E-Waste Systems Signs Financing Terms for 2TRG
Line of Credit Offer Tied to Closing of Planned Acquisition
LONDON, Jul 24, 2013 (Marketwired via COMTEX) -- E-Waste Systems, Inc. (OTCQB: EWSI) ('EWSI' or the "Company"), an electronic waste management services, technology and reverse logistics company and the first public pure eWaste company, announced today that a financing term sheet has been signed with TCA Global Credit Master Fund ('TCA').
The financing terms with TCA, which are subject to due diligence, final documentation, and the closing of the 2TRG acquisition, would provide a line of credit with an initial $1M commitment, which may subsequently be increased to $5M. It is intended to be secured by the assets of the company. The Term sheet will be filed with the SEC in an 8K this week.
"This financing term sheet with TCA would provide the cash component for our deal with 2TRG and is very timely. We look forward to working with the TCA and 2TRG teams to get the due diligence completed, so we can get the deal closed," said Mr. Martin Nielson, Founder and CEO of E-Waste Systems, Inc.
Commercial due diligence has already been initiated and legal documents have been circulated. TCA's financial due diligence has begun this week, with the expectation that the transaction can be closed within the current quarter.
"We are excited to be at this stage now with EWSI, and look forward to completing the remaining due diligence and finalizing all the deal documentation," stated Ms. Carol Weinstein, founder of 2TRG. "We have a lot of good opportunities developing and we want this deal to close so we can start acting on them."
In addition to filing the LOI, EWSI will also be filing an information 8K containing an update to its business plan, which will contain a new section outlining the company's financing principles for building its business.
For more information as it happens, follow @EWasteSystemsIn on Twitter and Facebook and on the company's blog at www.ewastesystems.blogspot.com
Industry Expansion The 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, providing a true global e-waste solution. Additional information, including the business plan summary, is available on the Company's website, www.ewastesystems.com .
About TCA TCA Global Credit Master Fund, TCA, is a short duration, absolute return fund specializing in senior secured lending and advisory services to small, mainly listed companies predominately in the U.S., Canada, Western Europe and Australia. TCA's specialist business fills the underserved small-cap lending gap which exists in these leading markets. The TCA team has an unparalled level of domestic and cross-border expertise, long-standing relationships and a history of comprehensive funding innovations. This reflects in its history of successful, completed transactions and high level of repeat business.
About 2TRG 2TRG leads organizations through end-of-life computer and electronics recycling by providing secure data destruction and utilizing environmentally safe and legally compliant disposal methods. 2TRG guarantees that all data storage devices are sanitized and/or destroyed. Our facilities, certifications, and equipment allow clients to be 100% confident that data and electronics will be properly disposed of. Founded in Ohio in 2004 as Technology Recycling Group, the company was renamed 2TRG in 2006. Since then, 2TRG proceeded to invest over $1.2M in leading recycling equipment including CRT Heaven and Shred-Tech systems, expanded into nearly 200,000 square feet of processing space in Ohio and New York and attained ISO 14001, ISO 18001, R2, and eStewards certifications. In 2011, 2TRG was ranked #816 among the Inc., 5000 fastest growing private companies and in 2012 was named a Blue Ash, Ohio, Business of the Year. 2TRG has diverted over 75 million pounds of e-waste from landfills since beginning operations.
