ENVIROMINT IN AGREEMENT WITH INTERNATIONAL INSURANCE INDUSTRIES INC. PROPOSES TO ACQUIRE THE HOME-STAKE COMPANIES
Announces First Quarter Results DALLAS, March 24 /PRNewswire/ -- EnvirOmint Holdings Inc.
(OTC Bulletin Board: ENVM) announced today it has entered into an agreement with International Insurance Industries Inc. ("INTINS"), a privately held Delaware corporation, to provide funds for the possible acquisition of The Home-Stake Oil & Gas Co. ("Oil&Gas") and The Home-Stake Royalty Corp. (Royalty), collectively known as "Home- Stake." The company also announced first quarter results.
The company and Home-Stake have been in on-going litigation for two years. During that time, while EnvirOmint was attempting to acquire control of Home-Stake, both Oil&Gas and Royalty engaged in purchases of each other's common stock. As a result, Royalty currently owns 32 percent of Oil&Gas, and Oil&Gas currently owns 17 percent of Royalty. EnvirOmint currently owns 23 percent of the outstanding common stock of Oil&Gas and approximately 18 percent of the outstanding common stock of Royalty. If EnvirOmint was successful in acquiring an additional 32 percent (or approximately 23,000 shares) of Royalty, added to its current 18 percent ownership, EnvirOmint would have effectively acquired control of both the Home- Stake companies. Any acquisition proposal by the company under present plans would require the board of directors of Home-Stake approving the transaction. The terms of an offer price have not been established and no formal offer has been made. Revenues for the quarter ended Jan. 31, 1993, were $400,996, as compared to $358,373 for the same period last year. Net loss for the quarter was $901,686 ($0.17 per share) as compared to $308,949 ($0.06 per share) last year. The weighted average shares outstanding were 5,230,766 and 5,540,321, respectively. Total assets increased to $8,938,626, up from $8,758,269 in the prior year. Stockholders' equity increased to $4,908,942, up from $4,706,352 in 1992. Service revenues in the Texaco Express Lube operation increased by 14 percent, cost of service revenues decreased by 12 percent, and gross profit margins increased by 11 percent. The company's operating losses for the period were due primarily to non-recurring expenses relating to the company's attempts to acquire voting control of Home-Stake, legal expenses relating to the company's acquisition of the properties of Es-Tech International Inc. and its technology for the EnvirOmint Can-Pactor, and the write-off of start-up expenses in the company's Can-Pactor operations. A settlement in the Can- Pactor litigation was reached in February among the parties. The company reports that it expects the Can-Pactor operation to contribute to revenues in the second quarter of fiscal 1993. The EnvirOmint Can-Pactor is a patented reverse vending machine which crushes aluminum cans and dispenses cash along with a manufacturer's discount coupon. The company has a total of 25 Can- Pactors installed in major supermarkets throughout the greater Denver area and plans to install an additional 22 Can-Pactors in Denver in the near future. -0- 3/24/93 /CONTACT: Fran Daniels of Financial Sciences of America, 310-278-4413, for EnvirOmint Holdings/ (ENVM)
CO: EnvirOmint Holdings Inc.; International Insurance
Industries Inc.; Home-Stake Oil & Gas Co.; Home-Stake Royalty Corp. ST: Texas IN: ENV SU: TNM ERN
KJ-MS -- LA009 -- 8993 03/24/93 09:30 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 24, 1993|
|Previous Article:||MACDONALD NAMED PRESIDENT OF ICN BIOMEDICALS|
|Next Article:||URETHANE TECHNOLOGIES AGREES TO LICENSE BICYCLE TIRE TECHNOLOGY IN CHINA|