Universal Systems Executes MOU to Acquire BioStar Technologies
May 27 2008 - 7:57AM
Marketwired
BAKER CITY, OR announced today that it has executed a Memorandum
of Understanding to acquire BioStar Technologies in a
share-for-share exchange.
BioStar specializes in supplying microbial, enzymatic, and
chemical products and technology for the petroleum, refining and
pipeline industries to assist with the optimization of crude oil
production, crude properties, and all processes associated with
hydrocarbon exploitation, transportation, refining, and
distribution of its derivatives. BioStar has based its development
in products with the highest degree of environmentally safety
standards, and environmentally conscious procedures. It has
operated in Alaska, Louisiana, and California since 1990, including
international operations in Canada, Venezuela, Trinidad, Ecuador,
and Syria.
"We are excited about the pending acquisition of BioStar," said
Mr. Kevin Chambers, CEO of USI. "Their products and services are
especially complementary to our corporate mission to provide
economically and ecologically viable water and wastewater treatment
solutions worldwide."
Under the terms of the MOU, USI would issue 2,500,000 shares of
"restricted" common stock in exchange for 25,000 shares of common
stock in BioStar, representing 100% of the total issued and
outstanding shares of BioStar. As such, BioStar would become a
wholly owned subsidiary of USI, conducting its daily business
separate from, but under the supervision of USI. In addition, both
companies would have the right to appoint two (2) members to each
others' board of directors.
USI will initially provide $1,000,000 in developmental capital
to BioStar upon the execution of a final acquisition agreement with
$4,000,000 in additional growth capital within 12 months of the
acquisition date. The final agreement is anticipated to be
completed within 60 days, following the completion of the due
diligence process and acceptable company integration plan.
Mr. Daniel Spencer, Chairman of BioStar commented, "This
proposed merger with USI provides BioStar with much needed capital
to fully realize its business potential. Furthermore, the
integration with USI will enhance each other's products and
services and will provide the vehicle to cost-effectively and
efficiently market our collective offerings."
About Universal Systems, Inc.
Universal Systems, Inc (USI) is a publicly traded holding
company focused on providing economically and ecologically viable
water and wastewater treatment solutions. USI offers a FULL SERVICE
turnkey water treatment services, specializing in "slop oil" and
CBM (Coal Bed Methane) produced water.
In 2007, USI obtained an exclusive worldwide licensing agreement
to provide slop oil and processed wastewater treatment services to
the oil industry. The company's mission is to become the leader in
the development and delivery of cost effective slop oil and
processed wastewater treatment. USI joined Powell Water Systems.
Inc. (PWS) and Water Solutions, LLC (WS) to bring PWS's patented
electrocoagulation technology to the oil industry, making large
flow waste oil, and water treatment efficient and cost
effective.
More recently, USI has discovered the immediate need to become
involved in building, owning, and operating central produced water
processing facilities. This service is widely needed wherever
natural gas is produced; the diminished capacity to handle
processed water from natural gas production is causing some
production wells to be shut in until alternative-treating plants
can be brought on line. As tougher water discharge regulations are
being imposed, the need is becoming even greater.
USI's business plan for expansion includes the purchase or
acquisition of other specialized trade service companies that will
complement and enhance the overall product and service offering of
the company.
About BioStar Technologies
BioStar Technologies is a company created in 1990 solely as a
microbial company, which has added new products to its line through
research and development, and that has formed alliances with water
treatment equipment manufacturers to market their equipment and
technology. The water treatment technology offers the opportunity
to provide this kind of service in different areas of the world. An
initial approach has been taken to incorporate this service and has
been welcomed by potential clients. The firm is currently managed
by the founder and Mr. Daniel Spencer, and Mr. Alirio Pinango,
co-owner, a Mechanical Engineer with nineteen years of experience
in associated petroleum engineering areas.
Safe Harbor Statement Under The Private Securities Litigation
Reform Act Of 1995:
The Private Securities Litigation Reform Act of 1995 (the
"Reform Act") provides a "safe harbor" for forward-looking
statements to encourage companies to provide prospective
information, as long as those statements are identified as
forward-looking and are accompanied by cautionary statements
identifying important factors that could cause actual results to
differ materially from those discussed in the forward-looking
statements. Universal Systems, Inc. desires to take advantage of
the safe harbor provisions of the Reform Act. All future written
and oral forward-looking statements attributable to the Company or
any person acting on its behalf are expressly qualified in their
entirety by the cautionary statements contained or referred to
above. New risks and uncertainties arise from time to time, and it
is impossible for the Company to predict these events or how they
may affect the Company. We assume no obligation to update any
forward-looking statements as a result of new information, future
events or developments, except as required by federal securities
laws. In addition, it is our policy generally not to make any
specific projections as to future earnings, and we do not endorse
any projections regarding future performance that may be made by
third parties.
Universal Systems, Inc. is traded on the OTC Exchange under the
symbol UVSS. More information is located at the web-site
www.universalsystemsinc.net
Contact: Kevin Chambers info@universalsystemsinc.net
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