US companies to collaborate to establish JV projects to recycle waste into plastic and oil

29-Sep-11

Green EnviroTech Holdings Corp. has signed a Letter of Intent (LOI) with 5 Stone Green Capital, LLC (5 Stone), a fund manager based in New York. Under the LOI, both parties agree to collaborate to establish joint venture projects in recycling waste into plastic and oil within the United States and internationally, the initial focus being in the United States. The initial project identified for collaboration under the LOI is the development of a plant in Sheboygan, Wisconsin, that is anticipated to require USD 5 million in the form of convertible debt financing, or alternative financing that will acquire the building or equipment required for the plant. Under the LOI, 5 Stone has a right of first offer to provide financing on subsequent GETH projects where shredder residue will be consumed, plus the right to participate in any future financing of projects for shredder residue recycling for up to 20% of the total financing. 5 Stone will work closely with GETH in strategic development and will utilize their expertise to maximize governmental support and to locate future sites. Gary De Laurentiis, Chairman and CEO of GETH, said, "By working with 5 Stone GETH benefits from both their financing and expert knowledge of developments in the environmental field. I look forward to a very meaningful partnership with them."