Veridium Acquires GreenShift Industrial Design Corp and Tornado Trash Corp; Acquisitions Bring Portfolio of Innovative Green Technologies
NEW YORK--(BUSINESS WIRE)--Jan. 23, 2006--
Veridium Corporation (OTC Bulletin Board: VRDM) today announced its acquisition of 100% of the stock of GreenShift Industrial Design Corporation ("GIDC") and Tornado Trash Corporation ("TTC") from Veridium's majority shareholder, GreenShift Corporation (OTC Bulletin Board: GSHF).
According to the acquisition agreement, GreenShift will receive Veridium equity equal to about 10% of the total outstanding share in Veridium in return for the sale of GIDC and TTC. The two acquisitions bring GIDC's veteran team of industrial process engineers and portfolio of innovative green technologies to Veridium.
Veridium had previously announced its plans to transform and revitalize its industrial waste recycling business. Historically, Veridium's recycling business was based on picking-up industrial wastes from its clients and distributing those wastes to Veridium's former centralized facility for recycling with its technologies. Moving forward, Veridium intends to reverse this and bring its technologies to the sources of industrial wastes in ways that enhance manufacturing efficiencies, improve resource utilization and minimize waste.
Industrial Arbitrage
"Veridium's new model is not based on growth through acquisition," said Kevin Kreisler, Veridium's chairman and chief executive officer. "Instead, we intend to focus purely on organic growth, and we expect to generate revenues in three ways: annuities, joint ventures, and industrial design services."
On the annuities front, Veridium intends to provide targeted clients with turn-key processing systems based on Veridium's technologies for no up-front cost in return for fixed annuitized charges based on a percentage of the client's ongoing savings.
David Winsness, GIDC's president and chief operational officer, added, "Take Veridium's new proprietary Dissolved Air Flotation ("DAF") sludge processing technology as an example. Our DAF technology enables livestock and poultry processing facilities to reduce the volume of sludge they are shipping and disposing by better than 80%. This translates to reduced costs and increased profitability for the 220 livestock and poultry processing facilities in the U.S., which in turn creates an industrial arbitrage opportunity that Veridium and its shareholders can now participate in."
"Providing our systems for no up front cost sacrifices a decent margin under a standard equipment sales model but it allows us to create these annuitized longer term and higher margin returns," added Winsness. "This in-the-trenches form of proprietary technology transfer is the key to the new Veridium model."
Kreisler concluded: "While we are more interested in taking our technologies to existing industrial operations with inefficiencies we know how to reduce because these mature operations are the highest and best path to pulling cash flows out of our technologies, we will also joint venture with qualified pre-revenue and early stage projects where we will provide our technologies and ongoing engineering, operational, and management services in return for substantial profit participation."
With the completion of the GIDC and TTC acquisitions, Veridium currently holds the rights to more than a dozen proprietary universal processing, water purification, emissions control and waste recycling technologies.
About Veridium Corporation
Veridium Corporation (OTC Bulletin Board: VRDM) is a publicly traded industrial waste recycling company. Veridium's new business model is based on the engineering and marketing of green innovations and processes that enhance manufacturing efficiencies, improve resource utilization and minimize waste. Veridium's mission is to deliver consumer oriented Natural Solutions(TM) based on an array of green technologies and applied engineering expertise that reduce waste at the source and make it easier for people and businesses to recycle and reuse resources. Veridium plans to focus on the continued acquisition, development and marketing of benchmark green technologies and products that accomplish the following key goals:
-- Reduce the volume of waste generated by residential and
commercial consumers;
-- Increase the convenience and decrease the cost of recycling by
residential and commercial consumers; and,
-- Increase the cost-efficiency of processing certain types of
industrial wastes.
Veridium is currently a development stage business but expects to leverage its portfolio of powerful new green technologies to generate revenue starting in 2006 from the provision of customized engineering services to third party clients.
About GreenShift Corporation
GreenShift Corporation (OTC Bulletin Board: GSHF) is a publicly traded business development company (BDC) whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.
BDCs are regulated by the Investment Company Act of 1940 and are essentially publicly traded equity funds where shareholders and financial institutions provide capital in a regulated environment for investment in a pool of long-term, small and middle-market companies through the use of senior debt, mezzanine financing, and equity funding. GreenShift plans to use equity and debt capital to support and drive the value of its existing portfolio of companies and to make investments in a diversified mix of strategically compatible growth stage public and private businesses and technologies. Additional information regarding GreenShift Corporation is available online at www.greenshift.com.
Safe Harbor Statement
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GreenShift Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Source: Veridium Corporation