General Environmental Management Strengthens Balance Sheet with Strategic Sale of GEM MTS

Dépèche transmise le 24 août 2009 par Business Wire

POMONA, Calif.--(BUSINESS WIRE)--General Environmental Management, Inc. ("GEM") (OTCBB: GEVI), a leading environmental and waste remediation company, today announces that it has sold the stock of its GEM Mobile Treatment Services, Inc. (GEM MTS) unit. Acquired by MTS Acquisition Company, Inc., GEM MTS will function independently with no disruptive transitory period.

In exchange, GEM received promissory notes in the aggregate amount of $5.6 million, the assumption by GEM MTS of approximately $1.0 million of accounts payable as well as future royalties. In an effort to reduce liabilities and thereby strengthen the balance sheet, the company has immediately assigned the consideration to CVC California, LLC, GEM's senior secured lender. GEM indebtedness to CVC will be reduced as GEM MTS services its indebtedness to CVC.

Tim Koziol, CEO of General Environmental Management, stated, “By substantially reducing our requirement to service our debt, we have increased our ability to take advantage of other opportunities. The sale of GEM MTS will also allow us to concentrate our focus on extracting the greatest value from resources we employ in the current economic environment.”

Mr. Koziol continued, “We are very pleased with the transaction that has taken place, as well as the sale price. Since our acquisition of GEM MTS in March of 2006, the unit has experienced tremendous growth under our leadership and we are very happy with the return on investment. However, as market dynamics change, we are adapting and will use our resources to best pursue GEM's long-term goals.”

About General Environmental Management, Inc.

General Environmental Management, Inc. (www.go-gem.com) is a full-service hazardous waste management and environmental services firm providing integrated environmental solutions managed through its proprietary web-based enterprise software, GEMWare, including the following service offering: management and transportation of waste; design and management of on-site waste treatment systems; management of large remediation projects; response to environmental incidents and spills; and environmental, health and safety compliance. Headquartered in Pomona, California, GEM operates five field service locations and one Treatment, Storage, Disposal facility (TSDF), servicing all markets in the Western U.S.


This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or development that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company's actual results to differ materially from those implied or expressed by the forward-looking statements. The Company assumes no duty whatsoever to update these forward-looking statements or to conform them to future events or developments.

Business Wire

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