GROVELAND, Fla., Oct. 10, 2012 /PRNewswire/ -- Eco Ventures
Group, Inc. (OTCBB: EVGI), an emerging producer of diversified
sustainable alternative energy and resources, today announced
Germany-based Energiepark Supitz
GmbH ("EPS") has signed a contract to supply at least 90,000 metric
tons of rapeseed oil to GGT Trading, Ltd, valued at a minimum €93
million, or approximately US$121
million, over the next 15 months. The Company August 7 reported it had signed a Definitive
Agreement to acquire EPS and, on Oct.
8, announced it planned to acquire 100 percent of EPS in a
single closing transaction.
This contract contains a provision that allows GGT to buy up to
a total 120,000 metric tons from EPS, or 33 percent more than the
minimum, over the 15-month term with an upside total value of
€124.8 million or approximately US$162
million. The contract deliveries will begin ramping up
this month, with the majority of the revenue expected to be
recorded in 2013.
GGT is a Cyprus-based firm with
a strong presence in Poland and
elsewhere in Eastern Europe. It
has major business interests in biodiesel, oil and steel as well as
strong business and political connections throughout those sectors
and the region. It has purchased 5,000 to 10,000 tons of EPS'
rapeseed oil annually for the past two to three years.
During that time, EPS has established an excellent reputation
for the consistently high quality of its rapeseed oil and high
reliability of its fulfillment. As a result, GGT has dramatically
increased its purchase of EPS rapeseed oil from approximately
10,000 metric tons annually, to a minimum 90,000 metric tons over
the next 15 months. This contract represents a minimum incremental
revenue increase to EPS of approximately $100 million on an annualized basis.
EPS buys rapeseed from growers in Germany and elsewhere, and processes them
through its mill producing rapeseed oil and rapeseed cake. EPS
sells the rapeseed oil to be used as cooking (canola) oil or
feedstock for biofuel production. It sells the rapeseed cake to
farmers who use as it nutritious feed for livestock.
Mark Cox, President of EVGI,
said, "This dramatically increased rapeseed contract confirms EPS'
ability to compete against the largest companies in all of
Europe and to win the big
contracts. This contract has healthy gross margins, and will enable
EPS to continue to generate robust growth year over year,
organically, in its core markets profitably. EPS last month
posted revenue for the first six months of 2012 that doubled to a
record $24.4 million, and it posted
$41.4 million in trailing twelve
months revenue ended June 30,
2012.
"Adding $100 million in revenue is
a game changer," Mr. Cox added. "It positions EPS as a leader
amongst the industry's largest players to capture market share and
bigger wins in the future. With the execution of this contract, we
see EPS' 2013 revenue doubling, if not tripling, over what we fully
expect will be record 2012 revenue. Further, EPS has a number of
other positive, potentially game changing strategic initiatives in
its new business pipeline for which we are increasingly
optimistic."
"This new agreement confirms our investment in the industry was
well thought out, and we are now reaping the reward of a solid
growth strategy," said Matthias
Tanzer, EPS Co-founder, Principal and Operations Manager.
"We anticipate this relationship and other seeds we planted in
Eastern Europe to flourish in the
coming year."
About Eco Ventures Group
Eco Ventures Group, Inc. ("EVGI") is both acquiring and
developing a portfolio of ecologically friendly businesses to
provide renewable energy and related feedstock
(www.ecoventuresgroup.com).
EPS is a diversified alternative energy feedstock,
transportation, heat & solar power production company with
approximately 50 employees -- whose primary business is the
production, processing and brokering of alternative energy
feedstocks including rapeseed, palm oil and wood. The
acquisition combines two renewable energy companies whose
technology, bio fuel and grid-tied energy products will create a
diversified international platform with important operating
synergies.
Safe Harbor Statement
Safe Harbor statement under the Private Securities Litigation
Reform Act of 1995: EVGI encourages those interested in our Company
to rely only on information included in our filings with the
United States Securities and Exchange Commission which can be found
at www.sec.gov. Statements released by Eco Ventures Group, Inc.
that are not purely historical are forward-looking within the
meaning of the "Safe Harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including statements regarding the
company's expectations, hopes, intentions, and strategies for the
future to include all those of its intended acquisition of
Energiepark Suptitz, GmbH. Investors are cautioned that
forward-looking statements involve risk and uncertainties that may
affect the company's business prospects and performance. The
company's actual results could differ materially from those in such
forward-looking statements. Risk factors include but are not
limited to general economic, competitive, governmental, and
technological factors as discussed in the company's filings with
the SEC on Forms 10-K, 10-Q, and 8-K. The company does not
undertake any responsibility to update the forward-looking
statements contained in this release.
Contact
Eco Ventures Group, Inc.
7432 E. Highway 50, Suite 101
Groveland FL 34736
Phone: (352) 557-4830
Email: info@ecoventuresgroup.com
Investor Contact:
Mirador Consulting
Frank Benedetto
Tel: (561) 989-3600
SOURCE Eco Ventures Group, Inc.
