Creative Recycling Technologies, Inc. Divests a Unit and Settles Claims.BRONXVILLE, N.Y.--(BUSINESS WIRE)--June 22, 1999-- Creative Recycling Technologies, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CRTZ CRTZ chemoreceptor trigger zone. ) today announced the divestiture of a small business unit in conjunction with the settlement of claims which relate to events which occurred prior to the merger of AA Corp. into Classic Restaurant International, Inc. (Georgia) which created CRTZ. These transactions are part of CRTZ's program of disposing of non-core assets, reducing corporate debt, settling old litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and focusing exclusively on commercialization of its innovative and proprietary tire recycling Tire recycling is the process of recycling vehicles tires (or tyres) that are no longer suitable for use on vehicles due to wear or irreparable damage (such as punctures). technology. Specifically, Creative Recycling Technologies: 1. Transferred and assigned to Mr. James Robert Shaw Robert Shaw may refer to:
shares of Classic Restaurants International, Inc. (Florida), a 100%-owned subsidiary which operates the Musicana Dinner Theater in Boca Raton, FL. This transaction partially settles certain cross-obligations between the Company and Mr. Shaw. 2. Signed a settlement agreement with Mr. Mark Shoom concerning his prior claims and lawsuit regarding his $80,000 loan to Classic Restaurants International, Inc. (Georgia). 3. Signed a settlement agreement with Mr. John Jardine concerning his prior claims and law suit regarding the repayment of his purchase of a $50,000 convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. issued by Classic Restaurants International, Inc. (Georgia). Pursuant to these transactions, Messrs. Shoom and Jardine collectively received 335,000 shares of CRTZ Common Stock to which Mr. Shaw would have otherwise been entitled, thus avoiding any shareholder dilution. In connection with these developments, Mr. Stephen H. A. LaSala, President/CEO of CRTZ commented: "Though secondary to CRTZ's strong technology and attractive opportunities, it was necessary to resolve these corporate matters. While we obviously would have preferred that these issues had not existed, they all occurred at the predecessor corporation before CRTZ's reverse merger in April, 1998. Resolution of these issues provides Creative Recycling Technologies, Inc. with the following benefits: 1. Divestiture of the restaurant subsidiary eliminates an unprofitable activity that was unrelated to tire recycling, which became the new and sole business of CRTZ after the reverse manager. 2. Settlement of the claims: -Reduces CRTZ's liabilities. -Improves CRTZ's shareholder equity. -Was achieved without any cash outlay or issuance of net new common shares. 3. Simplifies and enhances the auditing process, currently in progress. 4. Eliminates a nagging distraction on CRTZ's management's time and efforts." Said Mr. LaSala: "We remain very positive about the prospects for successful application of CRTZ's unique technology to ameliorate the pervasive scrap tire environmental problem in the U.S., and abroad. Management has been, and is, pursuing corporate initiatives in the substantive areas of site selection and procurement, environmental approvals, and financing, and we believe that we are making progress in these areas. Achievement of the divestiture/claims issues will allow singular and more rigorous pursuit of CRTZ's attractive opportunities in scrap tire recycling." Between 2000 - 2004, CRTZ plans to construct approximately 10 facilities, each capable of processing 10 million scrap tires per annum Per annum Yearly. . Even 5 plants, each built one year apart, could collectively recycle 150 million scrap tires on a cumulative basis over 5 years. Assuming recoverable by-product by·prod·uct or by-prod·uct n. 1. Something produced in the making of something else. 2. A secondary result; a side effect. by-product Noun 1. values of approximately $2.00+/tire and full plant utilization, cumulative revenues would exceed $300,000,000 at the operating plant level. CRTZ, as licensor of the process, would receive a portion of these revenues in the form of development fees, management fees, and a share of plant profits. A number of statements contained in this Press Release are forward-looking statements which are made pursuant to the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements involve a number of risks and uncertainties, including the timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and other factors. The actual results that the Company may achieve may differ materially from any forward-looking statements due to such risks and uncertainties. For additional information please contact Investor Relations Investor relations The process by which the corporation communicates with its investors. : Mr. Robert J. Brot, 914-771-5217 |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion