LITTLE ROCK, Ark., Nov. 23 /PRNewswire-FirstCall/ -- ThermoEnergy Corporation (OTC Pink Sheets: TMEN) today announced that the Company completed the second phase of its recapitalization. The second phase of the plan raised from its investors $1.4 million in cash and retired $5.9 million of outstanding debt and interest in exchange for 3.0 million shares of Series B Convertible Preferred Stock and 5.6 million common stock purchase warrants. The Series B Convertible Preferred Stock were issued at $2.40 per share and are convertible, at any time at the discretion of the holder, into 10 shares of common stock. The warrants have a term of five years and an exercise price of $0.50 per share. Both instruments include conventional weighted average anti-dilution provisions. All parties to this second tranche of our recapitalization provided the Company with complete and general releases to all claims in the past and present, whether known or unknown.
The third phase of our four-phased recapitalization plan would raise another $1.8 million of new cash in exchange for Series B Convertible Preferred Stock and common stock purchase warrants. This phase of the plan will be completed in conjunction with the signing of a contract for an Ammonia Recovery Project with the City of New York. The Company expects the contract to be signed in the very near future.
On October 15th, 2009, Mr. David Gelbaum, Mr. David Anthony, and Mr. Joseph Bartlett of The Quercus Trust joined the Company's Board of Directors. Mr. Gelbaum and Mr. Anthony also joined the board of the Babcock-Thermo Carbon Capture LLC.
ThermoEnergy, through its subsidiary, ThermoEnergy Power Systems, LLC, recently formed a Limited Liability Company with Babcock Power, Inc. called Babcock-Thermo Carbon Capture, LLC, (BTCC) to finalize the development and commercialization of the Company's zero air emission, carbon capture fossil fuel power plant design. The joint venture is currently designing a 600 Mw reference plant which will be used to design, build and operate a 40 Mw demonstration plant at a host utility site.
Finally, Mr. Ted Klowan, Jr., CPA, joined the Company as Executive Vice President, Chief Financial Officer, and Treasurer this month. Mr. Arthur S. Reynolds, who served as interim CFO since August 2009 will remain a member of our Board of Directors.
Mr. Dennis C. Cossey, the Chairman and Chief Executive Officer of ThermoEnergy said, "We are grateful for the confidence and continuing support of our major shareholders, which has led to the completion of the second phase of our recapitalization plan. We are also pleased to announce the addition of Mr. Gelbaum, Mr. Anthony, and Mr. Bartlett to our Board and the Board of the BTCC along with the addition of Mr. Klowan as our Chief Financial Officer. We expect these changes in management of the Company will strengthen the Company's ability to achieve it's objectives and drive the Company to profitability."
About ThermoEnergy:
Founded in 1988, ThermoEnergy is a diversified technologies company engaged in the worldwide commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power generation technologies. The wastewater treatment technologies are consolidated in a wholly-owned subsidiary, CASTion Corporation ("CASTion"), a fast growing developer and manufacturer of innovative wastewater treatment and recovery systems for industrial and municipal clients, with large-scale systems operating in the U.S., Mexico, Canada and Japan. The systems are unique because they meet environmental regulations while providing a rapid return on investment by recovering and reusing expensive feedstocks, reducing contaminated wastewater discharge and reusing wastewater in process operations. CASTion's wastewater treatment systems have application in aerospace, food processing, microelectronics, metal finishing, refineries, pulp & paper, heavy manufacturing and municipal wastewater. All systems are assembled and shipped from a 20,000 square foot fabrication facility in Worcester, Massachusetts. The Company, headquartered in Little Rock, Arkansas, has additional offices in Jacksonville, Florida and New York, NY. Additional information on the Company and its technologies can be found on its website at http://www.thermoenergy.com/, or http://www.castion.com/ for specific information on its wastewater treatment systems.
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ThermoEnergy Corporation
CONTACT: Dennis Cossey, +1-501-376-6477
Web Site: http://www.thermoenergy.com/
