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 franchisee.
- 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 East.
- On December 31, 2010, Redishred acquired the Proshred Wisconsin business.
- 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 correct.
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 forward-looking statements.
For further information: For further information:
Chief Executive Office
Phone: (902) 429-2437 Fax: (905) 812-9448