Covol Technologies Inc. Announces Cash Proceeds of Approximately $54 Million.Business Editors LEHI, Utah--(BUSINESS WIRE)--Jan. 27, 2000 Covol Technologies Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CVOL CVOL Control Volume ), Thursday announced that the total anticipated cash proceeds to Covol from the recent sale of synthetic fuel Synthetic fuel or synfuel is any liquid fuel obtained from coal, natural gas, or biomass. It can sometimes refer to fuels derived from other solids such as oil shale, tar sand, waste plastics, or from the fermentation of biomatter. facilities will be approximately $54 million. The facilities that have been sold to date include Commonwealth, Utah No. 2, Algoma and Mohave. Covol is currently negotiating the sale of its Mountaineer facility. Upon completion of the Mountaineer sale, Covol will have received approximately $36 million and the balance of $18 million is expected to be received over the next four quarters, based upon several conditions. The company feels confident that these conditions can be achieved. In addition to the cash proceeds of approximately $54 million, Covol has negotiated ongoing royalty rights with each of the facilities that have been sold. The production based royalties will be paid over the next eight years and will provide substantial cash flow in addition to profits from the sale of Covol's proprietary binder binder: see combine. An earlier Microsoft Office workbook file that let users combine related documents from different Office applications. The documents could be viewed, saved, opened, e-mailed and printed as a group. materials. Kirk A. Benson, chairman and chief executive officer, stated, &uot;We are pleased with the progress being made by Covol. After the anticipated completion of the Mountaineer sale, Covol will have generated sufficient cash to repay all of its construction debts. The future royalties and binder profits from the facilities sold will help Covol to grow and provide additional value to its shareholders.&uot; Covol is a technology licensing company which engineers industrial waste and other by-products into value-added fuels and resources. Statements in this news release that relate to future plans, possible transactions, or projected valuations are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including any statement with respect to anticipated products to be produced using Covol's technology and Covol's strategy. Such statements are subject to risks and uncertainties that could cause actual results to differ materially. Although Covol believes that its expectations are based on reasonable assumptions, there are a number of business factors which singularly or combined may affect the company's future operating results. In addition to matters affecting Covol's industry or the coal industry or the economy generally, factors which could cause actual results to differ from expectations set forth in the above identified forward-looking statements include but are not limited to: the ability to successfully negotiate terms and consummate proposed transactions, ability to sell company-owned synthetic fuel facilities on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms, including the ability to negotiate settlements of contract terminations Defense procurement: the cessation or cancellation, in whole or in part, of work under a prime contract or a subcontract thereunder for the convenience of, or at the option of, the government, or due to failure of the contractor to perform in accordance with the terms of the contract (default). caused by facility relocations, ability to obtain necessary capital or financing, ability to comply with covenants in financing agreements Financing Agreements In the context of project financing, the documents which provide the project financing and sponsor support for the project as defined in the project contracts. , including financial performance criteria, ability to conserve capital through cost reductions until operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. exceed expenses, ability of licensees to market synthetic fuel produced, generating royalties for Covol, ability of licensees to achieve expected production levels at the synthetic fuel facilities, favorable IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. tax treatment, availability of natural resources and suitable raw materials, ability to locate appropriate sites for facilities, ability of Covol to complete specific research and development projects, and the commercial viability of Covol's technologies. |
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