GOLDEN, Colo., Feb. 24, 2015 /PRNewswire/ -- Strategic Environmental & Energy Resources, Inc. (SEER) (OTC - SENR) announced today that it entered into a Joint Venture Agreement with Xinhua Energy Environmental Technology Co., Ltd, a division of a large multi-national environmental company based in China ("Xinhua"). Xinhua is one of the largest design, engineering and manufacturing firms in China for large-scale lime kiln equipment with global installations and 2014 revenue for the division estimated at RMB 410,000,000 (or approximately $USD 70 million).
The agreement provides for the formation of a U.S. joint venture entity between SEER and a newly formed, special-purpose domestic company owned by Xinhua ("JV Entity") This JV Entity will be granted the exclusive rights to distribute SEER's patented Paragon Technology in China, Hong Kong, Macau and the Taiwan territories ("Territory"). The grant is for both the medical waste, as well as the refinery vertical markets within the Territory. The Agreement calls for, among other things, the JV Entity to be owned and managed 50/50 by SEER and Xinhua and an obligation by Xinhua to fund all necessary and reasonable capital requirements to permit and roll out the Paragon Technology in the Territory as well as staff the JV Entity's day-to-day operational requirements. The Agreement also calls for the payment of a $350,000 placement fee for the first Paragon unit to be commissioned in China. Upon the occurrence of certain events and timely performance by Xinhua, a second placement fee of $350,000 minimum must be paid and, upon that second payment, Xinhua will then be granted exclusive manufacturing rights to produce the units to be deployed in the Territory subject to performance and quality assurance terms and conditions.
"This agreement represents many months of mutual due diligence and negotiations," said J. John Combs, CEO of SEER. "Beginning last October, we have enjoyed hosting the Xinhua delegation in our Florida and California facilities as well as in our executive offices in Golden. We additionally traveled to Beijing and Shijiazhuang to meet the Xinhua executive and engineering teams and tour their facilities. We are pleased to have found a well-suited partner in China with such a high level of engineering and manufacturing competence, technological expertise and an impressive intellectual property portfolio. We are confident that the JV will have the ability to deploy and capture market share in what is quite possibly the single largest market for medical waste in the world with approximately 26,000 hospitals in 2014, and a growing installed base of kilns throughout the world."
"While it is very difficult to project revenues and timing of permitting and required approvals, this appears to be an exceptional opportunity for SEER and a represents a milestone in our efforts to establish an international market presence. We are also currently pursuing similar opportunities and partners in other parts of the world," concluded Mr. Combs.
Mr. Jia Huiping, the CEO and Chairman of Xinhua in China, commented, "The timing for this agreement is very good, with China becoming more sensitive to the challenges surrounding the treatment and disposal of all types of medical waste. We believe the Paragon Technology can be a big significant part of the safe and cost-effective solution to these issues and we are pleased to have entered into our agreement after many visits to our new partners in the U.S. We have already commenced marketing here in China and are looking forward to receiving our first Paragon unit so we can commence medical waste treatment operations on behalf of the U.S. joint venture entity. To facilitate our mutual efforts, we will open an office in the Denver area and work closely with SEER and Paragon there in Colorado."
About Strategic Environmental & Energy Resources, Inc.
Strategic Environmental & Energy Resources, Inc. (SEER) identifies, secures, and commercializes patented and proprietary environmental clean technologies in several multibillion dollar sectors (including oil & gas, renewable fuels, and all types of waste management, both solid and gaseous) for the purpose of either destroying/minimizing hazardous waste streams more safely and at lower cost than any competitive alternative, and/or processing the waste for use as a renewable fuel for the benefit of the customers and the environment. SEER has three wholly-owned operating subsidiaries: REGS, LLC; Tactical Cleaning Company, LLC; MV Technologies, LLC; and two majority-owned subsidiaries: Paragon Waste Solutions, LLC; and ReaCH4biogas ("Reach").
For more information about the Company visit: www.seer-corp.com
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of various provisions of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates," and other terms with similar meaning. Although the company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Such forward-looking statements should not be construed as fact. Statements in this press release regarding the cost effectiveness, impact and ability of the Company's products to handle the future needs of customers are forward-looking statements. The information contained in such statements is beyond the ability of the Company to control, and in many cases the Company cannot predict what factors would cause results to differ materially from those indicated in such statements. All forward-looking statements in the press release are expressly qualified by these cautionary statements and by reference to the underlying assumptions.
Contacts:
Strategic Environmental & Energy Resources (SEER)
J. John Combs III
Chief Executive Officer
720-460-3522
Darrow Associates, Inc.
Peter Seltzberg
Managing Director
516-510-8768
pseltzberg@darrowir.com
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SOURCE Strategic Environmental & Energy Resources, Inc.
Released February 24, 2015