadel Environmental Group Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CTEV CTEV Congenital Talipes Equino Varus ) today announced it has acquired 51% of the common stock of Applied Medical Recovery Inc. ("AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. "), an Arizona corporation. The purchase price was 1.53 million shares of Citadel's common stock and Citadel's agreement to fund commitments of up to $1.5 million for AMR's working capital and up to $2 million of capital expenditures. AMR will use the working capital to facilitate its expansion program, with rapid revenue increases anticipated throughout 1997 and 1998. The expansion program is expected to create a negative working capital position, currently estimated to be $1 million. The company expects to achieve positive cash flow in the fourth quarter of 1997. AMR's primary business is the recycling and reprocessing Reprocessing may refer to:
To date, AMR's revenues have come from AMT's initial prototype facility located in St. George, Utah St. George is a city located in the southwestern part of the U.S. state of Utah, and the county seat of Washington County, Utah.GR6 It is the principal city of and is included in the St. George, Utah Metropolitan Statistical Area. , which AMT began operating in 1996. On or about April 1, 1997, AMR will open its second reprocessing facility in Phoenix. This new facility has the capacity to generate between $18 to $25 million in annual revenues. The company anticipates that the Phoenix facility will reach capacity within 18 to 24 months of opening. Citadel may increase its percentage ownership of AMR by acquiring additional shares currently held by approximately 18 individual shareholders which make up the outstanding 49% ownership. Citadel is a holding company specializing in the financing of small- to medium-sized companies. This news release contains forward-looking statements which involve risks and uncertainties including, but not limited to, economic conditions, product and service demand, competitive products and pricing, and regulatory actions by the U.S. Food and Drug Administration. CONTACT: Citadel Environmental Group Inc., Thousand Oaks Donald F. Chelius, 805/777-3450 or Media & Investor Relations Investor relations The process by which the corporation communicates with its investors. : Phoenix Alliance Inc., 303/671-6763 |
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