M2 Renewables Joins Ridgeline's Growing Team
Patented Technologies and Water Treatment Assets
CALGARY and
SCOTTSDALE, AZ, May 13, 2013 /CNW/ - Ridgeline Energy Services
Inc. ("Ridgeline" "RLE" or the "Company") (TSXV: RLE, OTCQX:
RGDEF, FSE: RL7) a technology driven company operating in the
waste water industry, today announced a Management Agreement with
M2 Renewables ("M2R") of Lake Forrest, California, effective May 10th, 2013.
The Management Agreement allows Ridgeline to
manage M2R while a definitive agreement to purchase all interests
of M2R by Ridgeline is finalized by mid-June, 2013. A required
third party audit will be conducted of M2R.
M2R operates on a seven acre industrial waste
water treatment facility located in Fontana California. In addition, M2R has
installed its waste water treatment technology in some of the
largest food processing plants in the
United States. M2R also operates sales offices in
Kansas City, central to
Ridgeline's Carthage, Missouri
facilities.
M2R technology centers on a patented MicroScreen
process and patented tertiary filtration system that eliminates
suspended solids as well liquid contaminates.
This transaction marks the fifth Ridgeline
Management Agreement in just over one year. A step by step process
used successfully at the Santa Fe
Springs facility in California, and the Company's Carthage, Missouri facility. The Management
Agreement allows Ridgeline to do a higher degree of diligence as
the company has full access and visibility of financials, operating
capabilities, customers, suppliers, and all aspects of managing the
business. Ridgeline will have independent auditors reviewing all
financial and business records of M2R since its inception in
2003.
The definitive agreement expected to be executed
next month, will include all M2R patents and intellectual property.
The Management Agreement and future definitive agreement are
expected to add approximately $ 5.5MM
in annual revenues for this fiscal year alone. The Management
Agreement includes a $ 150,000 per
month payment to Ridgeline for initial costs of matriculating in
operations of M2R. Seventy percent of the final purchase of M2R by
Ridgeline is based on an agreed earn out schedule. Ridgeline's in
house manufacturing is expected to more than double M2R's sales
margins.
Dennis M. Danzik,
CEO stated; "The addition of the substantial suite of M2R
business operations, Patents and equipment to Ridgeline is
immediately accretive, and completely disruptive to current
technology; specifically, when it comes to two dated technologies;
dissolved air flotation and solids dewatering. The combination of
Ridgeline's micro gas separation technology and M2R MicroScreen
conserves up to 70% of the energy used in older technologies and
substantially reduces the use of water treatment chemicals. M2R
joining the Ridgeline Team brings three major components to our
Company's future. First, a great geographic location in
Fontana California, that extends
our rapidly growing market reach in Southern California. Unlike our build out
challenges at our Santa Fe
Springs, that took months to upgrade; the Fontana facility is a fully functioning water
treatment complex that not only treats water for major customers,
but delivers a substantial portion of that water back for
industrial reuse. Second is the perfect bolt on, patented
technology that M2R has developed, and commercialized. The M2R
group brings a new line of products to manufacturing at Ridgeline.
Last but not least, is the world class team at M2R, including depth
of financial management, unmatched environmental experience, and
technological abilities second to none in tertiary water treatment.
Our team at Ridgeline knew that M2R and its management had several
paths to business objectives. We are very pleased that M2R
management chose Ridgeline. It is a very flattering endorsement.
One visit to the M2 Renewables website will both educate and
impress."
Christopher
Rhoades, M2R CEO stated, "I am very excited about the
synergies between M2 Renewables and Ridgeline Energy Services. The
M2R MicroScreen and Modular Filter Systems will significantly
enhance the solids removal process and reduce cost for Ridgeline's
fast-growing industrial waste water and oil and gas business
segments. Ridgeline provides us with an improved business
model to actually design, build, own and operate our combined
technologies at our facilities or the customer's site. Together, we
will provide more value to the industrial customer while expanding
Ridgeline's ability to mine waste water for valuable materials to
be converted to fuel and other energy products at the Ridgeline
plants. Further, Ridgeline's manufacturing capabilities will
allow us to significantly reduce costs, which will drive margin
expansion and market share opportunities."
The Management Agreement between Ridgeline and
M2R will expand revenue opportunities immediately in the mid-West
including Kansas, Arkansas, Texas, Louisiana, Mississippi, and Tennessee. The newly combined technology
assets will be focused on large food processing plants in the
mid-West that are currently experiencing substantial cost increases
in waste water processing and disposal. M2R has installations at
some of the largest food processors in the world, and nearly a
dozen purchase orders for initial testing, primarily in the central
and southern United States.
About M2 Renewables:
M2R developed, patented, and has commercialized
technology in the treatment of municipal and select industrial
waste water. M2R technology reduces capital costs by 50%,
electricity costs by 20 to 80%, and reduces the footprint required
by 90% over conventional dissolved air water treatment and chemical
flocculation. The company's systems can also convert wastewater to
water that can be used for irrigation and other water reuse
applications. Additional information is available on the company's
website: www.m2renewables.com
About Ridgeline Energy Services, Inc.
Ridgeline Energy Services Inc. is a technology
driven company operating in the waste water industry. The Company
is applying proprietary technology to treat water generated from
industrial and commercial waste water markets, which can also be
mined for valuable effluents and other materials that can be
refined into fuels and other products. The Company trades on the
TSX Venture Exchange under the symbol "RLE", the OTCQX as "RGDEF"
and the Frankfurt Stock and Stuttgart Exchanges as "RL7".
ON BEHALF OF THE BOARD OF DIRECTORS
D.M.
Danzik
Dennis M. Danzik
Chief Executive Officer
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SOURCE Ridgeline Energy Services Inc.