WAVETECH AGREES TO SELL ITS OHIO LANDFILL SUBSIDIARY
WAVETECH AGREES TO SELL ITS OHIO LANDFILL SUBSIDIARY CHERRY HILL, N.J., Jan. 6 /PRNewswire/ -- Wavetech, Inc.
(NASDAQ: WAVE) (Wave) announced today that it had entered into an agreement with Rockhill Construction, Ltd., a Canadian corporation, to sell all of its stock interest in its IES wholly owned subsidiary that represents a landfill in Carroll County, Ohio, which is the subject of a landfill disposal permit application with an estimated capacity of 18,800,000 cubic yards.
The consideration for the purchase was estimated to be in excess of $20 million, set forth as follows: 1. A Letter of Credit acceptable to seller in the amount of $1.2 million to be held in escrow and released to Wave when an operating permit from the State of Ohio has been issued to the buyer; 2. Over the life of said landfill, a royalty payment in the amount of $1 per cubic yard for each and every yard of disposal area that is filled at the landfill (a minimum royalty per year as well as guarantees and penalties shall be negotiated prior to closing); 3. Wave shall receive a Management and Operations Agreement under terms and conditions to be negotiated prior to closing, for a minimum of a one-year period; 4. A Monitoring Agreement shall also be negotiated prior to closing where Wave shall be compensated and shall have the exclusive right to monitor all of the environmental projects that generate any and all waste materials disposed of at the site for the life of the disposal capacity of this landfill. The proposed closing date shall be on or before March 31, 1992, and within 90 days after the closing, the buyer shall have the right to terminate the agreement if the operating permit has not been transferred, not due to the fault of buyer. Ralph Leporace, president of Wave, said, "This agreement, in addition to the New Mexico Operations Agreement, will position Wave as an operator and manager of landfills instead of owner which will limit Wave's longterm potential liabilities, and will also assist the monitoring and other environmental services related to Wave's other divisions." /delval/ -0- 1/6/92 /CONTACT: Ralph Leporace, president of Wavetech, 609-486-9200/ (WAVE) CO: Wavetech, Inc.; Rockhill Construction, Ltd. ST: New Jersey IN: SU: TNM
MP-KA -- PH004 -- 6810 01/06/92 10:20 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Jan 6, 1992|
|Previous Article:||NEWBRIDGE TO SUPPLY MAJOR CORE NETWORK NODES TO SYNCORDIA|
|Next Article:||CHECKPOINT SYSTEMS, INC. CHARTS NEW COURSE WITH INTRODUCTION OF POINT-OF-SALE MONITORING SYSTEM (Product Announcement)|