Totally Green Receives $5 Million Investment and $15 Million Credit Line From Strategic Partner to Fund New Growth Strategy
13 Agosto 2012 - 2:31PM
Marketwired
Totally Green, Inc. (the "Company" or
"Totally Green") (PINKSHEETS: TLGN), a pioneer in organic food
processing systems and compostable packaging alternatives, has
partnered with Toronto-based York Plains Investment Corp. ("York
Plains") for a comprehensive program that involves both financing
and a new marketing model for Totally Green's ORCA Green™ Machine.
York Plains has agreed to provide $5 million of equity financing
for a 50% interest in the Company. The proceeds will be used to pay
down the Company's existing line of credit, and fund the general,
administrative and working capital expenditures required to support
the Company's growth objectives. York Plains has also agreed to
provide up to $15 million in equipment financing for the roll out
of the Company's new service program.
In addition to the funding, the principals of York Plains bring
to Totally Green extensive experience in financing and building
businesses that are strongly in line with Totally Green's product
offerings.
"The principals of York Plains -- Mark Silver, Shawn Dym and
Jason Drummond -- have specialized in growing early stage
businesses with remarkable success over the last 15 years," noted
Rob Phillips, CEO of Totally Green. "Assisting in management and
offering direction, they and their team have taken
consumer-oriented companies similar to ours -- such as Direct
Energy, Universal Energy and National Home Services -- from little
or no sales to revenues of as much as $1 billion. The rate of
growth of many of their ventures has been dramatic, and their
largest success, Direct Energy, sold for nearly $1 billion. All
together, they are an ideal partner to help take our commercial
roll-out of our ORCA Green Machine to the next level."
Totally Green's ORCA Green Machine digests up to 2,400 pounds of
food waste daily, turning it into a nutrient-rich liquid similar to
'compost tea.' The ORCA provides commercial kitchens and food
processing facilities with an economical and
environmentally-friendly alternative to carting waste to a
landfill.
Together, the partners have already introduced and tested a new
North American business service model that involves placing ORCA
machines under service contracts, rather than outright sale. As
part of the new pilot program, Totally Green installs an ORCA
machine at no up-front cost to the client and provides service
throughout the contract term. This significantly reduces and in
some cases replaces waste hauling costs for the client while
generating a recurring revenue stream for Totally Green.
"Our partnership with Totally Green allows us to leverage our
experience and existing strong ties to the commercial services
business," said Shawn Dym, managing director at York Plains. "This
includes support for Totally Green's transition from a sales to a
service model, which we are confident will be highly successful
given similar programs we advanced with past business ventures and
the successful pilot of the ORCA Green machine in Toronto."
Nate Baker, Totally Green's president, commented, "We believe
that marketing the ORCA Technology under our new service business
model will rapidly expand our footprint of ORCA machines and will
substantially enhance our recurring revenue stream and
profitability."
About York Plains Investment Corp. York
Plains Investment Corp. is a private equity firm focused on
investing in growth-stage private and public equities. The
principals have helped advance direct sales and service business
models in the energy and clean tech sector that over the past 15
years have engaged more than 3 million retail customers and 300,000
clients in the commercial sector.
Shawn Dym Managing Director, York Plains
Investment Corp. Shawn Dym currently serves as managing
director of York Plains. He has been involved in the energy
industry for more than 10 years in various operational and
corporate development roles. Dym was a co-founder of National Home
Services (NHS) and served as chief operating officer from 2008 to
2011. During that time NHS grew to more than $300 million in
contracted revenue with 100,000+ customers. He graduated from York
University and holds an M.B.A. from Harvard Business School.
Jason Drummond Managing Director, York Plains
Investment Corp. Jason Drummond currently serves as managing
director of York Plains. He is also the founder and president of
DGC Investments, a private investment company with a focus on oil
and gas production and processing, agriculture, alternative fuels
and the aircraft chartering industry among others. DGC's largest
holding was the build-up of an oil and gas exploration and
production company that grew from a small acquisition to a
substantial gain, culminating in a sale to a publicly traded energy
company. Drummond holds a Bachelor of Business Administration
degree from the University of Regina. He also serves on the board
of directors of both Villanova Oil Corp. and Villanova 4 Oil
Corp.
Mark Silver President - National Home
Services Mark Silver has been involved in the energy business
for approximately 20 years and the real estate business for more
than 30 years. He co-founded Direct Energy Marketing and grew the
company to more than $1.3 billion in revenues before selling to
Centrica PLC (aka British Gas) in 2000. Silver has made significant
real estate investments in both development stage and income
producing properties in the residential, commercial and industrial
sectors during his 30 year career. Over the last 15 years, these
investments have been made through his company, Optus Capital
Corporation. Today, Optus and related companies own and manage more
than 1 million square feet of commercial and industrial space, and
have interests in 4,000+ acres of developable lands in and around
the greater Toronto area. Silver was a founding partner and chief
executive officer of Universal Energy, which was sold in 2009 to
Just Energy. Silver currently serves as president of National Home
Services (NHS). NHS provides home services, including water heater
rentals, to 150,000+ Ontario consumers.
About Totally Green Totally Green, Inc.
develops, manufactures, and markets the company's ORCA Green™
Machine and markets the Ingeo™ Green Bottle Spring Water. The ORCA
(Organic Refuse Conversion Alternative) machine allows for rapid
composting of most organic material in institutional and commercial
end-user applications, after which the liquid compost is either
returned to the soil as nourishment or disposed of through the
ordinary sewer system. The machine creates meaningful cost savings
for customers while diverting food waste from landfills and
reducing methane gas production. Both products offer businesses and
consumers innovative and affordable solutions for food &
beverage by-product disposal. For more information, please visit
www.totallygreen.com.
Important Cautions Regarding Forward-Looking
Statements This press release contains "forward-looking
statements." Forward-looking statements are statements concerning
plans, objectives, goals, strategies, expectations, intentions,
projections, developments, future events, or performance,
underlying (expressed or implied) assumptions and other statements
that are other than historical facts. These forward-looking
statements are only predictions, and are subject to risks and
uncertainties beyond the Company's control. No assurances can be
given that such predictions will prove correct. Actual events or
results may differ materially. Forward-looking statements should be
read in light of the cautionary statements and risks that include,
but are not limited to, the risks associated with a small company,
our comparatively limited financial resources, the uncertainty of
market trends, the competition faced from other current and future
technologies and the uncertainties of competitive pressures we
face. These or other risks could cause actual results to differ
materially from the future results indicated or implied in such
forward-looking statements. We undertake no obligation to update or
revise such statements.
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Company Contact: Nate Baker President & Interim CFO
Totally Green, Inc. Tel 918-619-9700 Investor Relations
Contact: Liolios Group, Inc. Scott Liolios or Chris Tyson Tel
949-574-3860
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