Alter NRG Announces Strategic Direction Changes
Sep 14, 2011
OTC Disclosure News Service
Calgary, ALB, Canada –
Calgary, Alberta – September 14, 2011 – The Board of Directors at Alter NRG Corp. (“Alter NRG” or the “Company“) is pleased to announce the following changes at the Company:
- The Chairman of the Board has resigned effective immediately;
- An Executive Chairman has been named;
- The Company has named a lead Director;
- The CEO has resigned effective January 1, 2012 and an executive search has commenced;
- The Board has formed a Project Committee to enhance its infrastructure sales efforts;
- The Company will be focused on its plasma gasification business;
- The Company will focus on its Balance Sheet with the recent strategic process rendering a stronger Balance Sheet; and
- The Company has concluded its strategic process.
A more aggressive sales and marketing strategy of an infrastructure technology requires changes to the leadership team. Mark Montemurro has resigned as CEO effective on or before January 1, 2012 and Michael Heier has resigned as Chairman effective immediately. Both individuals will remain as directors. Kevin Bolin has been named Executive Chairman, Joe Schwager will lead a newly formed Project Committee to focus the efforts of the team on the best possible revenue generating opportunities, and Nancy Laird will assume the role of Lead Director. The Board of Directors has initiated a search for a CEO replacement that has experience in both the capital markets as well as international sales of large infrastructure technology.
Kevin Bolin, the newly appointed Executive Chairman, has extensive background in the waste to energy industry and will act to bridge the leadership transition as well as bring his network and direct experience in the waste industry. Kevin was recently the CEO and continues to be on the board of directors of EnerTech Environmental, Inc. a waste sludge treatment processing technology which developed large infrastructure projects utilizing its technology. The Company was able to build its first plant through a successful project financing which led to significant recurring revenues, as well as generate international revenues through partnering and licensing.
Mr. Bolin, comments that “On behalf of the Board of Directors I would like to thank Mr. Montemurro and Mr. Heier for their valuable efforts in advancing the Westinghouse Plasma Technology to its position as a clear industry leader and an excellent platform by which to grow. Going forward, I am excited to be taking a broader leadership role with a clear focus on improving the balance sheet and driving the bottom line performance of Alter NRG.”
Going forward Alter NRG will be a plasma gasification company and will focus on sales and marketing of the Westinghouse Plasma Technology through: (i) recurring revenues from project ownership; (ii) licensing; and (iii) technology equipment sales. Previously, management was heavily focused on product improvements, and supporting key customers in their development efforts with limited external sales and marketing. These efforts did achieve a good platform by which to deploy a more sales and marketing focused strategy as evidenced by an expected major sale to Air Products, a Fortune 500 Company as well as facilities constructed in India, and others under construction in China – a total of 8 commercial facilities built or being built.
CleanEnergy, the Canadian commercial geoexchange division, will continue operations with a more modest growth profile and a tightened business focus so as to ensure the business is cash flow positive. Towards this end, cost and staff reductions have already been made. Alter NRG will continue to assess this business unit but remains focused on the advancement of Westinghouse Plasma as the core technology and strategic focus.
Kevin Bolin, the newly appointed Executive Chairman, comments “The proceeds from the pending sale of Fox Creek combined with our existing working capital, should provide the Company with the required funds to continue executing its corporate strategy.” After proceeds from Fox Creek, working capital is projected to be between $10 to $11 million at the end of Q3.
“With increased sales activity we believe we have a strong platform in the plasma gasification space and the shareholders are best served by continuing to move forward with our industry leading Westinghouse Plasma technology. We continue to achieve significant milestones as we move closer to cash flow positive and see the technology further commercialized. However, we shall always be mindful that a strong balance sheet is required to move forward.”
During the strategic process with Robert W. Baird as senior advisor and Thomas Lloyd as co-advisor, the Board of Directors determined, given the status of its commercial efforts, the best value for shareholders was to continue operations with modification to: (i) the Board; (ii) the management team; and (iii) the strategy going forward. Strategy modifications will build on the platform that the Company has already built – in particular, with the (i) expected gasifier equipment sale in Q4 of 2011 to Air Products on the Tees Valley Project which Air Products released on August 11, 2011 that the Project received regulatory approval and that they “hope to build up to five advanced gasification plants in the UK in the coming years”; (ii) with the sale of plasma torches for $1.9 million announced on April 28th, 2011; (iii) the 2 facilities under construction in China, (iv) 5 permitted projects in North America and Europe, and (v.) a maturing pipeline of projects in various stages with some having negotiated equity ownership options which enhance recurring revenues. Accordingly, the process has now been formally discontinued although management will continue advancing business negotiations with several companies related to licensing and other business opportunities.
ABOUT ALTER NRG
Alter NRG is pursuing alternative energy solutions to meet the growing demand for environmentally responsible and economically viable energy in world markets. Alter NRG’s primary objective is to further commercialize the Westinghouse Plasma Gasification Technology, through its wholly owned subsidiary, to provide renewable and clean energy solutions from a wide variety of feedstocks, and provide a wide variety of energy outputs – including liquid fuels like ethanol and diesel, electrical power, and syngas.
For additional information please contact:
Mark Montemurro, interim Chief Executive Officer
(403) 806-3877 email@example.com
Daniel Hay, Chief Financial Officer
(403) 214-4235 firstname.lastname@example.org
Kevin Bolin, Executive Chairman
(678) 296-2851 email@example.com
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this
This news release does not constitute an offer to sell Alter NRG securities or the solicitation of an offer to buy Alter NRG securities, nor is there to be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Advisory Respecting Forward-Looking Statements:
This news release contains certain “forward-looking information and statements” within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “confident”, “might” and similar expressions are intended to identify forward-looking information or statements. In particular, this new release contains forward looking statements pertaining to: the anticipated closing of the sale of the Fox Creek coal assets, the sufficiency of cash flows and other capital to advance the Company’s business plans; the continued advancement of the Air Products’ projects; the timing of sales; industry trends; the Company’s reputation and market position within the industries in which it operates and the Company’s strategy and competitive advantages. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.
The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements reflect management’s current beliefs and assumptions, based on information currently available to management. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, many of which are beyond the control of the Company. Among the material factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the failure to close the sale of the Fox Creek coal assets; Air Products’ determination to not advance the above projects or utilize the WPC Technology in its projects; changes in government regulation, including changes to environmental regulations; the effects of competition; the dependence on senior management and key personnel; and fluctuations in currency exchange rates and interest rates, as well as those factors discussed in or referred to under the heading “Risk Factors” in the Company’s Annual Information Form dated March 29, 2011 available at www.sedar.com. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.
The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.
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