LOI Fortifies Balance Sheet With $2.4 Million in Immediate New Capital Plus $1.1 Million Guaranteed and an Additional $1.5 Million in Performance Bonus Awards
GOLDEN, CO -- (Marketwired) -- 06/07/17 -- Strategic Environmental & Energy Resources, Inc. (SEER) (OTCQB: SENR), a provider of environmental, renewable fuels and industrial waste stream management services, has entered into a letter of intent ("LOI") with New Seneca Partners for the sale of SEER's wholly owned subsidiary, Tactical Cleaning Company ("Tactical") to an affiliate of New Seneca Partners for a total possible purchase price of $5.0 million. The first $2.4 million of the purchase price will be paid at closing of the transaction; $1.1 million is guaranteed to be paid over three years and the balance of $1.5 million is also payable over three years, subject to performance by Tactical. Completion of the transaction is expected to occur within 35 days, subject to the negotiation of definitive agreements and other customary conditions.
"This transaction is an important step for SEER on several levels and our shareholders are now being financially rewarded for us taking the time and conducting the required due diligence to find the right buyer and negotiate the right terms," said John Combs, SEER's President and CEO. "Additionally, the new capital will enhance SEER's financial footing and provide the working capital to accelerate growth of our high-margin technology divisions. Initially, the proceeds will be used to clean up our balance sheet by extinguishing legacy notes and obligations. We are confident these initiatives will improve our financial profile with the investment community and improve our credit quality with future lenders. On an operational level going forward, the sale of the labor-intensive division will stream line overall operations, reduce insurance costs and SG&A overhead, as well as free up administrative capacity."
"This was an important move for the Company and consistent with our new strategic direction," said Don Moorehead, SEER's new Chairman. "The consolidation of operations and new capital will enable us to more effectively accomplish our near-term expansion goals including the roll out of Paragon's medical waste destruction technology and the increase of MV's market share in the landfill gas sector," concluded Moorehead.
About Strategic Environmental & Energy Resources, Inc.
Strategic Environmental & Energy Resources, Inc. (SEER) (OTCQB: SENR), 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 four wholly-owned operating subsidiaries: REGS, LLC; Tactical Cleaning Company, LLC; MV Technologies, LLC and SEER Environmental Materials, LLC; and two majority-owned subsidiaries: Paragon Waste Solutions, LLC; and ReaCH4biogas ("Reach"). For more information about the Company visit: www.seer-corp.com.
Forward Looking Statements
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 future performance or fiscal projections, 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.
Source: Strategic Environmental & Energy Resources, Inc.
Released June 7, 2017