RG Global inks MOU with Texas Consortium
RG Global announced the execution of a Memorandum of Understanding (MOU) with a Texas Consortium, FBE, whereby FBE has agreed to purchase RG Global's Wyoming Plant that utilizes CFS Technology for processing discharge water for Coal Bed Methane (CBM) mining. RG Global, upon the purchase of the Plant, will grant a license to FBE to use the CFS Technology to operate the Plant, as well as licensing all of the US rights under the CFS Technology...
• RG Global to license its proprietary CFS technology and sell water treatment plant
ANAHEIM, CA, Dec. 23, 2008 -- RG Global, which owns CFS Technology used for processing discharge water for Coal Bed Methane (CBM) mining, is pleased to announce the execution of a Memorandum of Understanding (MOU) with a Texas Consortium, FBE.
Under the terms of the MOU, FBE has agreed to purchase RG Global's Wyoming Plant that utilizes CFS Technology for processing discharge water for Coal Bed Methane (CBM) mining. RG Global, upon the purchase of the Plant, will grant a license to FBE to use the CFS Technology to operate the Plant, as well as licensing all of the US rights under the CFS Technology. FBE will also manufacture and operate all future plants in the US.
Transition to Licensing/Royalties Model
Grant King, RG Global's CEO and President, commented, "We are transitioning from a build/own/operate (B/O/O) business model for our CBM water treatment process to that of a strategic licensing and marketing company. RG Global will move from owning and operating plants for CBM water treatment to a marketing and sales role with FBE in the US. RG Global expects to roll out this new business model on a global basis that will permit RG Global to utilize its CFS Technology in a partnership role with some of the largest companies in the industry."
Increase shareholder value
King noted that under the new business plan, RG Global expects to generate revenues without the heavy cash requirements that have inhibited the company's growth. With this new direction, RG Global will be able to focus its efforts on advanced research and development for strategic acquisitions of both technology and synergistic partners. This enhanced business model will benefit both the company and its shareholders by allowing it to compete effectively on a global scale utilizing the principles of sustainable development. RG Global believes this new direction will allow it to improve its financial performance and increase shareholder value.
While there are several competing technologies, many of them rely on a system of relocating contaminated discharge water from one location to another without due regard to the long term consequences and potential threats to local wildlife, vegetation and fresh water supplies. RG Global's CFS Technology provides a sustainable solution that solves CBM discharge problems, resulting in clean water that eliminates the burden of cleanup operations on future generations. CFS Technology not only reduces the environmental impact of discharging CBM water directly into local streams and rivers, but does so at a significant savings compared to other technologies currently utilized in this industry.
FBE is a consortium, comprised of three Texas-based companies, that specializes in financing, engineering and building facilities for the petroleum industry. As its US partner, FBE will allow RG Global to focus on the sales and marketing of its CFS Technology, while becoming a technological leader for the reclamation of CBM discharge water
CBM is one of the fastest growing sectors in the field of alternative energy. CBM gas is processed though the removal of trapped gas located between the coal and water table. The gas is pumped out at a very low operating cost, with a very high purity level. Estimates show that there are over 700 trillion cubic feet of CBM gas in the US. To date, a major factor that has restricted CBM mining has been the disposal or processing of the discharge water that is produced as a byproduct of the CBM gas extraction. By 2010, experts expect there to be more than 50,000 wells in Wyoming alone. Each well produces an average of 6.2 million gallons of discharge water per year.
RG Global Lifestyles Inc. develops and markets innovative technologies for water purification and wastewater treatment.