MISSISSAUGA, ON, Dec. 31 /CNW/ - Redishred Capital Corp ("Redishred")
(TSXV: KUT) is pleased to announce that it has completed the
acquisition of the Proshred Wisconsin business from an existing
franchisee for an aggregate purchase price of $1,625,000. With this
acquisition, Redishred will operate its third corporately owned
location under the PROSHRED® banner.
Redishred has drawn $1,550,000 from its line of credit facility to
finance the purchase of the Proshred Wisconsin assets.
In conjunction with the purchase of the business, the franchisee will
withdraw from the legal complaint that they and three other franchisees
filed against Redishred's subsidiary in June 2010.
Mr. Robert Crozier, CEO of Redishred noted that "we are very pleased to
conduct our third acquisition in 2010. With this acquisition we plan
on continuing to grow our revenues, cash flows and service coverage in
Wisconsin. We are also planning on working with our current Chicago
franchisee on developing regional accounts that require service in both
Wisconsin and Illinois." Mr. Crozier further noted that "We will
continue to contribute to the Milwaukee and Madison communities by
hosting a number of community shredding events throughout 2011."
2010 Highlights for Redishred Capital Corp:
System sales in our PROSHRED® system for the first nine months of 2010 were $9.7 million,
representing an increase of 39% over the same period in 2009.
On April 30, 2010, Redishred acquired the Proshred Syracuse business,
marking Redishred's first corporate location.
On June 30, 2010, Redishred acquired the Proshred Albany business, which
was successfully integrated with the Syracuse location.
For the first five months of operations, the combined Syracuse and
Albany locations generated $410,000 in sales and $75,000 in income.
On July 1, 2010, the Denver, CO franchise was resold to a new
On July 26, 2010, Redishred awarded the San Diego, CA franchise,
operations commenced in October 2010.
On November 15, 2010, Redishred entered into an exclusive licence
agreement with Averda International FZ-LLC to operate the PROSHRED® and REDISHRED business platform in 15 countries and four territories in the Middle
On December 31, 2010, Redishred acquired the Proshred Wisconsin
For the first 9 months of 2010, Redishred, through the PROSHRED® system saved 232,000 trees and recycled 15,480 tonnes of paper.
Redishred Capital Corp. is the owner of the PROSHRED® trademarks and intellectual property in the United States. PROSHRED® shreds and recycles confidential documents and proprietary materials
for thousands of customers in the United States in all industry
sectors. PROSHRED® is a pioneer in the mobile document destruction and recycling industry
and has the ISO 9001:2000 certification. It is PROSHRED®'s vision to be the 'system of choice' and provide shredding and
recycling services on a global basis.
Note: The TSX Venture Exchange has neither approved nor disapproved of
the information contained herein.
This news release contains forward looking statements that reflect the
current expectations of management of Redishred and Redishred's future
results, performance, achievements, prospects and opportunities.
Wherever possible, words such as "may", "will", "estimate", "believe",
"expect", "intend" and similar expressions have been used to identify
these forward looking statements. These statements reflect current
beliefs and are based on information currently available to management
of Redishred. Forward looking statements necessarily involve known and
unknown risks and uncertainties. A number of factors, including those
discussed in the 2009 management discussion and analysis under "Risk
Factors", could cause actual results, performance, achievements,
prospects or opportunities to differ materially from the results
discussed or implied in the forward looking statements. These factors
should be considered carefully and a reader should not place undue
reliance on the forward looking statements. There can be no assurance
that the expectations of management of Redishred will prove to be
In particular, certain statements in this document discuss Redishred's
anticipated outlook of future events. These statements include, but are
not limited to the development of new regional accounts in Wisconsin
and Illinois which is subject to the identification of clients that
require service in those markets that are economically feasible to
service in those geographies.
Readers are cautioned that such forward looking statements are subject
to certain risks and uncertainties that could cause actual results to
differ materially from these statements. Redishred can give no
assurance that actual results will be consistent with these
SOURCE REDISHRED CAPITAL CORP.
For further information: For further information:
Redishred Capital Corp. (TSX.V - KUT)
Jeffrey Hasham, CA
Chief Financial Officer
Phone: (416) 849-3469 Fax: (905) 812-9448
Chief Executive Office
Phone: (902) 429-2437 Fax: (905) 812-9448