E-Waste Systems, Inc.,a corporation created to acquire and integrate
elements of the electronic waste industry through acquisitions, implementation
of business development initiatives and the promotion of Fair Trade e-waste
solutions, today reaffirmed its first annual state of the company.
Martin Nielson, CEO of E-Waste Systems, states, "EWSI was created with high
expectations, to address the socially responsible need to provide global e-waste
solutions which protect the environment and do so in a manner that financially
benefits our company's stakeholders and customers. The e-waste industry is
ubiquitous and grows substantially every day."
Nielson continues, "Most see this market on a localized or micro basis, but
we look towards old cell phones or iPods and see a market on a global scale. The
electronics industry knows no national boundaries. The millions of tons of
e-waste generated globally represent, on the one hand, dramatic value in the
form of recyclable materials, repurposed goods, precious metals and potential
new raw materials. On the other hand, if not processed properly, these items
will have a massive, negative effect on the Earth and will be a waste of
precious resources."
EWSI's core strategy is designed to address this mix of opportunity for
reward and environmental responsibility by consolidating key elements of this
highly fragmented e-waste industry. The company seeks selective acquisitions and
partnerships led by executives whose teams unite complementary services and
necessary geographies together with an excellent customer base. EWSI expects to
leverage these companies by implementing new business development initiatives
and embracing Fair-Trade E-Waste recycling principles.
In the 1st quarter of the year 2011, E-Waste Systems, Ltd. was established as
a wholly-owned subsidiary of the public company, which was at that time a fully
compliant, pristine shell entity. In the 2nd quarter, previous management
resigned from the parent company and EWSI's current management began to assume
control. The parent company name changed to E-Waste Systems and its new trading
symbol became EWSI.
In the 3rd quarter, the company's acquisition program was launched and
resulted in EWSI's initial purchase of a young Ohio company, in the 4th quarter.
The brief period from acquisition to year end resulted in $125K in sales at 56%
gross margin, while the full year showed $575K in sales and was profitable on an
operating basis. During the months of December 2011 through March 2012, EWSI
largely halted operations to implement new production and accounting systems, to
transition the operation to a new location, and to hire new staff. The company
also executed a number of smaller financial transactions, including converting
previous obligations to equity. In the second quarter, it retained Oracle
Capital's cleantech team under the dual roles of M&A Advisor and exclusive
Placement Agent.
The losses incurred in its first fiscal year of operation and YTD 2012 are
related to the costs associated with the start-up, including the hiring of
professional advisors, board members and executives, which are key to
implementing EWSI's strategy. The appointments include: Steve Hollinshead (CFO),
Susan Johnson (Secretary, Treasurer and VP Admin); Paul Haft(COO, EWSO and VP
Group Operations); Peter Munday, (NED); Larry Magor, (NED and Chair of the Comp.
Committee and Nominating Committees); lawyers, auditors and other advisors in
the U.K. and U.S.; and executive consultants Rick Fine and Ghassan Saade. All
of these individuals possess significant industry experiences and you can read
more about each of their backgrounds on the website.
By completing the Ohio acquisition, EWSI converted from shell to trading
status and attained DTC/DWAC eligibility. EWSI also agreed to buy out the
earnout payment of the sellers of the Ohio acquisition. With the recent
appointment of Oracle Capital the basis for building the business is in tact and
management looks forward to bringing in the capital resources necessary to
implement the next key elements of the strategy.
About E-Waste Systems, Inc.:
Headquartered in London, where e-waste regulations are the most stringent in
the world, EWSI aims to be a leading provider of e-waste related services in key
jurisdictions globally. Blumberg Associates estimates the e-waste sector at a
$55B industry annually, as legislation increasingly mandates that e-waste can no
longer be landfilled. OEM's, retailers and users are increasingly responsible
for end-of-life management of e-waste, while Corporate Social Responsibility
demands highly compliant, professional solution providers. The collection and
recovery industry is also highly fragmented and EWSI considers these elements as
an attractive environment for its buy, build and upgrade strategy. Visit www.ewastesystems.com to learn more.
Source: PR Newswire (http://s.tt/1edZT)