CINCINNATI, March 31, 2014 /PRNewswire/ -- EQM
Technologies & Energy, Inc. (OTCQB: EQTE) ("EQM"), a leading
provider of environmental services to government and commercial
sectors, announced today that it has engaged Roth Capital Partners,
LLC as its investment banking firm to explore financing
opportunities, with Monarch Capital Group, LLC acting as a
co-manager.
As previously disclosed in January
2014, EQM is party to a memorandum of understanding (the
"MOU") with Sullivan International Group, Inc. ("Sullivan"), a
privately-held professional services firm headquartered in
San Diego, CA, providing applied
science, environmental, and technology services to the commercial
and government sectors. The MOU, which is non-binding and
subject to the satisfactory completion of a mutual due diligence
review, provides that EQM and Sullivan will negotiate and enter
into a merger agreement pursuant to which Sullivan would merge with
and into a subsidiary of EQM. The obligations of the parties
to complete the merger under the terms of the merger agreement
would be subject to various conditions, including but not limited
to a condition that EQM raise at least $10
million in net proceeds in a PIPE or public offering of its
common stock.
"We are excited to work with Roth Capital Partners and Monarch
Capital Group as we seek to expand our environmental services
business and continue to make progress towards a potential merger
with Sullivan, which we believe would provide substantial value to
EQM's stockholders," said Jon Colin,
Chief Executive Officer of EQM.
For the trailing 12 months as of September 30, 2013, EQM and Sullivan generated
approximately $100 million in
combined revenues. In the merger, Sullivan's stockholders
would receive approximately $2
million in cash and 16 million shares of EQM's common stock,
which amounts may be adjusted based on the parties' due diligence
review and EQM's expected debt level following the merger.
Upon completion of the merger, Sullivan's CEO Steve Sullivan would become President and a
director of EQM.
There can be no assurance that the parties will be able to
complete the financing or the merger.
About EQM Technologies & Energy, Inc.
EQM, based in Cincinnati, OH,
is a leading provider of environmental services - consulting &
engineering, clean technology, and remediation & construction
management - to the public and industrial sectors, with
approximately 204 employees and satellite offices and operations in
11 states. EQM has longstanding relationships and multi-year
contracts with numerous federal agencies, including the
Environmental Protection Agency and the Department of Defense
(including the Air Force Center for Engineering & Environment,
Naval Facilities Engineering Command, and the Army Corps of
Engineers), as well as private sector clients across numerous
industries. For more information, please visit www.eqm.com.
This press release may contain forward-looking statements
made in reliance upon the safe harbor provisions of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements include all statements that do not relate solely to
historical or current facts, and can be identified by the use of
words such as "may," "will," "expect," "project," "estimate,"
"anticipate," "plan," "believe," "potential," "should," "continue"
or the negative versions of those words or other comparable words.
These forward-looking statements are not guarantees of future
actions or performance. These forward-looking statements are
based on information currently available to us and our current
plans or expectations, and are subject to a number of uncertainties
and risks that could significantly affect current plans,
anticipated actions and our future financial condition and results.
The uncertainties and risks include, but are not limited to,
our ability to successfully implement our business strategy,
changes and fluctuations in the U.S. public sector's spending
priorities, changes in laws and regulations related to the
protection of the environment, our need for additional financing
and the availability and terms of any such financing, and our
ability to successfully integrate acquired businesses and realize
anticipated synergies. Certain of these risks and
uncertainties are described in greater detail in our filings with
the Securities and Exchange Commission. We are under no
obligation to (and expressly disclaim any such obligation to)
update or alter our forward-looking statements, whether as a result
of new information, future events or otherwise.
Contact
EQM Technologies & Energy, Inc.
Robert R. Galvin, 800-229-7495 or
513-742-7219
Chief Financial Officer
Fax: 513-825-7495
rgalvin@eqm.com
SOURCE EQM Technologies & Energy, Inc.
