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MarketScreener Homepage  >  Equities  >  OTC Bulletin Board - Other OTC  >  Genco Corporation    GNCC


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Genco Corporation Com Usd0.001 : Genco Acquires Complete Initial Generator Package in Preferred Stock Transaction

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03/31/2008 | 04:08pm EDT

TYLER, Texas, March 31 /PRNewswire-FirstCall/ -- Genco Corporation (Pink Sheets: GNCC) announced today the signing of a contract for acquisition of the Phase 1 generators for its planned construction and operation of a biomass and bio-gas production facility in Melbourne, Ontario, Canada. Acquiring the generators is the crucial first step in securing the project's key components. This generator package includes all of the necessary equipment to produce the facility's initial 5 Megawatt (MW) electrical power target.

The contract calls for the owner, HalMar International (Canada) Incorporated, to receive 1,200,000 shares of Genco $1 par value convertible preferred stock, and will close upon funding of Genco's initial capital offering.

The generator package includes two 2.5MW Baylor AC generators, along with the associated engines and ancillary equipment. The generators were retrofitted from diesel to be able to burn low calorific value gas, such as methane. This was completed by Siemens in May 2000 after which they operated only a few hours before the associated project was cancelled. The generators originally cost $4.8 million and have an estimated current market value of $2.8 million. The ancillary equipment, including scrubber tower, mufflers and associated stainless piping, are estimated at a $1.2 million value to the project.

Genco plans to capitalize on favorable regulatory, political and economic climates to provide a Green Power Processing Facility aimed at electrical power generation and agricultural effluent-recycling. The Company's vision is to be one of the premier Green Power generators operating from renewable sources and upholding good environmental policy while providing an essential service to consumers.

Management projects cumulative earnings before interest, depreciation and taxes (EBITDA) to total $55,882,164 on cumulative sales of $69,411,877 after five years. This would give Genco Corporation a valuation of 8 times EBITDA, or $139,696,640 after five years.


Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements, other than the statements of historical facts, may be deemed to contain forward-looking statements with respect to events, the occurrence of which involves risk and uncertainties, including, without limitation, demand and competition for the company's products and services, the availability to the company of adequate financing to support its anticipated activities, the ability of the company to generate cash flow from operations and the ability of the company to manage its operations. As statements regarding future events concern management's estimates of future results of operations, and as these estimates are based on many elements beyond management's control, differences from these estimates may be material.

    Corporate Contact:   Robert Hardy

SOURCE Genco Corporation

© PRNewswire 2008

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