LONDON -- (Marketwired) -- 07/09/13 -- E-Waste Systems, Inc. (OTCQB: EWSI) (the "Company"), an electronic waste management and reverse logistics company, announced that it has entered into a letter of intent to acquire eWaste recycler 2TRG ('2TRG') of Cincinnati, Ohio.
The acquisition is expected to add more than $5 million in current annual revenues and over 12M pounds processed with the potential capacity to reach 75M in annual tonnage. Operating from over 140,000 square feet of recycling space in Ohio and over 50,000 square feet in New York, 2TRG has already diverted more than 75M tons of eWaste from landfills. 2TRG has achieved among the most complete array of recycling credentials anywhere in the USA, including R2, eStewards, State and Federal EPA registration, and ISO 14001 and ISO 18001.
Carol Weinstein, founder and CEO of 2TRG, is actively involved in the eStewards organization, one of the nation's most important eWaste accreditation organizations, which was created under the direction of the Basel Action Network (BAN). She participates with several committees which are helping to define the next version of the eStewards standards. The European Union's WEEE Directive, which is among the most stringent set of eWaste standards in the world, was enacted following significant influence from BAN. The USA has never ratified the BAN treaty and there is presently no national legislation for the management of eWaste. EWSI's position is to support those voluntary standards, including eStewards, which most closely follow the principles espoused by BAN and enacted by the European Union.
"I am personally thrilled to be teaming up with Carol and her team. She founded her company with the highest standards in mind and has delivered all that and more. The credentials she has attained are impeccable and we could not be happier to join forces with Carol," stated Martin Nielson, CEO of EWSI. "2TRG has invested more than $1.2 million in eWaste recycling equipment upon which we can jointly build. The location in Ohio is very strategic from a logistics position, while the New York operation provides full eWaste recycling certification in that most important state," added Mr. Nielson.
"We recently entered into a Teaming Agreement with EWSI and have already begun some commercial collaboration, so this is a very logical next step for us," stated Ms. Weinstein. "The principles we worked hard to see implemented now have the chance to be extended globally with EWSI and the team. Our commitment to zero landfill, and to being on the leading edge of setting the standards of compliance, are a perfect complement."
All employees will be retained and EWSI intends to deploy the Cincinnati unit as a strategic operational hub for the Midwest and to build upon the New York location to expand into the northeast. Carol Weinstein, will remain as CEO of 2TRG and will join the EWSI core management team.
The terms of the initial transaction will be filed with the SEC on Form 8-K, as with the Letter of Intent. Definitive agreements have already been tendered, due diligence has already been largely completed and, pending board approval, the final transaction is expected to close within a few months. The initial transaction involves acquiring 25% of the equity of 2TRG in exchange for $385,000 of Series A Preferred stock of EWSI, leading to the acquisition of 100% of the business as soon as the final agreement is concluded.
Most Popular Stories
- Boehner Lashes Out Against Ted Cruz, Far Right
- TFA Recruiting DACA Recipients
- Hawaii Official Who Release Obama Certificate Only Victim of Plane Crash
- Holiday Shopping Off to a Slow Start This Season
- Ford Plans New Cars, Jobs in 2014
- Gold, Silver Slide on Prospects of Fed Exit
- 'Rape Insurance' Bill Passes in Michigan
- Ted Cruz Coloring Book Selling Briskly
- Kim Jong Un's Uncle Executed
- Scotch Whisky Sales Raise Distillers' Spirits