CELEBRATION, Fla., April 26, 2010 (GLOBE NEWSWIRE) -- International Power Group, Ltd. (Pink Sheets:IPWG), a provider of waste-to-energy solutions, including waste-to-energy development and waste-to-energy technologies, announced today that its Board of Directors has unanimously approved the formation of a new committee of the Board to pursue the Company's strategic options, with regard to a proposal from Green Energy Development, Inc. (GED), a company formed by David R. Ames, of Ames Enterprises, Atlanta GA, to acquire the Company through a merger for approximately $30 million of stock that would be listed on the AMEX, NASDAQ or similar exchange. Mr. Ames is the Chief Executive Officer of GED.
The Board committee consists of the Company's Chairman, Dr. Daniel Conte, the Company's CEO, John Benvengo, Board member Jerry Pane and Board member Robert Astore. The committee will negotiate a formal merger agreement with GED and make a recommendation regarding the formal merger agreement to the full Board of Directors, as it considers the Company's financial and strategic alternatives to enhance shareholder value.
The Board of Directors also has commissioned the services of an independent valuation firm to determine the Company's fair valuation, inclusive of the Koryclska, Poland project and other opportunities available to the Company. The merger with GED will be subject to an agreed-upon valuation and shareholder approval.
If approved, John Benvengo, IPWG's current CEO will become part of GED's management team and continue his work with regard to the Poland project and assist GED in the development of future Waste-to-energy facilities world-wide.
CEO John Benvengo stated, "I believe the GED proposal brings great value to the IPWG shareholders and will enable IPWG shareholders to receive shares from a new entity that are fully registered with the SEC and listed on a more prominent exchange than we are on now. This will allow those shareholders who want to participate as on-going shareholders in an exchange-listed company to do so, and those shareholders who prefer to sell their shares to have an active market in a new company to do so as well. I look forward to working with the committee members to help bring this transaction to fruition." Benvengo further stated, "GED is strategically and financially positioned I believe to assist me in fully executing on the Poland project we have worked hard to put together. I also expect GED to afford me the ability to build shareholder value in projects well beyond the current Poland project."
International Power Group, Ltd. is in the business of the development and implementation of new cutting-edge technologies that maximize recycling values while providing environmentally safe disposal of solid waste and hazardous materials. Through the application of these new technologies, solid wastes and hazardous materials can be minimized to their maximum extent while producing significant secondary benefits such as clean energy and clean water. Founded in 2004, IPWG is a publicly traded company, listed on the Pinksheets.
FORWARD-LOOKING STATEMENTS
This document contains 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. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding the new Board committee, the GED proposal, the Company's strategic alternatives and GED's ability to assist in the Poland project and build shareholder value in projects well beyond the Poland project. All forward-looking statements in this press release are made as of the date of this press release, and IPWG assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements and include the risk that a transaction as described will not be effected, that the development of the waste system in Poland may not proceed as anticipated or that the project financing will remain in place for the duration of the project.