U.S. Microbics’ management team is continually working on their strategic projects to prepare the company for business expansion over the next year. The projects include: financing for a subsidiary doing business in Mexico, acquisition candidate due diligence, Bio-Raptor™ business development, and current contract implementation.
The CEO of U.S. Microbics, Robert Brehm, commented, “In order for us to prepare for the expected increase in future project revenues from the Mexico environmental cleanup company, Environmentaltec International, S.A de C.V. (ETI), operated by our subsidiary, Sub-Surface Waste Management (OTCBB:SSWM), we have worked with our investment bankers to finalize the financial analysis and capital markets valuation model used in the $7MM Structure Financing Information Memorandum for ETI. The valuation model computes a present value of ETI based upon current and pro forma revenue and net income over the fiscal years 2008 to 2010 taking into consideration industry specific market ratios and risk factors. The valuation analysis is used to structure a proposed debt and equity financing transaction to present to investors. After significant due diligence and financial analysis, I am happy to report we are now ready to present the Information Memorandum to private and institutional investors who have an interest in this transaction.”
He continued by commenting on ETI’s business developments in Mexico. The Subsidiary is currently planning the task implementations for the current Puebla contracts and developing staffing requirements for positions in a new office located in Mexico City.
He also stated, “We have previously identified an environmental transportation company as a potential acquisition and we are in the due diligence and strategic planning stage for this company which could provide additional revenues of $10MM plus per year along with financing for its own acquisitions and future growth in the U.S. and possibly Mexico with ETI target projects. We not only have to understand the transportations company’s business, but we also have to plan for its expansion and growth as well as understand the impacts upon our financial statements and shareholder value. We are trying to get this transaction completed before the end of our fiscal year on September 30, but the timing is contingent upon completion of the ETI financing and satisfactory due diligence results.”
In conclusion, he stated the company’s current strategy is to complete the ETI financing, continue the current projects in Mexico, finalize pending contracts and prepare staff to move into the Mexico City office by September 30. After the ETI financing is completed, the company plans to acquire the environmental transportation company and begin 2008 as a banner year.
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