RIVERBANK,Calif., Feb. 28, 2012 /PRNewswire/ --Green EnviroTech Holdings Corp. (GETH) (Pinksheets: GETH) announced today they have signed a letter of intent (LOI) for the creation of a Joint Venture (JV) between GETH and ACG Consulting, LLC (ACG), a division of ACG Companies of Irvine, California. For more information about ACG, please visit www.acgcompanies.com
The non-binding LOI contemplates that GETH and ACG will enter into a JV agreement forming Limited Liability Companies (LLC) for the purpose of owning and developing Shredder Residue (SR) Recycling Plants in the United States. Each Recycling Plant will be organized as a wholly owned subsidiary of the JV. ACG has specialized expertise in the employment based EB-5 Visa Program administered by the United States Citizenship and Immigration Services ("USCIS") under the Immigration Act of 1990 (http://1.usa.gov/EB5Program). The EB-5 program provides a legal vehicle for raising funds via a securities subscription agreement with foreign nationals which are offered and sold only to persons who are not citizens of the United States and who are physically located outside the United States in reliance upon Regulation S ("Regulation S") under the Securities Act of 1933, as amended (purchasers of securities by foreign investors are not purchasing equity in GETH but rather in an entity created expressly for the EB-5 investors).
The EB-5 Funds are raised from foreign nationals. Once raised, the funds would be loaned to each of the JV's wholly owned subsidiary Recycling Plants. As part of the JV agreement, ACG will provide the capital to the JV for the plant projects, approximately $30 million for each site, and GETH will provide the material, the technology to recycle and convert using the "PlastExtract" process, management experience and all sales of the plant produced crude oil and compounded plastic resin.
Gary De Laurentiis, Chairman and CEO of GETH, said, "The joint venture with ACG will allow the management of GETH to focus on building SR plants with the expertise of ACG's financing through the EB-5 program. We are excited to have such a valued JV partner within the environmental sector. In addition to our LOI with ACG we continue to work with Mosaic Capital, LLC, the company's investment banker, as part of our overall capital raise of $22 million."
"Each plant we build will create over 140 direct US jobs for each 35,000 tons of plastic processed through the plant as well as many more related indirect US jobs. The plants will operate 7 days a week and 24 hours a day with 2 shifts per day. This volume translates into approximately 120,000 barrels of oil and approximately 50 million pounds of compounded plastic resin annually. This project is exactly what the EB-5 program is designed to do, encourage investment in US companies and create much needed US jobs."
"The JV with ACG will fund GETH's second planned plant and all additional plants going forward. With the amount of Shredder Residue that currently ends up in landfills each year being approximately 4 million tons, which equates to 920,000 tons of reusable plastic, we could potentially build 40 of these plants. Working with ACG using the EB-5 program is a perfect vehicle for us to accomplish this. Each plant has the potential to produce approximately $60 million in revenue per year. The companies have identified several locations in the northern Midwest where unemployment is among the highest in the US."
Paul Kirkland, Managing Partner at ACG Companies, stated, "Our focus for projects using the EB-5 Visa program has been in the environmental arena. GETH fits perfectly into that strategy. We are excited to become JV partners and help the company grow over the next several years creating US jobs by bringing foreign investment into the US."
Green EnviroTech Holdings is "CPR" for the US Economy. The company's focus has been to Create new US jobs, Produce alternative energy and Reuse precious natural resources that have been going to landfills while creating shareholder value.
About Green EnviroTech Holdings Corp.
Green EnviroTech Holdings Corp. is a plastics and tires recovery and recycling company which removes contaminants from recovered plastic recaptured from end of life automotive vehicles shredded for their metal. Green EnviroTech Holdings Corp. processes this recovered plastic to produce compounded plastic resin and light sweet crude oil as end products. Its unique patented process significantly reduces the amount of shredder residue going to landfills by up to 40 percent creating considerable cost savings for metal recyclers while also dramatically reducing the volume of materials going to the landfill. The Company has developed long term strategic partnerships that allow it to receive feedstock at near zero cost and has also leveraged its patented technology to ensure guaranteed sale of 100% of its production output thereby creating a sustainable and high margin business model. A valuable by-product of the Green EnviroTech process is commercial grade, sweet crude oil that will also be sold to industry at market prices. For more information please visitwww.greenenvirotech.com.
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SOURCE Green EnviroTech Holdings Corp.