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E-Waste Systems Announces Readiness to Proceed with Next Steps in Strategy
Jun 12, 2012 (03:06 PM EDT)
LONDON, June 12, 2012 /PRNewswire/ -- E-Waste Systems, Inc., (OTC: EWSI), a corporation created to acquire and integrate elements of the electronic waste industry through acquisitions, implementation of business development initiatives and the promotion of Fair Trade e-waste solutions, today reaffirmed its first annual state of the company.
Martin Nielson, CEO of E-Waste Systems, states, "EWSI was created with high expectations, to address the socially responsible need to provide global e-waste solutions which protect the environment and do so in a manner that financially benefits our company's stakeholders and customers. The e-waste industry is ubiquitous and grows substantially every day."
Nielson continues, "Most see this market on a localized or micro basis, but we look towards old cell phones or iPods and see a market on a global scale. The electronics industry knows no national boundaries. The millions of tons of e-waste generated globally represent, on the one hand, dramatic value in the form of recyclable materials, repurposed goods, precious metals and potential new raw materials. On the other hand, if not processed properly, these items will have a massive, negative effect on the Earth and will be a waste of precious resources."
EWSI's core strategy is designed to address this mix of opportunity for reward and environmental responsibility by consolidating key elements of this highly fragmented e-waste industry. The company seeks selective acquisitions and partnerships led by executives whose teams unite complementary services and necessary geographies together with an excellent customer base. EWSI expects to leverage these companies by implementing new business development initiatives and embracing Fair-Trade E-Waste recycling principles.
In the 1st quarter of the year 2011, E-Waste Systems, Ltd. was established as a wholly-owned subsidiary of the public company, which was at that time a fully compliant, pristine shell entity. In the 2nd quarter, previous management resigned from the parent company and EWSI's current management began to assume control. The parent company name changed to E-Waste Systems and its new trading symbol became EWSI.
In the 3rd quarter, the company's acquisition program was launched and resulted in EWSI's initial purchase of a young Ohio company, in the 4th quarter. The brief period from acquisition to year end resulted in $125K in sales at 56% gross margin, while the full year showed $575K in sales and was profitable on an operating basis. During the months of December 2011 through March 2012, EWSI largely halted operations to implement new production and accounting systems, to transition the operation to a new location, and to hire new staff. The company also executed a number of smaller financial transactions, including converting previous obligations to equity. In the second quarter, it retained Oracle Capital's cleantech team under the dual roles of M&A Advisor and exclusive Placement Agent.
The losses incurred in its first fiscal year of operation and YTD 2012 are related to the costs associated with the start-up, including the hiring of professional advisors, board members and executives, which are key to implementing EWSI's strategy. The appointments include: Steve Hollinshead (CFO), Susan Johnson (Secretary, Treasurer and VP Admin); Paul Haft (COO, EWSO and VP Group Operations); Peter Munday, (NED); Larry Magor, (NED and Chair of the Comp. Committee and Nominating Committees); lawyers, auditors and other advisors in the U.K. and U.S.; and executive consultants Rick Fine and Ghassan Saade. All of these individuals possess significant industry experiences and you can read more about each of their backgrounds on the website.
By completing the Ohio acquisition, EWSI converted from shell to trading status and attained DTC/DWAC eligibility. EWSI also agreed to buy out the earnout payment of the sellers of the Ohio acquisition. With the recent appointment of Oracle Capital the basis for building the business is in tact and management looks forward to bringing in the capital resources necessary to implement the next key elements of the strategy.
About E-Waste Systems, Inc.:
Headquartered in London, where e-waste regulations are the most stringent in the world, EWSI aims to be a leading provider of e-waste related services in key jurisdictions globally. Blumberg Associates estimates the e-waste sector at a $55B industry annually, as legislation increasingly mandates that e-waste can no longer be landfilled. OEM's, retailers and users are increasingly responsible for end-of-life management of e-waste, while Corporate Social Responsibility demands highly compliant, professional solution providers. The collection and recovery industry is also highly fragmented and EWSI considers these elements as an attractive environment for its buy, build and upgrade strategy. Visit www.ewastesystems.com to learn more.
Herein, regarding EWSI's future results or actions, the words "anticipate," "believe," "estimate," "may," "intend," "expect," etc. are 'forward-looking statements' within the Private Securities Litigation Reform Act of 1995, the Securities Act of 1933 and the Securities Exchange Act of 1934 and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially, including, but not limited to, future capital needs, changes, delays, or market acceptance.
SOURCE E-Waste Systems, Inc.