ThermoEnergy Announces the Completion of the Second Phase of its
Recapitalization Plan and Changes in Management
LITTLE ROCK, Ark., Nov. 23 /PRNewswire-FirstCall/ -- ThermoEnergy Corporation
(OTC Pink Sheets: TMEN) today announced that the Company completed the second
phase of its recapitalization. The second phase of the plan raised from its
investors $1.4 million in cash and retired $5.9 million of outstanding debt
and interest in exchange for 3.0 million shares of Series B Convertible
Preferred Stock and 5.6 million common stock purchase warrants. The Series B
Convertible Preferred Stock were issued at $2.40 per share and are
convertible, at any time at the discretion of the holder, into 10 shares of
common stock. The warrants have a term of five years and an exercise price of
$0.50 per share. Both instruments include conventional weighted average
anti-dilution provisions. All parties to this second tranche of our
recapitalization provided the Company with complete and general releases to
all claims in the past and present, whether known or unknown.
The third phase of our four-phased recapitalization plan would raise another
$1.8 million of new cash in exchange for Series B Convertible Preferred Stock
and common stock purchase warrants. This phase of the plan will be completed
in conjunction with the signing of a contract for an Ammonia Recovery Project
with the City of New York. The Company expects the contract to be signed in
the very near future.
On October 15th, 2009, Mr. David Gelbaum, Mr. David Anthony, and Mr. Joseph
Bartlett of The Quercus Trust joined the Company's Board of Directors. Mr.
Gelbaum and Mr. Anthony also joined the board of the Babcock-Thermo Carbon
Capture LLC.
ThermoEnergy, through its subsidiary, ThermoEnergy Power Systems, LLC,
recently formed a Limited Liability Company with Babcock Power, Inc. called
Babcock-Thermo Carbon Capture, LLC, (BTCC) to finalize the development and
commercialization of the Company's zero air emission, carbon capture fossil
fuel power plant design. The joint venture is currently designing a 600 Mw
reference plant which will be used to design, build and operate a 40 Mw
demonstration plant at a host utility site.
Finally, Mr. Ted Klowan, Jr., CPA, joined the Company as Executive Vice
President, Chief Financial Officer, and Treasurer this month. Mr. Arthur S.
Reynolds, who served as interim CFO since August 2009 will remain a member of
our Board of Directors.
Mr. Dennis C. Cossey, the Chairman and Chief Executive Officer of ThermoEnergy
said, "We are grateful for the confidence and continuing support of our major
shareholders, which has led to the completion of the second phase of our
recapitalization plan. We are also pleased to announce the addition of Mr.
Gelbaum, Mr. Anthony, and Mr. Bartlett to our Board and the Board of the BTCC
along with the addition of Mr. Klowan as our Chief Financial Officer. We
expect these changes in management of the Company will strengthen the
Company's ability to achieve it's objectives and drive the Company to
profitability."
About ThermoEnergy:
Founded in 1988, ThermoEnergy is a diversified technologies company engaged in
the worldwide commercialization of patented and/or proprietary municipal and
industrial wastewater treatment and power generation technologies. The
wastewater treatment technologies are consolidated in a wholly-owned
subsidiary, CASTion Corporation ("CASTion"), a fast growing developer and
manufacturer of innovative wastewater treatment and recovery systems for
industrial and municipal clients, with large-scale systems operating in the
U.S., Mexico, Canada and Japan. The systems are unique because they meet
environmental regulations while providing a rapid return on investment by
recovering and reusing expensive feedstocks, reducing contaminated wastewater
discharge and reusing wastewater in process operations. CASTion's wastewater
treatment systems have application in aerospace, food processing,
microelectronics, metal finishing, refineries, pulp & paper, heavy
manufacturing and municipal wastewater. All systems are assembled and shipped
from a 20,000 square foot fabrication facility in Worcester, Massachusetts.
The Company, headquartered in Little Rock, Arkansas, has additional offices in
Jacksonville, Florida and New York, NY. Additional information on the Company
and its technologies can be found on its website at www.thermoenergy.com, or
www.castion.com for specific information on its wastewater treatment systems.
THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE "FORWARD LOOKING"
STATEMENTS, USUALLY CONTAINING THE WORD "BELIEVE", "ESTIMATE", "PROJECT",
"EXPECT" OR SIMILAR EXPRESSIONS. FORWARD LOOKING STATEMENTS INHERENTLY INVOLVE
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FROM THE FORWARD LOOKING STATEMENTS. FACTORS THAT WOULD CAUSE OR CONTRIBUTE TO
SUCH DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO, CONTINUED ACCEPTANCE OF THE
COMPANY'S PRODUCTS AND SERVICES IN THE MARKETPLACE, COMPETITIVE FACTORS,
CHANGES IN REGULATORY ENVIRONMENTS AND OTHER RISKS DETAILED IN THE COMPANY'S
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THESE FORWARD LOOKING STATEMENTS, THE COMPANY UNDERTAKES NO OBLIGATION TO
UPDATE THESE STATEMENTS FOR REVISIONS OR CHANGES.
SOURCE ThermoEnergy Corporation
Dennis Cossey, +1-501-376-6477
