Canadian $10 million joint venture to recycle tires using microwave technology
According to a press release by Newsfile Corp., Environmental Waste International Inc (EWS), announced that it has entered into an agreement today with Torreco Inc. ("Torreco"), a private Ontario corporation, whereby Torreco agrees to invest $7 million to convert EWS's pilot plant in Sault Ste Marie, Ontario into the Company's first commercial scale tire recycling plant utilizing EWS's patented microwave technology. EWS will retain a 30% ownership interest in the plant and receive a royalty in perpetuity on the revenue generated from the sale of valuable commodities produced from its environmentally friendly tire recycling process. The investment by Torreco is being made via common share purchases of Ellsin Environmental Ltd. ("Ellsin"), a wholly owned subsidiary of EWS, which owns the Company's waste tire facility in Sault Ste Marie including land, building and equipment. The $7 million will be used to expand and modernize the plant utilizing EWS's latest technology. In exchange for the investment in Ellsin, Torreco will also be granted the right to build three additional end-of-life tire recycling facilities in Ontario over the next five years if it meets certain conditions.