Date: September 3, 2008
Source: Blue Earth Solutions, Inc.
Blue Earth Solutions Raises $14.1 Million Strategic Investment from Consortium of New Investors
Investor Base Includes Green "Clean-Tech" Investors, Forbes 400 Member and Hedge Fund Enables Purchase of 8 New StyroSolve Extrusion Systems, Adding 20,000 lbs. of Polystyrene Recycling Capacity Per Hour
Blue Earth Solutions, Inc. (OTCBB: BESN) is pleased to announce closing of a private placement with gross proceeds of approximately $14.1 million. The private placement was oversubscribed—the company only sought to raise $10 million initially but expanded it due to demand—and consisted of the sale of approximately 28 units, each consisting of 50,000 shares of Series C Preferred Stock with voting rights, conversion features, dividends and a liquidation value of $10.00 per share. Conversion rights include warrant coverage at an exercise price of $8.00 per share until December 31, 2010. The private placement is subject to all regulatory approvals.
The proceeds of the private placement will be used to accelerate the Company's national expansion into new locations, secure new facilities and capital equipment, evaluate international growth opportunities and fund general administrative and working capital requirements.
In connection with Blue Earth's strategic investment it has finalized a $4.1 million purchase order of eight new StyroSolve™ extrusion systems, which will add production capacity of approximately 20,000 lbs. of polystyrene recycling per hour. The Company's patented StyroSolve™ expanded polystyrene ("EPS") recycling system provides an environmentally safe process to reduce EPS waste and recycle it into high quality reusable polystyrene pellets. The polystyrene product market is estimated at $27 billion annually, extending throughout industrial, commercial and consumer markets.
James Cohen Jr., Vice President of Business Development, was quoted, "This oversubscribed strategic financing, in addition to the upcoming Tax-Exempt Manufacturing Industrial Development Bond Issues, managed by Jesup & Lamont, will enable us to expedite our national expansion while redeploying the dollars invested in each new location as we expand the foam EPS recycling business internationally."
Kamal Tayara, Managing Partner of Dubai-based KCP Capital (www.kcpcapital.com), an investor in this offering, was quoted: "The addition of this capital will help Blue Earth Solutions, Inc. implement its business plan on a global scale. Based on our due diligence and evaluation of the company's business model, technology and discussions with management, we believe the company is positioned to be the preeminent clean-tech provider of polystyrene recycling globally and is well positioned to take advantage of the trend towards green solutions and recycling in the consumer and commercial consciousness."
The securities being offered have not been registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.
Additional details on the transaction(s) will be filed shortly by Blue Earth Solutions, Inc. with the Securities and Exchange Commission on a Form 8-K.
About Blue Earth Solutions, Inc.:
Blue Earth Solutions, Inc. provides practical, economical and environmentally safe polystyrene recycling using its patented StyroSolve™ system to produce high quality recycled polystyrene pellets suitable for use in virtually all EPS manufacturing applications. The StyroSolve™ process provides a superior alternative to other expanded polystyrene ("EPS") disposal methods, reducing landfill waste and eliminating the dangers of incineration toxins. The Company's proprietary system provides a biodegradable solution to recycle EPS foam and re-manufacture high quality polystyrene pellets. Producing high quality recycled polystyrene pellets significantly reduces the need for virgin petroleum-based polystyrene, providing obvious environmental and economic benefits. Blue Earth Solutions' mission is to implement a practical, economic and environmentally safe EPS recycling solution on a global scale.
About KCP Capital:
KCP Capital is a unique partnership, an entrepreneur-led merchant bank investing in and managing assets in high-growth industries and the ascendant emerging markets. With its headquarters in Dubai and offices in Europe and North America, KCP sits at the juncture of East and West, and leverages its cross-border and cross-cultural expertise to maximize returns.
KCP principals have deep backgrounds in the fields of media, real estate, technology, retail, transportation and telecommunications, and have served as entrepreneurs, operational executives, venture capital investors and investment bankers. We are hands-on investors and managers—an approach that maximizes value for our investors and portfolio companies—and we are well versed in each phase of the corporate lifecycle, from start-up to early and later-stage growth to restructuring and insolvency situations.
KCP excels at identifying complex, undervalued opportunities and transforming them into high-value assets. In recent years, KCP principals have managed successful investments in companies such as KPE, Nextivity, KIT digital, Slipgate Ironworks, and Silicon Spice, creating well over $1.5 billion in market value.
Safe Harbor Statement:
Except for historical information, the matters set forth herein, which are forward-looking statements, involve certain risks and uncertainties that could cause actual results to differ. Potential risks and uncertainties include, but are not limited to, perceived or actual benefits from Blue Earth Solutions' planned operations, the market acceptance and level of sales derived from its operations.
Union Investor Relations
Ian Shanno, (310) 928-3780