Palm Beach, FL, May 17, 2018 (GLOBE NEWSWIRE) -- Q2Earth, Inc. (OTCQB: QPWR) sent the following letter to shareholders today, providing updates about its acquisitions in process and funding opportunities:
Dear Q2Earth Shareholders:
We continue to make progress on our strategic plan of acquiring compost manufacturing companies. These are firms that recycle multiple waste streams to produce valuable, environmentally-beneficial soil products for the agriculture, horticulture and construction sectors. Below are some recent highlights:
- We signed a new Letter of Intent this week to acquire a compost manufacturing company in Florida (one of the two referenced in our April update letter). With the previously reported signed LOI’s for companies in Texas and north Florida, we now have three acquisitions in process which collectively generated in 2017 over $14 million in revenue and almost $3 million in EBITDA.
Our goal is to complete diligence and sign definitive acquisition agreements with all three companies during the month of June. As these definitive agreements are signed, we will be able to provide the public with more information about the specific companies and our plans for growing each of them. As previously reported, ETS in Naples, Florida, is not one of the three companies we are pursuing for this initial round of acquisitions.
- Funding efforts continue forward. We believe the initial acquisition pipeline of three companies, the last of which we signed only this week, is a critical element to securing meaningful long-term financing. We are in discussions with multiple equity and debt groups to provide funding for these acquisitions plus additional operating capital to set-up the next round of growth. At this time, we are able to present funders with a detailed financial and organizational picture of what Q2 will look like on a consolidated basis upon the closing of our deals – one that is more robust and diversified than ever before.
The equity-based financing led by our CEO and Chairman that we previously reported is still available, and we are working with the other funding groups to see how this capital can be integrated with larger financing in the $12 million range needed to complete all three acquisitions. In structuring our financing, we are paying close attention to alignment of interests between current shareholders, new funders, management and target owners, as well as limiting dilution and utilizing debt prudently to conserve cashflow. The goal is to build a foundation with this initial round of financing and acquisitions that will allow for rapid, sound growth in the next phases which are already taking shape.
We recognize that some timelines have been pushed back, and communications with our shareholders have been limited during this process. However, we still firmly believe that our strategy is strong, opportunities in this space are significant, and we have the right team to be ultimately successful. Once again, we appreciate the support and patience of all our shareholders and partners.
Best regards,
Kevin Bolin
Chairman and CEO
About Q2Earth: Q2Earth is executing its plan to become a leading manufacturer of compost and engineered soils from recycled waste for the agriculture, horticulture, construction and infrastructure sectors. Through a plan of acquisitions, strategic alliances, and organic growth focused on creating and marketing quality beneficial reuse end products, Q2Earth seeks to build the preeminent compost and soil company in North America, with international growth opportunities.
Legal Notice Regarding Forward-Looking Statements: This news release contains "Forward-looking Statements". These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to our ability to fully commercialize our technology, risks associated with changes in general economic and business conditions, actions of our competitors, the extent to which we are able to develop new products and markets, the time and expense involved in such development activities, the ability to secure additional financing, the ability to consummate acquisitions and ultimately integrate them, the level of demand and market acceptance of our products, and changes in our business strategies.
This is not an offering of securities and securities may not be offered or sold absent registration or an applicable exemption from the registration requirements
Contact
Jeremy Roe, Managing Partner
Integra Consulting Group, LLC
Jeremy@integracg.net
925-262-8305