ANAHEIM, Calif., Jan. 29 /PRNewswire-FirstCall/ -- RG Global (OTC Bulletin Board: RGBL) announced today that the company is on schedule for construction of its coal bed methane water treatment plant and discussed numerous projected growth areas for the Company.
Coal Bed Methane Water Treatment Plant On Schedule
RG Global's Catalyx Fluid Solutions (CFS) expects to complete construction by the end of February on its first plant employing the Catalyx Fluid Solutions ion exchange technology to treat water discharged during the harvesting of coal bed methane (CBM). Final commissioning of the plant should be completed by the end of March 2008. The plant, located in Wyoming, will remove excess sodium and other environmentally harmful minerals from the CBM-produced water as part of a previously announced five-year, $20-22 million gross revenue Build-Own-and-Operate contract with one of the largest CBM production companies in the U.S.
"Numerous energy production companies have expressed keen interest in our CFS technology and we are currently in negotiations for additional CBM water treatment plants in the U.S. and abroad," said Juzer Jangbarwala, RG Global CTO. "RG Global is in an excellent position to capitalize on the increased interest in coal bed methane as an unconventional fuel in many countries that are attempting to reduce their dependence on oil and coal."
Additional Water Treatment Applications
Water has been capturing headlines as an increasing valuable resource, particularly in drought-stricken areas and where there is widespread contamination in the water supply, causing skyrocketing demand for effective, cost-efficient water treatment technologies such as RG Global's CFS solution. CFS is in negotiations with multiple companies for additional applications of its ion exchange technology, which can be used to remove nitrates, arsenic, sodium and a wide variety of inorganic contaminants from water to make it suitable for human or animal consumption, irrigation and other uses.
"To accommodate the current and anticipated growth of our CFS division, late in 2007, RG Global relocated its headquarters to a larger, 10,000 sq. ft. facility in Anaheim," Mr. Jangbarwala noted. "Since that time, we've expanded our marketing and engineering staff to manage the increased interest in the CFS technology. We anticipate announcing additional CFS contracts resulting from our efforts in the current quarter."
$3 Million Insurance Settlement Received
RG Global received $3 million related to a claim on a key man insurance policy it held. A portion of the funds has been used to settle litigation with a previous holder of Company convertible notes. The remainder will be used to fund RG Global's continuing R&D and growth.
RG Global CEO Grant King said, "RG Global expects to have sufficient resources to successfully complete our transition from an R&D stage to commercialization of our intellectual property. We have used the insurance proceeds to eliminate convertible debt while covering normal operating expenses. More than 85% of the cost of our first CBM plant coming online during the second quarter 2008 has been paid for in cash. We anticipate our revenue stream will increase substantially starting 2nd quarter in 2008. Additionally, we are finalizing financing commitments from vendors, investors and prospective customers, which will enable us to fund and build more CBM plants rapidly upon receipt of plant contracts. We have designed the financing to minimize dilution and preserve shareholder value while enabling controlled expansion that will dramatically enhance revenues for RG Global."
About RG Global Lifestyles, Inc.
RG Global Lifestyles, Inc. develops and markets innovative technologies for water purification and wastewater treatment. Major energy production companies have selected RG's proven CFS technology to economically treat coal bed methane wastewater, making production of this plentiful, clean-burning gas more economically feasible and environmentally friendly. RG manufactures OC Energy(TM) brand energy drinks that boast a proprietary energy pack, natural vitamins and low sugar levels to intensify alertness without the typical crash. RG's Aquair(TM) atmospheric water generators produce purified water from air -- the ideal solution for military troops, disaster and drought-stricken areas and situations where drinkable water isn't easily accessible. For more information, visit http://www.rgglife.com.
Safe Harbor Statement
The statements contained herein that are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, risks associated with water generation products, risks associated with dependence on third parties, and other risks identified from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission. All forward-looking statements attributable to the Company, or persons acting for the Company, are expressly qualified in their entirety by these cautionary statements.
Contact: Julie Shepherd, Accentuate PR, (815) 479 1833,
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|SOURCE RG Global Lifestyles, Inc.|
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