DGAP-News: MCW FUELS INC. (An MCW Energy Group LIMITED Subsidiary) ENTERS INTO BINDING AGREEMENT TO ACQUIRE WESTCO PETROLEUM DISTRIBUTORS.
(firmenpresse) - DGAP-News: MCW Energy Group Limited / Key word(s): Contract
MCW FUELS INC. (An MCW Energy Group LIMITED Subsidiary) ENTERS INTO
BINDING AGREEMENT TO ACQUIRE WESTCO PETROLEUM DISTRIBUTORS.
13.06.2012 / 11:30
---------------------------------------------------------------------
June 12th, 2012.
PRESS RELEASE: For Immediate Release.
MCW FUELS INC. (An MCW Energy Group LIMITED Subsidiary) ENTERS INTO BINDING
AGREEMENT TO ACQUIRE WESTCO PETROLEUM DISTRIBUTORS.
June 12th, 2012: Shediac, New Brunswick, Canada/Frankfurt, Germany: MCW
Energy Group Limited, a Canadian holding company with two business units
focused on value creation; i) MCW Fuels Inc., a well established
distributor of gasoline and diesel fuels to service stations in southern
California, and ii) MCW Oil Sands Recovery, LLC which owns an oil sands
extraction process that MCW is preparing to implement in the third quarter
of 2012, is pleased to announce that it has engaged Stonecap Securities
Inc. as lead agent to complete a private placement financing of
approximately $5,000,000 (the 'Private Placement'). The proceeds of the
Private Placement will be used to fund the final payment of MCW's first 250
bbl/d oil sands extraction unit (the 'Commercial Facility') to be located
in the Uinta basin of Utah, and for general working capital purposes.
Construction of the Commercial Facility has been completed and, subject to
the timing of the closing of the Private Placement, management of MCW
anticipates installation to begin early in the third quarter of 2012,
followed by first production approximately one month later.
The Agreement to acquire Western Petroleum (Westco) will be implemented in
two phases: The first phase details the assignment by Westco to MCW Fuels,
7 (seven) existing 76 Branded Reseller Distribution Agreements for a term
of ten years. The second phase of the Agreement is the assignment by
Westco to MCW Fuels, an additional 9 (nine) Branded Reseller Distribution
Agreements for the same ten-year term. MCW Fuels would become the sole
fuel supplier to a total of 16 Westco-supplied service stations located
throughout Southern California. The terms of this Agreement include a
total payment to Westco by MCW of $ 2,000,000 USD, of which the first
instalment of $ 1,000,000 USD would be due on or before June 15th, 2012,
which will secure the first 7 (seven) stations. The second instalment of $
1,000,000 USD would be due on or before January 31st, 2013. MCW has
secured $1,000,000 from existing lender.
'The acquisition of Westco's 76 Branded Reseller Distribution Agreements is
a very important benchmark in MCW Fuel's growth as we further solidify our
position as one of the top three fuel suppliers here in Southern
California,' stated David Sutton, CEO of MCW Fuels. The Company expects
that the Westco distribution acquisition will add approximately 25,000,000
gallons of fuel to its current annual sales volume of 1000,000,000 gallons
distributed throughout the state. $250,000 phase hold back will be held
unless minimum of 1,065,600 a month is not met in distribution.
About Westco Petroleum Distributors Inc.:
Westco is a Glendale, California-based independent wholesale distributor
which offers all grades of gasoline, diesel and clean fuels such as
biofuels. The Company provides retail branding programs, unbranded supply
contracts, fuel and inventory management and a web-based ordering/delivery
system on a 24x7 basis.
About MCW Fuels:
A Division of MCW Energy Group, this operation markets over 75 million
gallons of branded and unbranded fuels annually throughout Southern
California. The Company now supplies fuel to more than 200 branded and
unbranded service stations and provides commercial fuels to more than one
hundred businesses. It retains regional branding rights to major premier
brands such as 76, Valero, Alliance and 7Eleven chains (non-contract
branding projects) and offers signage assistance and state-of-the-art
accounting systems. MCW Fuels provides several value-added services
including credit card processing, inventory control systems and price
management services, and is involved in the marketing of alternative fuels
such as hydrogen. Through an aggressive program of mergers and
acquisitions such as Westco, the Company is planning to expand into other
regional U.S. markets. For more information on MCW Fuels and the MCW
Energy Group, please visit the corporate website at:
www.mcwenergygroup.com
For media/press information, please contact:
Paul Davey
MCW Energy Group,
334 Main Street, Suite 101,
Shediac, New Brunswick, E4P 2E5, Canada.
Tel: (001) 800-979-1897
Email: paul(at)mcwenergygroup.com
Note:
The information does not constitute an offer of or an invitation by or on
behalf of MCW Energy Group or any of its subsidiaries to subscribe for or
purchase securities of MCW Energy Group or any of its subsidiaries, but is
provided as a matter of record only.
In particular, the information contained does not constitute an offer of
securities for sale or solicitation of an offer to buy securities in the
United States of America. Securities may not be offered or sold in the
United States of America absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended.
End of Corporate News
---------------------------------------------------------------------
13.06.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
173780 13.06.2012
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 13.06.2012 - 11:30 Uhr
Sprache: Deutsch
News-ID 155906
Anzahl Zeichen: 8895
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 342 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: MCW FUELS INC. (An MCW Energy Group LIMITED Subsidiary) ENTERS INTO BINDING AGREEMENT TO ACQUIRE WESTCO PETROLEUM DISTRIBUTORS."
steht unter der journalistisch-redaktionellen Verantwortung von
MCW Energy Group Limited (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
