CALGARY, AB. -BioteQ Environmental Technologies Inc. (“BioteQ”) (TSX: BQE) and Newalta Corporation (“Newalta”) (TSX: NAL) are pleased to announce an agreement between the companies to pursue joint projects that could apply the innovative environmental technologies and operating expertise of both BioteQ and Newalta. The companies will work together to identify waste treatment projects that recover, recycle, or treat industrial waste and manage related by-products. Once suitable candidate projects for development have been identified, BioteQ and Newalta will work to jointly commercialize these projects, capitalizing on the strengths of both of these parties.
In connection with this agreement, Newalta will work with BioteQ to complete a purchase of 3,636,364 common shares, at a price of $1.10 per share (the “Issue Price”), from the treasury of BioteQ for consideration of $4 million. Each share purchased will include an additional warrant to purchase one common share of BioteQ at 125% of the Issue Price for one year and 150% of the Issue Price thereafter. The warrants expire after 5 years. BioteQ and Newalta expect to complete the private placement before January 31, 2010.
Brad Marchant, BioteQ’s Chief Executive Officer, stated, “We are pleased to partner with Newalta and look forward to the opportunities that may develop from combining our technical expertise with Newalta’s facility network, customer relationships and operating capabilities.”
Al Cadotte, President and Chief Executive Officer of Newalta, added, “BioteQ’s leading-edge technologies have the potential to treat a broad range of industrial wastewaters, including SAGD wastewater. We are excited about the prospects for using these processes both at our facilities across Canada as well as on our customers’ sites.”
The assessment of projects by Newalta and BioteQ will begin immediately. Completion of joint projects and the private placement are subject to agreement between the parties on mutually satisfactory terms and standard exchange and regulatory approvals.
BioteQ is a water treatment company that applies innovative technologies and operating expertise to solve challenging water treatment problems, reducing environmental liabilities while delivering lower life cycle costs for water treatment. The Company’s commercially proven technologies treat industrial wastewater contaminated with dissolved heavy metals and sulphate, producing saleable by-products and clean water that can be discharged safely to the environment. BioteQ has built eight plants at sites in Canada, the US, China, Australia and Mexico, with additional projects in design and construction. BioteQ trades on the TSX as BQE. For more information, visit www.bqewater.com.
Newalta is Canada’s largest industrial waste management and environmental services provider and focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. With talented people and a national network of facilities, Newalta serves customers in the automotive, construction, forestry, lead, manufacturing, mining, oil and gas, petrochemical, pulp and paper, refining, steel and transportation service industries. Providing solid investor returns, exceptional customer service, safe operations and environmental stewardship has enabled Newalta to expand into new service sectors and geographic markets. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.
On behalf of the Board of Directors