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VitriSeal Announces Two Acquisitions

Published on 2002-03-27. Author : SpecialChem

VitriSeal Inc. Thursday announced that it has entered into a letter of intent with Thermoflow Corp. and Liquitek Corp., for the acquisition of all of the shares of stock of both Thermoflow and Liquitek.

The terms of the letter of intent provide for the issuance of 10,060,000 shares of VitriSeal's common stock for all of the shares of Thermoflow and six million shares of VitriSeal's common stock for all of the shares of Liquitek.

Thermoflow owns and operates a proprietary, antifreeze recycling facility in Las Vegas, with a three million gallon per year capacity. The unique Thermoflow technology receives waste antifreeze and produces fully reformulated antifreeze indistinguishable from antifreeze made from virgin materials. The process is able to recover 100 percent of the waste materials for reuse.

Thermoflow was recently awarded a U.S. General Services Administration contract to receive waste antifreeze and provide recycled, reformulated antifreeze to all U.S. federal government agencies.

The Thermoflow technology is capable of economically treating/recycling many other contaminated liquids, including wastewater.

Thermoflow has licensed the technology to Liquitek under an exclusive license agreement. Liquitek refined the Thermoflow technology and has licensed and leased an oily wastewater treatment system to Hawaii's largest recycler. Liquitek, in conjunction with Thermoflow, developed a proprietary system for recycling car wash wastewater and installed its first system in Hiroshima, Japan.

Liquitek has also secured a 20,000 square foot facility in Oak Ridge, TN, under an 18-year lease agreement. The Tennessee facility will be used to build a three to 6 million-gallon antifreeze recycling operation, similar to Thermoflow's Las Vegas operation, by year-end 2000.

Liquitek's business plan includes designing and manufacturing advanced wastewater treatment systems for the $500 billion global water market, as well as systems for profitably recycling other contaminated liquids, such as antifreeze, for domestic and international customers.

Pursuant to the terms of the letter of intent, VitriSeal advanced Thermoflow $300,000 and Liquitek $200,000 and is obligated to raise an additional $1.3 million of working capital for Thermoflow and $550,000 for Liquitek as a condition to completing the acquisitions.

VitriSeal intends to fund the working capital requirements for Thermoflow and Liquitek through the sale of VitriSeal's common stock in a private placement. VitriSeal raised the first $500,000 that was advanced to Thermoflow and Liquitek through the sale of 285,715 shares of its common stock to Culley W. Davis, the chairman and CEO of VitriSeal.

VitriSeal Inc. owns the rights for a series of patented processes and proprietary know-how called VitriSeal. The process is based on inorganic silicate chemistry that makes superior, hard, bright, clear, corrosion-protective coatings on metal surfaces at a fraction of the cost of other clear coatings.

VitriSeal is continuing its efforts to transfer its successful laboratory results to a pilot line with a large, independent, after-market wheel manufacturer. The pilot line is being developed in accordance with a previously announced license agreement with the wheel manufacturer.


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