SCOTTSDALE, AZ, Dec. 18, 2013 /CNW/ - RDX Technologies Corporation ("RDX" or the "Company") (TSXV: RDX, OTCQX: RGDEF, FSE: RL7) a technology driven company operating in the waste water industry,
today announced the launch of its Industrial Franchising Program for
waste water owners and operators in the United States.
RDX Technologies Corporation announces the launch of its Industrial
Franchising opportunity in the United States, which provides an
opportunity to own and operate RDX equipment and systems, for qualified
owners and operators of waste water collection or treatment plants in
the U.S.. The Industrial Franchise opportunity will also be made
available to waste water generators that produce in excess of 10,000
gallons per day of industrial process or waste water.
The Company has been developing a beta testing program since July of
this year, concentrating on the Company's waste water mining
operations. Water mining operations produce materials that can be
converted to fuel, and then delivered to RDX energy customers. The
Company will be highly focused in developing franchises within the
waste water industry that center on interceptor, food processing and
packaging, slaughter operations; as well as franchise areas where water
recycling has developed above normal economic value for the Company,
including oil and gas operations where water is not only to be treated,
but then sold for reuse. Each location, (operation) will be sold and
The Company has hired legal counsel that specializes in franchise
regulations to guide the Company through registrations and franchising
RDX has been in confidential discussions with potential franchise
operators since July of this year, and conducted a "beta" test sale in
the second fiscal quarter of this year. Franchise location and planning
in Virginia, North Carolina, South Carolina, Georgia and Florida are
well developed at this time. In addition, the Company has chosen to
concentrate initial locations at or near RDX energy customers,
currently located in Virginia, South Carolina Texas, and Florida.
Priority is given to locations that are currently operating waste water
facilities, and companies that operate waste water pumping fleets.
Franchise costs and operating expenses can vary greatly from location to
location, and are based on population, transportation costs, labor
costs and regulations. The Company estimates that most Industrial
Franchises will be contracted between $ 740 thousand to $ 2.2 million
dollars per location. The average facility size offered by RDX will be
25,000 to 250,000 Gallons per day of treated waste water.
The Company has developed a back log of nearly $ 9MM, for five beta
locations, in the Western U.S., which operating equipment is expected
to be completed and delivered this year. To date, the Company is giving
guidance of 26 location openings for calendar year 2014. Commitments
for locations in 2014 are expected to increase, but factors such as
regulatory filings, securing locations, and meeting local water
discharge regulations may delay specific sites as those sites are
developed. The beta locations include a mix of currently operating
waste water plants and new locations. The first beta group locations
are not franchised, but straight sales of operating equipment, under
license agreement. The beta operating locations for the current quarter
are currently serving approximately 600 waste water generators.
Franchise locations will be developed but not sold until all Federal and
State required disclosures are completed, and filed as required by law.
The Company expects to have completed registration requirements no
later than mid-February of next year. Certain States with complex
registration requirements may exceed the February timeframe.
The Company has set a specific goal of opening 300 Industrial Franchise
locations (including the five beta locations announced today) through
the end of the 2016 calendar year. The Company wide goal is based on
the Company's estimation of the growth of energy customers and current
high demand for RDX methyl ester based liquid fuels. The Company sees
substantial growth opportunities in 2014 and beyond in areas not served
by pipeline or compressed natural gas or in temporary and transient
power and heat delivery installations.
As locations are developed and sold, the franchisee and operator will be
announced, but specific locations will not be made public until after
real estate and permitting efforts are completed by the franchisee and
operator. The Company has also developed franchise locations on RDX
energy consumer locations and those will be announced as sold, but not
before specific permitting by location is completed.
RDX has entered into developmental agreements for two large municipal
water treatment facilities; one located in Suffolk County, New York,
and one in Odessa, Texas. These municipality locations are not a part
of the Industrial Franchise program at this time. Currently, municipal
locations are owned and operated directly by RDX, due to the
substantial waster volumes and operating conditions at these plants.
All RDX franchisees and operators are required to be licensed or
permitted in the jurisdiction in which they will be operating. RDX will
begin Level I waste water operator training in Scottsdale, Arizona and
Deaver Wyoming starting in January and June of 2014 respectively. RDX
training will center on best practices, and specific operation of RDX
technology as permitted and licensed in the United States. The program
is taught in on campus segments lasting from three to ten days. Initial
training for operators is eighteen days of classroom and in practice
training. The entire Level I course package takes one year to complete.
The Company would also like to announce at this time the promotion of
Douglas C. Bean to Vice President of Business Development, as of
January 1st, 2014. Mr. Bean is currently an interim Business Manager for the
Company's Ridgeline Energy USA Division, and has been employed with the
Company for about three years. Doug began his RDX career in developing
waste water customers on a direct basis for the Company's Western U.S.
Division. Doug will be responsible for the development of the
Industrial Franchise sales team in North America and delivery of
effluent material for liquid fuel refining to the RDX Energy Division.
Mr. Bean will also head the Company's regional and national account
efforts in specific development areas such as food processing and waste
water interceptor customers.
Dennis M. Danzik, RDX CEO stated; "I would also like to specifically
acknowledge Doug Bean for his dedicated service and well deserved
promotion. I have had the privilege of working with Doug for nearly
twenty years and he consistently delivers on a variety of managerial
levels. I also want to take the time to acknowledge Scott Havrisik, our
VP of Business Development and Bob Everett, Manager of our Energy
Division for a year of very hard work that has produced a who's who of
energy customers for RDX during the past year, the year ahead and
"This announcement concludes nearly a year's work in developing a
program that was kept highly confidential. A program that would not
only launch RDX to the next level in the waste water industry, but
allow RDX the opportunity take full advantage of our first to market
efforts in commanding development of waste water resources where energy
is the by-product. In our second quarter this year, we conducted a sale
and our system under license as a beta test to develop a structure for
our Industrial Franchise Program. I am pleased to report that the
effort is successful and taking shape. Our designs and manufactured
equipment are robust, permitted in multiple jurisdictions, and
operating very well. The RDX focus is water, our product is liquid
fuels. Our job is now scale and from that; shipped and billed goods and
services. Our management team here at RDX is very pleased with the past
year and how our team has remained focused, concentrated on
consistency, reduced costs, and positioning the Company for our
financial growth in 2014."
A complete business presentation and several videos will be available on
the Industrial Franchise Program on the Company's website at www.rdxh2o.com over the next several weeks.
The Company will host a business update conference call on Thursday,
December 19th at 11:00 a.m. Eastern Time.
Interested parties can access the conference call by dialing
(877)-407-8133 for U.S. callers or (201)-689-8040 for international
callers, or listen via a live Internet webcast on the Company's website
A teleconference replay of the conference call will be available
approximately one hour following the call, through midnight Thursday,
January 2, 2013, and can be accessed by dialing (877)-660-6853 (U.S.
callers) or 201-612-7415 (international callers) and entering
conference ID: 13573078. A webcast replay of the conference call will
be accessible on the Company's website at http://www.rdxh2o.com/ for 90 days.
ON BEHALF OF RDX TECHNOLOGIES CORPORATION
"Dennis M. Danzik"
Dennis M. Danzik, CEO
"Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this news
release. This news release may contain forward-looking statements.
Forward-looking statements address future events and conditions and
therefore, involve inherent risks and uncertainties. Actual results may
differ materially from those currently anticipated in such statements.
Such information is subject to known and unknown risks, uncertainties
and other factors that could influence actual results or events and
cause actual results or events to differ materially from those stated,
anticipated or implied in the forward- looking information. Readers are
cautioned not to place undue reliance on forward-looking information,
as no assurances can be given as to future results, levels of activity
SOURCE: RDX Technologies Corporation
For further information:
David Waldman at Crescendo Communications