Message #16 From:
NewsBot Date: September 14, 2007 05:48:51 AM
NewGen Announces Completion of Definitive Strategic Consulting Agreement with APPCO
Consulting Agreement and Biofuel Supply Agreement with APPCO Provides
NewGen Platform for Increased Revenue through Expanded Biofuels
Distribution
NewGen Technologies, Inc. (“NewGen”)
(OTCBB: NWGNStocks Forum) announced today that it and Titan Global Holdings, Inc. (“Titan”)
completed a definitive Consulting Agreement which will become effective
upon Titan’s acquisition of Appalachian Oil
Company (“APPCO”),
the final closing of which is scheduled to occur within 72 hours. NewGen
had previously announced this consulting agreement on July 25, 2007.
“NewGen is strategically positioned to be the
leader in renewable and environmentally friendly biofuel supply and
distribution from our own fuel terminals out to wholesale and retail
under one umbrella in the Southeastern United States,”
said NewGen Chairman and CEO Bruce Wunner. “The
completed agreements provide us with ongoing revenue and the exclusive
right to supply biofuels long-term to APPCO, which was a synergy we
sought at the time we initially bid for APPCO. We believe this strategic
relationship with Titan and APPCO will benefit NewGen, ReFuel America
and our shareholders.”
Wunner added, “NewGen plans to capitalize on
APPCO’s existing extensive distribution
network of more than 160 locations and its 80 years of operational
expertise. NewGen will now aggressively focus on the ReFuel America fuel
terminal revitalization, expansion and upgrades to also facilitate
blended biofuels, including ethanol and biodiesel, as well as premium
gasoline and diesel fuel distribution initially into the Charlotte, NC,
Spartanburg, SC and Columbus, GA markets, as well as other target
markets in the Southeastern U.S..”
Other key details of the agreements reached with Titan and APPCO as
previously announced are as follows:
In exchange for NewGen's cooperation with Titan's efforts to purchase
APPCO and other consideration, Titan agreed to reimburse NewGen $1.3
million for good faith deposits previously paid by NewGen to APPCO
and other APPCO related professional fees and expenses incurred by
NewGen. Payments are to be made at the APPCO closing, which is set to
occur within 72 hours.
NewGen will receive $600,000 annually under the consulting
agreement to provide advice on strategic and operational business
matters related to biofuels and related areas. Payments will be made
monthly commencing at the APPCO closing.
NewGen’s fuel distribution subsidiary
ReFuel America becomes the exclusive long-term supplier of
biofuels including renewable and environmentally friendly ethanol and
biodiesel products for APPCO. Term of agreement is for a period of 10
years and it is estimated that APPCO’s
requirements for biofuels will be substantial given its current
distribution of over 225 million gallons of fuel products per year
today, and will grow as the company grows as well.
NewGen’s strategic business plan enables the
Company and its subsidiaries to become a leading global fully integrated “Fields-to-Wheels™”
manufacturer, blender, supplier, and distributor of premium biofuels and
petroleum blends that dramatically reduce the environmental and economic
impacts of world transportation fuel consumption. NewGen believes it has
developed a slate of high-quality fuel products by utilizing
technologies that allow for more complete fuel combustion, reduced
emissions and the means to deliver them to the customer at the best
possible price.
The vision of NewGen and ReFuel America, NewGen’s
wholly-owned U.S. distribution subsidiary, is a world less dependent on
petroleum-based fuels, using secure, renewable, homegrown fuels which
better preserve our most important resources –
the air we breathe and water we drink.
Additional information can be found at the Company’s
Web sites: www.newgenholdings.com
& www.refuelamerica.com
Investor Information -- To request investor information and receive
Company news and e-mail updates, please visit our Web site at: http://www.b2i.us/irpass.asp?BzID=1316&to=ea&s=0
Safe Harbor Statement Under the Private Securities Litigation
Act of 1995 - With the exception of historical information, the matters
discussed in this press release are forward-looking statements that
involve a number of risks and uncertainties. The actual future results
of NWGN could differ significantly from those statements. Factors that
could cause actual results to differ materially include risks and
uncertainties such as the inability to finance the company’s
operations or expansion, inability to hire and retain qualified
personnel, changes in the general economic climate, including rising
interest rate and unanticipated events such as terrorist activities. In
some cases, you can identify forward-looking statements by terminology
such as “may,” “will,”
“should,” “expect,”
“plan,” “anticipate,”
“believe,” “estimate,”
“predict,” “potential”
or “continue,” the
negative of such terms, or other comparable terminology. These
statements are only predictions. Although we believe that the
expectations reflected in the forward-looking statements are reasonable,
such statements should not be regarded as a representation by the
Company, or any other person, that such forward-looking statements will
be achieved. We undertake no duty to update any of the forward-looking
statements, whether as a result of new information, future events or
otherwise. In light of the foregoing, readers are cautioned not to place
undue reliance on such forward-looking statements.For further
risk factors see the risk factors associated with our Company, review
our SEC filings.
