Green EnviroTech Holdings Corp. (“Green EnviroTech”, “GET” or the “Company”) is a publicly traded Delaware corporation under the symbol (GETH.OB). Green EnviroTech is a converter of waste plastic material and used discarded tires into products useable in industrial applications. These applications are primarily base plastic pellet material used by the plastic injection molding and extrusion industry and crude petroleum used by the major oil refineries. The Company has licensed technology capable of converting waste produced by the farming and automotive recycling industries into high grade plastic resins and crude oil.
The Company was established in 2008 and is headquartered in Riverbank, California. Recently the Company has created two subsidiaries: Green EnviroTech Riverbank, LLC, (“GETRB”) and Green EnviroTech Wisconsin, LLC, (“GET WISC”) in anticipation of opening two plants in Riverbank, California and Sheboygan, Wisconsin respectively. In addition, the Company has acquired a third subsidiary, Magic Bright Limited (“Magic Bright”), a Hong Kong based trader and distributor of plastics and other recyclable materials. The acquisition provides GET with immediate access to Magic Bright's vast distribution channels in Asian and European markets. Furthermore, GET has signed a Letter of Intent to open two more locations. The Company may open a Tupelo, Mississippi and Kansas City, Kansas location. These two new locations will enhance the Company’s ability to produce more oil from recycled tires.
There are three main categories of polymer based products which Green EnviroTech utilizes as feedstock: used agricultural plastics (“AG plastics”), Shredder Residue (“SR”) and discarded tires. AG plastics include plastic film used to aid in fumigation of crops and plastic mulch used to suppress weeds and conserve water; AG plastics are considered to be “low grade” plastics. SR is a waste product produced by metal recyclers, who shred automobiles and large appliances as a part of their metal recovery process. SR is comprised of the remaining material not recovered by the metal recyclers and is mainly comprised of mixed types of plastics (includes “high” and “low” grade plastics), some metals and rubber.
Green EnviroTech uses its patented “PlastExtract” process, which merges a series of licensed technologies already developed by third parties, to recover valuable materials from the AG plastics and SR it receives. Specifically, the PlastExtract process is designed to sort, clean and convert SR into high grade plastic resins and crude oil. Each individual stage of the PlastExtract process can be used independently. The “oil conversion process,” is used to convert AG plastics and other low grade plastics into oil.
Metal recycling companies in the United States generate approximately four million tons of shredder residue each year, most of which is sent to landfills. GET’s PlastExtract process is a welcomed alternative for metal recycling companies that are looking for ways to dispose of their SR easily, inexpensively and in an environmentally sensitive manner. In total, Green EnviroTech’s PlastExtract process reduces the amount of SR going to landfills by up to 40% creating considerable cost savings for metal recyclers and dramatically reducing the volume of materials going to landfills. Additionally, to reduce feedstock acquisition and transportation costs, GET co-locates its processing plants in close proximity to partner metal recycling facilities.
Green EnviroTech’s ability to recover high volumes of plastic from previously un-utilizable sources increases the amount of available recycled plastic in the market and reduces the demand for virgin plastics, resulting in the use of less energy, lessened greenhouse gas emissions and saved landfill space. According to the EPA, recycling plastic uses about 10% of the energy needed to make plastic from virgin materials and that recycling one ton of plastic saves 7.4 cubic yards of landfill space.
Green EnviroTech has also identified technology capable of converting discarded used tires into oil from a company based in East Asia. The technology is currently in operation in nine locations in East Asia. Green EnviroTech has announced that it is planning on establishing two tire recycling plants in the United States utilizing this technology.
GET has solidified product purchase and supply agreements for both of the products it produces. Specifically, GET has arranged for 100% of its oil produced to be purchased by its strategic partner. Together with one of its technology providers and customers, Ravago Manufacturing America a custom resin compounders and a recycler of both engineering polymers and basic commodity plastics, GET will produce compounded plastic resins using the feed stock from the PlastExtract process and distribute the finished materials directly from GET’s facility. Ravago’s technology will be used in stage 5 of the PlastExtract system. The company is negotiating with Ravago to purchase 100% of the compounded plastic material produced at the facility and re-market the material for a 10% commission.
Green EnviroTech Holdings Corp. has three wholly owned subsidiaries: Green EnviroTech Riverbank, LLC, (“GETRB”), Green EnviroTech Wisconsin, LLC, (“GET WISC”), and Magic Bright Limited (“Magic Bright” or “MB”). Each of these subsidiaries operates its own facility and/or operations. Green EnviroTech’s initial processing plants will be located in Riverbank, California and Sheboygan, Wisconsin. Plant build-out will occur in two phases with the Riverbank facility opening first, approximately six months after completion of this financing. The two facilities encompass 42,975 & 288,000 square feet respectively. GET also leases 1,100 square feet of office space in Riverbank which will serve as the Company’s corporate headquarters. With the acquisition of Magic Bright, GET will have 7 facilities creating a vast distribution center in China.
· Phase 1: Riverbank facility will convert agricultural and other types of plastic into crude oil.
· Phase 2: Sheboygan facility will demonstrate the Company’s large-scale end-to-end plastics recovery capabilities using its PlastExtract process. This facility will convert Automotive Shredder Residue (ASR) and other plastic waste into high grade compounded plastics for manufacturing purposes. It will also produce crude oil generated from low-grade plastic waste.
Magic Bright Facilities
Corporate headquarters are located in Kowloon, Hong Kong at 27 Lock Road, Tsimshatsui. Magic Bright leases 3 warehouses in Shunde, approximating 15,000 square feet each. MB’s pellet manufacturing plant in Shunde is approximately 20,000 square feet and is owned through a WFOE (Wholly Foreign Owned Enterprise). Magic Bright also has two locations in Tianjin Northern China which are termed “Public Warehouses” and such the company pays monthly fees for the space used. Offices in Hong Kong are 800 feet and are leased.
MB acquires 30% and 70% of its product from the US and Europe respectively. Magic Bright then transports its product to Hong Kong and into mainland China. From there, MB delivers the product to the 3 warehouses in Shunde, the Pellet Manufacturing plant in Shunde, the 2 warehouses in Tianjin and directly to the customers.
Magic Bright Limited is a leading Hong Kong based plastics recycler and distributor, generating over US $28M in annual revenues. MB has been in operations since 2004 with a simple business model of “Reduce, Reuse, and Recycle”, the company has been focused on plastic recycling from waste streams from the US, Europe and Southeast Asia. Magic Bright also recycles some paper and metal products. Magic Bright’s mission is to maximize the diversion of waste products from landfills in favor of recycling.