Q2Power Technologies Inc. (OTCQB: QPWR), through its Q2Earth division, has signed a term sheet to acquire Environmental Turnkey Solutions LLC, providing general terms of the proposed transaction and an exclusivity period which can be extended through September 2017.
Naples-based ETS is one of the largest green waste hauling and compost manufacturing companies in Florida, with operations that span the state's west coast and plans to expand into two new facilities. ETS provides high quality soils to major customers that include Scotts Miracle-Gro and Old Castle, with current annualized revenue exceeding $7 million from tipping fees and end product sales.
"We are very excited to have the opportunity to work with Tony Cialone and his exceptional team at ETS," stated Q2's CEO, Christopher Nelson. "We believe ETS to be a leader in this field, with great focus placed on operational efficiencies, technology adaptation, and manufacturing of high quality soil products. Tony has demonstrated tremendous ability to expand their business organically and through strategic acquisitions and partnerships. We feel he and his team will be a great addition to the growing Q2 family."
"We are equally excited to be working with Chris, Kevin and the Q2 team towards a future combination of our companies," stated ETS' CEO, Tony Cialone. "We share the same vision of creating the preeminent compost manufacturing company in North America, and mission to provide sustainable soil products that help our planet. We think we can help build a great company together."
The principals of ETS have further demonstrated their commitment to the transaction by participating in Q2's recent Bridge Offering and committing to investing an additional $200,000 in a strategic follow-on round.
About Q2Power: Q2Power, through its Q2Earth division, seeks to become a leading manufacturer of compost and engineered soils from recycled waste for the agriculture, horticulture, construction and infrastructure sectors. Through a plan of acquisitions, strategic alliances, and organic growth focused on creating and marketing quality beneficial reuse end products, Q2 seeks to build the preeminent compost and soil manufacturing company in North America. The Company recently completed the first phase of a bridge financing that will expedite this business plan and operational transition, and has begun to wind-down its previous waste-to-energy R&D operations. Q2 intends to file its 10-Q for the first quarter of 2017 to regain "current filing" company status and OTCQB listing by the end of June.