Consulting Agreement and Biofuel Supply Agreement with APPCO Provides NewGen Platform for Increased Revenue through Expanded Biofuels Distribution
Sep 14, 2007
NewGen Technologies, Inc. ("NewGen") (OTCBB: NWGN) announced today that it and Titan Global Holdings, Inc. ("Titan") completed a definitive Consulting Agreement which will become effective upon Titan's acquisition of Appalachian Oil Company ("APPCO"), the final closing of which is scheduled to occur within 72 hours. NewGen had previously announced this consulting agreement on July 25, 2007.
"NewGen is strategically positioned to be the leader in renewable and environmentally friendly biofuel supply and distribution from our own fuel terminals out to wholesale and retail under one umbrella in the Southeastern United States," said NewGen Chairman and CEO Bruce Wunner. "The completed agreements provide us with ongoing revenue and the exclusive right to supply biofuels long-term to APPCO, which was a synergy we sought at the time we initially bid for APPCO. We believe this strategic relationship with Titan and APPCO will benefit NewGen, ReFuel America and our shareholders."
Wunner added, "NewGen plans to capitalize on APPCO's existing extensive distribution network of more than 160 locations and its 80 years of operational expertise. NewGen will now aggressively focus on the ReFuel America fuel terminal revitalization, expansion and upgrades to also facilitate blended biofuels, including ethanol and biodiesel, as well as premium gasoline and diesel fuel distribution initially into the Charlotte, NC, Spartanburg, SC and Columbus, GA markets, as well as other target markets in the Southeastern U.S.."
Other key details of the agreements reached with Titan and APPCO as previously announced are as follows:
In exchange for NewGen's cooperation with Titan's efforts to purchase APPCO and other consideration, Titan agreed to reimburse NewGen $1.3 million for good faith deposits previously paid by NewGen to APPCO and other APPCO related professional fees and expenses incurred by NewGen. Payments are to be made at the APPCO closing, which is set to occur within 72 hours.
NewGen will receive $600,000 annually under the consulting agreement to provide advice on strategic and operational business matters related to biofuels and related areas. Payments will be made monthly commencing at the APPCO closing.
NewGen's fuel distribution subsidiary ReFuel America becomes the exclusive long-term supplier of biofuels including renewable and environmentally friendly ethanol and biodiesel products for APPCO. Term of agreement is for a period of 10 years and it is estimated that APPCO's requirements for biofuels will be substantial given its current distribution of over 225 million gallons of fuel products per year today, and will grow as the company grows as well.
About NewGen Technologies, Inc.
NewGen's strategic business plan enables the Company and its subsidiaries to become a leading global fully integrated "Fields-to-Wheels™" manufacturer, blender, supplier, and distributor of premium biofuels and petroleum blends that dramatically reduce the environmental and economic impacts of world transportation fuel consumption. NewGen believes it has developed a slate of high-quality fuel products by utilizing technologies that allow for more complete fuel combustion, reduced emissions and the means to deliver them to the customer at the best possible price.
The vision of NewGen and ReFuel America, NewGen's wholly-owned U.S. distribution subsidiary, is a world less dependent on petroleum-based fuels, using secure, renewable, homegrown fuels which better preserve our most important resources –the air we breathe and water we drink.
Additional information can be found at the Company's Web sites: www.newgenholdings.com & www.refuelamerica.com
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Safe Harbor Statement Under the Private Securities Litigation Act of 1995 - With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of NWGN could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may,""will,""should,""expect,""plan,""anticipate,""believe,""estimate,""predict,""potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.For further risk factors see the risk factors associated with our Company, review our SEC filings.
