Acquisition Has Annual Gross Revenues of over $30,000,000
SALT LAKE CITY–Mr. Ken Bennett, CEO of GeoBio Energy, Inc., today announced the Company’s entry into a Letter of Intent (“LOI”) to acquire a third generation petroleum fuel distribution company (the “Distributor”) serving customers in Utah, Arizona and Colorado. The “LOI” contemplates GeoBio Energy’s payment for the acquisition with a combination of cash, a note and the assumption of debt of the Distributor.
This is the first target of the GeoBioEnergy roll up strategy for acquiring profitable petroleum distribution companies in the Southwestern United States. Within the next 12 months the Company intends to acquire 3 – 4 additional distributors, each offering positive synergies and combined revenues approximating $150+ million with positive EBITA. The “LOI” requires the parties to enter a definitive agreement following a customary due diligence review period.
Ken Bennett explained, “This marks a major milestone toward completing our first of many planned acquisitions of fuel distribution companies in the Southwestern United States.”
About GeoBio Energy:
Through a vertical integration strategy GeoBio Energy intends to become a plant to pump solution in the quest for energy independence and a cleaner environment. The company’s business model emphasizes the acquisition of existing, profitable wholesale distribution companies, with the goal of increasing profitability through economies of scale and introducing available, alternative fuels to their customers. The company is working to develop and grow feed stocks for the production of low cost, alternative fuels that will not compete with acreage or resources dedicated to food crop production. GeoBio intends to focus on algae as a feed stock that, when produced on a commercial scale, has the potential to provide a low cost feed stock, that is non-competitive to food based sources, for the production of biofuel and offers a commercial scale solution for CO2 sequestration and other environmental challenges.
Safe Harbor Statement
The contents of this Press Release may contain forward-looking statements which can be generally identified as such because the context of the statement will include the words such as “expects,” “should,” “believes,” “anticipates” or words of similar import. Such forward-looking statements are subject to certain risks and uncertainties including the financial performance of GEOBIO which could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.
This Press Release does not constitute any offer, invitation, or solicitation to purchase securities.
“Forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995, may be included in this press release. These statements relate to future events and/or our future financial performance. These statements are only predictions and may differ materially from actual future events or results. GEOBIO disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. Please refer to the documents filed by GEOBIO with the Securities and Exchange Commission, which identify important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with our ability to (i) increase revenues, (ii) obtain profitability, (iii) obtain additional financing, (iv) manage changes in general economic and business conditions (including in the asset management and asset tracking industries), (v) react to actions of our competitors, (vi) develop new services and markets for our services, (vii) properly quantify the time and expense involved in such development activities, (viii) identify and manage risks in connection with acquisitions (ix) evaluate the level of demand and market acceptance of our services and (x) make necessary changes to our business strategies.
Media Assist: EquityDigest.com
Contact:
GeoBioEnergy, Inc.
Jeff Jordan, VP, 415-332-7200
or
Erin Milgram Sr. Associate
Source: GeoBio Energy, Inc.
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