Non-hazardous wastewater treatment margins at SCWW by contrast are over 30%.
In 2009, SCWW gross revenues totaled $6,205,903 with an EBITDA of $1,751,333.
We were thrilled to sell SCWW to GEM and become part of their growing wastewater plans," said Doug Edwards, Chief Strategy Officer of GEM and former owner of SCWW.
Mitzel commented, "Our business model, centered around a permitted, non-hazardous waste, fixed based treatment and disposal facility, like SCWW, generates greater margins for us than those achieved by our previous model.
Koziol also added, "We look forward to marketing PetroMax and sharing with our shareholders how this process both enhances our current wastewater services at SCWW
and brings us into the broader oil and gas service industry.
GEM financed the acquisition through the issuance of six promissory notes in the aggregate principal amount of $9,003,000, along with warrants for the principals of SCWW to purchase 425,000 shares of GEM's common stock.
We plan to work with SCWW CEO Doug Edwards and his team to achieve the goal of becoming the premier independent non-hazardous wastewater management company; First in California, then the western region and eventually in the United States.
Koziol concluded, "With the addition of GEM's sales, marketing, operational and regulatory expertise, we believe that we can grow SCWW
significantly in the coming years.
GPP was instrumental in developing the SCWW opportunity for GEM management and we are excited to have this expanded assignment," said GPP Managing Director Kevin O'Connell.
Focusing on profitable wastewater treatment companies, we will work to ensure that all transactions are accretive as demonstrated with the SCWW acquisition.
I have had a vision of growth for SCWW and am confident that by teaming with GEM, together we'll be able to make that vision a reality.
Tim Koziol also provided an update on GEM's strategic plan, "We will be focused on closing the SCWW transaction and continuing our research and development to strategically enter the waste-to-energy markets as discussed in last week's news release.