REDISHRED CAPITAL CORP. ANNOUNCES ACQUISITION OF PROSHRED WISCONSIN
December 31 2010 - 4:01PM
PR Newswire (Canada)
MISSISSAUGA, ON, Dec. 31 /CNW/ -- 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. o 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. Services 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. To view this news release in HTML
formatting, please use the following URL:
http://www.cnw.ca/en/releases/archive/December2010/31/c8235.html
pRedishred Capital Corp. (TSX.V - KUT)br/ Jeffrey Hasham, CAbr/
Chief Financial Officerbr/ a
href="mailto:Jeffrey.hasham@redishred.com"Jeffrey.hasham@redishred.com/abr/
a href="http://www.redishred.com"www.redishred.com/abr/ Phone:
(416) 849-3469 Fax: (905) 812-9448/p pRobert Crozierbr/ Chief
Executive Officebr/ a
href="mailto:Robert.crozier@redishred.com"Robert.crozier@redishred.com/abr/
Phone: (902) 429-2437 Fax: (905) 812-9448/p
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