$EWSI UP 94.92% on todays news:
LONDON, May 7, 2013 /PRNewswire via COMTEX/ -- E-Waste Systems, Inc. (OTCQB: EWSI) (the "Company"), an electronic waste management and reverse logistics company, announced that it has entered into a binding agreement to acquire State of California registered e-Waste Collector and mobile computing specialist, Surf Investments Ltd. ('Surf') of Irvine, CA.
The acquisition is expected to add $1 million in annual revenues. Surf, a registered collector of eWaste in the State of California, is recognized as a warranty authorized center for repair, returns, and resale by major OEM manufacturers including Hewlett Packard, Toshiba, Lenovo, Compaq and Fujitsu.
"This acquisition extends our eWaste brand and sets our West Coast operating foundation," stated Martin Nielson, CEO of EWSI. "The California market is a top priority for EWSI and this acquisition will push our eWaste brand deeper and the local presence allows greater efficiencies for our revenue acceleration initiative," added Mr. Nielson.
Los Angeles and the State of California is an important region in the eWaste recycling industry. The city has adopted a 75% waste diversion target by 2013 and the long-term goal of zero waste by 2025. Furthermore, studies have shown that the city of Los Angeles alone generates nearly 10 million tons of solid waste annually and it also has one of the highest recycling rates in the nation.
Discarded electronics are the fastest growing segment of the municipal waste stream and are regulated under California's Electronic Waste Recycling Act of 2003, the first law of its kind in the nation. And, according to the Los Angeles Economic Development Corporation, Los Angeles County has an economic output of $500 billion and is the largest manufacturing center in the nation based on employment.
"This acquisition is a milestone for EWSI due to its strategic geographical position and the solid credentials and licenses it owns. It brings benefits immediately and complements our branding, technology and revenue acceleration core focuses," stated Martin Nielson, EWSI's CEO.
The transaction involves acquiring all of the shares of Surf. Upon completion of the transaction, Surf, which presently does business as 'CPU', will transition to operate under the eWaste Systems brand name from its Irvine, California location.
All employees will be retained and EWSI intends to use the Irvine unit as a strategic operational hub for Southern California. Julie Peterson Mindiola, founder of the company, will stay on in an executive capacity. Kimberly Crew, the majority shareholder and president of Surf who is based in the Philadelphia area, will join the EWSI Advisory Board. She is considered one of the leading entrepreneurial executives in the Eastern US, having won prestigious awards such as Philadelphia Business Journal's "Women of Distinction Award", and Business Journal of Pennsylvania's "Pennsylvania's Best 50 Women in Business".
"I am looking forward to help EWSI achieve its goals and to promote the cause of highly compliant end of life solutions. We both have a lot we can achieve together," said Kimberly Crew. Ms. Crew will be joining EWSI's advisory board while still managing three other ventures, including Lighthouse Ventures, an investment and advisory firm.
Julie Peterson added, "We see a significant opportunity to grow our business with the support of the EWSI team under the eWaste System brand." Julie Peterson, who founded Surf in 1979, has been actively managing day-to-day operations of the company. She led the initiative that registered the company under California's electronic waste legislation and will continue to play a key role in the operations post-closing.
"We are delighted to be teaming up with Kimberly and Julie in this transaction," stated Nielson. "The business they have built over the years has become a trusted supplier to its customer base. We intend to leverage that and their accreditation with the State of California to help achieve our plans. This acquisition perfectly complements elements of our announced goals for 2013 of growing our global brand, expanding our technologies, and accelerating our revenues." Said Mr. Nielson, CEO of EWSI.
The binding terms of the transaction have been filed with the SEC on Form 8-K. Definitive agreements have already been tendered, due diligence has already been largely completed and, pending board approval, the transaction is expected to close within the month of May.
Industry ExpansionThe e-waste and reverse logistics market has become a $100B+ annual business (Source: Blumberg Associates), excluding much of the resale of still usable goods that flood the marketplace as new updates in software and hardware are released. Furthermore, as environmental legislation and policies sets more stringent requirements for the disposal of these items, many analysts and practitioners expect e-waste to grow faster than any other waste stream over the next 5 years. The benefits of e-waste management and recycling are many, including conservation of natural resources, creation of new jobs, prevention of environmental contamination by toxic chemicals, and reduction of energy requirements.
About E-Waste Systems, Inc.E-Waste Systems, Inc. is the sole pure play public company in the emerging waste electrical and electronics equipment ("WEEE") industry. EWSI targets companies facing regulatory or other mandates for handling e-waste. EWSI operates and assists its large geographical network of affiliates, applying best practices in professional management, offering state-of-the-art engineering, and providing a truly global e-waste solution. Additional information, including the business plan summary, is available on the Company's website: www.ewastesystems.com .
E-Waste Systems Acquires California e-Waste Firm
Solidifies footprint in West Coast Market
