US BioTec, Inc. (PINKSHEETS: USBO), an emerging player in the rapidly growing bio-chemical sector of the annual multi-billion dollar industries related to agriculture, lawn and garden, and golf course products, announces today it has executed a Memorandum of Understanding (MOU) with the PHS Group, Inc. for the purchase of all the outstanding shares of PHS Group.
The PHS Group, Inc. is an energy company that owns four (4) subsidiaries. These subsidiaries include: a crude oil refinery; a petroleum transport company; a wholesale lubricants division that is a state distributor of Shell, Pennzoil and Quaker State products; and an EPA licensed environmental services company.
The agreement states a mutually agreed purchase price for the buyout of the PHS Group, Inc. stock. In addition, the PHS Group has committed to allow US BioTec, Inc. the right to perform any and all necessary due diligence related to the acquisition of the PHS Group's assets, including but not limited to the review of all financial records, corporate records, legal data, status of environmental regulations, etc.
The corporate history of the PHS Group, Inc. and its predecessor company can be traced back to 1932. The company currently has approximately 160 employees.
Earlier this quarter, US BioTec announced the creation of US BioTec Energy Services Corp. This subsidiary of US BioTec, Inc. was created specifically to handle business related to energy transactions. This MOU is the first major action taken by US BioTec Energy Services Corp.
"For the past several months, we have relied heavily on the expert advice and backing of a number of very experienced legal, financial and industrial advisors and backers in order to put this deal together. The planned acquisition of PHS Group should prove to be a major milestone for US BioTec and its shareholders. We expect it to be the first significant step in the evolution of our company as we work harder than ever to grow USBO into the dynamic corporation we have always envisioned it could and would be," states Jimmy Joyner, CEO of US BioTec.
"The addition of our trucking subsidiary, TelStar Logistics Corp., added a new dimension to our company back in 2005 while also providing USBO with a new revenue stream. We believe that the successful acquisition of PHS Group will rapidly fuel growth at US BioTec through a sizable new revenue stream. Significantly higher cash flow should, in turn, allow us to fund long-awaited expansion of our core bio-chemicals operations as well," adds Joyner.
About US BioTec
US BioTec was established to profitably develop, manufacture, market and distribute bio-degradable, non-toxic and non-carcinogenic products to agriculture, the commercial turf industry, forestry, golf courses, professional landscapers, nurseries and mass market retail lawn and garden markets. USBO is striving to be the U.S. market leader in the expanding bio-chemical sector of the annual multi-billion dollar agricultural chemical marketplace. It has already begun taking the necessary steps to negotiate distribution and joint venture contracts to facilitate its nationwide expansion over the next few years. The Company's products are designed to rehabilitate soils, repel insects and increase crop (plant) yields through environmentally friendly alternatives to toxic man-made pesticides and caustic synthetic fertilizers and herbicides. The company also operates an OTR trucking fleet through its TelStar Logistics Corp. subsidiary and is exploring entry into the petrochemical/alternative fuels market through its newest subsidiary, US BioTec Energy Services Corp. To learn more about US BioTec and its products,
Certain statements in this news release may contain forward-looking information within the meaning of the Federal securities laws. All statements, other than statements of fact, included in this release may include forward-looking statements that may involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.
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