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Scorpex, Inc. (SRPX) released news after the closing bell on Wednesday!
Here are a few highlights from the news release:
Headline: Scorpex Signs Multi-Million Dollar Waste Supply Contract
Scorpex, Inc. (Pink Sheets: SRPX) (the "Company"), an emerging leader of industrial, hazardous and toxic waste disposal services in the Baja Mexico/California region, has signed a waste supply contract with AISA, a Mexican waste transportation company with headquarters located in Tijuana, Mexico.
The agreement states that AISA must provide 300 tons of hazardous and toxic waste at an average price per ton of $1,200 USD.
Gross revenues from this agreement could produce up to $360,000 USD gross revenue per day and $131.4 mln USD gross revenue per year from this contact with AISA alone.
Chief Executive Officer Joseph Caywood stated, "We are very pleased with the final version of this contract we signed today. Our management team decided to reduce AISA's waste supply commitment so that we can contract with many other international and regional suppliers that need our services.
To read the press release in its entirety, visit: http://finance.yahoo.com/news/Scorpex-Signs-Multi-Million-bw-2478438382.html?x=0
For those of you that missed our initial profile, SRPX is focused on the Baja Mexico/California region, where it plans to own and operate a waste disposal and recycling plant capable of storing and disposing all types of waste, including those classified as industrial, toxic, and hazardous.
Earlier this year, SRPX announced that it entered into a "major agreement" with International Environmental Technologies, Inc. (IET) for the acquisition and installation of waste gasification/thermal oxidation equipment as well as a license to use the technology, a July 27 press release stated.
IET's technology is capable of processing municipal waste, medical waste and hazardous waste simultaneously without presorting for maximum efficiency. The oxygen starved system virtually eliminates noise and noxious odors when operating while reducing waste volume by 95 percent. The design of the system also reduces breeding sites for scavengers, rodents, insects and disease that are sometimes found in other processes, according to the July 27 press release.
"Our progress over the last ninety days has been nothing short of remarkable," CEO says
Based on recent news, SRPX is making strides toward achieving its goals.
In late August SRPX announced that it accomplished several key 2011 business objectives "far ahead of schedule" including:
Signing a $30 mln equipment contract with International Environmental Technologies, Inc. ("IET") for the acquisition and installation of waste gasification/thermal oxidation equipment as well as a license to use the technology.
Securing financial commitments for up to $35 million of non-dilutive financing; contingent on the issuance of necessary permits.
Receiving its Use of Soil Permit from the Mexican federal government following the submission of numerous studies and compliance with every request.
Engaging an accounting group to prepare its financials for a formal audit.
Appointing an interim Chief Financial Officer to the management team and made two additions to its Board of Directors.
"Our progress over the last ninety days has been nothing short of remarkable," said SRPX's CEO Joseph Caywood in an August 29 press release. "Even though we are only in the third quarter, our Company has accomplished nearly all business objectives that were set for completion this year. This is a testament not only to the competence of our team, but also the exhaustive groundwork that has been laid over the years. Our excitement continues to build as we make great strides forward in the execution of our business strategy."
Huge potential and a "distinct competitive advantage"
Mexico is currently limited to shipping waste to France or Holland, trucking back to the United States, or trucking over vast distances to Monterrey Mexico, SRPX's Web site states. Shipping alone costs companies, government, and Maquiladoras hundreds of millions of dollars.
What gives SRPX an edge is the gasification process.
According to the company's Web site, "no other company in Mexico presently processes and disposes of waste through the gasification process, often referred to as thermal oxidation."
This gives SRPX "a distinct competitive advantage and makes our service attractive to governmental, commercial and residential target markets," SRPX's Web site states.
Due to the NAFTA Agreement between the United States and Mexico, SRPX is able to bring waste in from the United States. Laws and regulations indicate toxic and hazardous waste may be brought across borders to be treated and managed properly, but anything harmful left over must be returned to the country of origin. After SRPX's gasification process, "there is nothing harmful left to ship back with the leftover toxic waste being reduced to ash," according to the company's Web site.
A bright future?
Earlier this month, SRPX announced that it increased its equipment contract with IET to $90 million for the acquisition and installation of waste gasification/thermal oxidation equipment and licenses. According to a December 9 press release, SRPX is anticipating a hazardous and toxic waste supply that will exceed the capacity of its pre-existing contract with IET.
"IET has continued to be a very strong partner in satisfying our debt equipment financing needs," Caywood said in a December 9 press release. "Increasing the size of our initial equipment contract allows Scorpex the ability to start stronger with more sources of waste supplies."
SRPX's latest news release is another example of the steps the company is taking toward achieving its goals.
One of the key points to note in the December 21 press release was the fact that SRPX reduced AISA's initial commitment of 800 tons of waste per day to 300 tons per day to allow for other suppliers to use its initial waste disposal site located near Ensenada, Mexico.
"We are very pleased with the final version of this contract we signed today," Caywood said in the December 21 press release. "Our management team decided to reduce AISA's waste supply commitment so that we can contract with many other international and regional suppliers that need our services. We believe that diversifying our waste supply with many providers will create a stronger business and avoid the potential of downtime in the event that waste supplies are delayed from a single provider."
Will 2012 be another year of progress for SRPX?
To learn more about Scorpex, Inc.'s partnership, opportunity, and management team, visit: http://www.scorpex.com/
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