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Junior Renewable Energy Company Lands $61.3 Million Contract with Major Supermarket Chain
By: AllPennyStocks.com News
January 5, 2012
Some companies sit right on the edge of a potential explosion in valuation, just waiting for a catalyst. Seattle, Washington-based ecoTECH Energy Group Inc. looks to be one of those companies currently just out of the sightline of the investment community and presenting a unique opportunity.
A diversified outfit chock-full of “green” technologies, ecoTECH Energy Group Inc. (OTCBB:ECTH) is more than just a renewable energy company developing biomass-fueled power stations that produce renewable and sustainable enviro-friendly energy products that it holds itself out to be. Their Garbage-to-Concrete (“Gar-Crete) processing system earned them a $36 million contract with Hospital Medical Express of Ecuador (HosMedEx S.A.) late in September of 2011. The system is exactly what it sounds like; a system that converts trash into reusable concrete for industrial products such as culverts, pipes and barriers where infrastructure is uneconomic or unavailable. The product of the combined systems is pozzolanic ash for high strength, low mass cast concrete products. Although it is just gaining traction, the Gar-Crete system could prove a valuable resource worldwide as an overabundance of trash has created massive disposal issues globally, not to mention the subsequent environmental impact.
Today, ecoTECH Energy released news of a large contract putting to use another of its cutting-edge technologies. ecoTECH has developed a proprietary biomass to energy system and has licensed proven fresh food production systems that deliver quality and quantifiable advantages in the sector of fresh fish and vegetable production without artificial chemical or fossil hydrocarbon pesticides, herbicides or synthetic growth inducements (such as fertilizers and hormones) utilizing indoor aquaponics (hydroponics & aquaculture combined) methodologies.
The Company announced that its proprietary biomass energy and fresh food systems division has received a five-year supply purchase contract of a minimum of $12.26 million dollars per year – for a total contract of $61.3 million - from one of Canada's largest supermarket chains.
A look at the 8-K filing with the Security and Exchange Commission regarding the definitive agreement reveals some facts that are eye-opening regarding the long-term potential behind the already sizeable contract.
As is often customary, the client is unnamed in the press release for legal reasons. In this case, it should be noted by investors that the agreement is with Overwaitea Food Group Limited Partnership, a division of the Jim Pattison Group of Companies, according to the SEC filing. With more than 31,000 employees and annual sales around $7 billion, the Jim Pattison Group of Companies is one of the largest companies overall and the third-largest privately held firm in Canada. All falling under the umbrella of the Jim Pattison Group, Overwaitea Food Group operates more than 120 stores under the Save-On-Foods, Overwaitea Foods, Urban Fare, Cooper's Foods, PriceSmart Foods and Bulkley Valley Wholesale banners.
Given the fact that the 22-acre McBride, British Columbia facility that will be used to fulfill the supply contract is slated to have the capacity to produce over $50 million in food sales annually through its five megawatt power station, this contract leaves a great deal of room for expansion from this single facility. The McBride plant will include a 24/7 biomass fueled combined heat and power generating facility to operate in a zero-emission manner. ecoTECH has publicly stated that it intends to build up to five similar facilities across North America in the next five to seven years. With the new contract from a client that is only scratching the surface of potential order magnitude and the real possibility of other major grocers looking for services, it appears that the ball is starting to roll for ecoTECH and yet the market cap still fluctuates around $40 to $60 million. This, of course, goes without discussing the usages for the biomass fuel technology on a grander scale or the possibility of Gar-Crete contracts that gives ecoTECH as an investment a flavor all its own as compared to most other OTCBB-listed companies. Proper due diligence is, as always, encouraged.
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