E-Waste Systems signs $800,000 investment deal for China

E WASTE SYSTEMS
Greentech Lead Europe:E-Waste Systems Inc. (EWSI), an electronic waste management and reverse logistics company, has signed a Master License agreement for China, which includes an agreement for an investment worth $800,000, plus royalties and a minimum $5,000,000 sales commitment.In addition to the license agreement, the deal includes an investment of $650,000 in EWSI, via a new common share issuance at $0.08/share.

This agreement calls for an initial payment of $150,000 for an initial two-year license fee and two further licenses plus 2% royalty of annual revenues for each year with a minimum commitment of $5,000,000 in revenues during the initial term.

EWSI, with nationwide logistics coverage that includes every zip code in the Continental US, expands to China through their eWaste pure play brand with this agreement.

EWSI brings technology, regulatory knowledge, industry experience and market knowledge to the deal.  Tanke, a diversified holding company, brings its significant experience in China and its presence in environmental technologies to EWSI.

“We are thrilled to enter the market in China with this deal.  This is the fastest growing market in the fastest growing sector of all waste streams. The prospects for recycling in China are massive. After all, China is the world’s second largest producer of e-waste, next to the US,” said Martin Nielson , CEO of EWSI.

“This master license advances our global footprint as the leading eWaste pure play public company and is extremely important to secure our eWaste brand globally,” stated Mr. Nielson.

“To enter China, we needed a well connected and experienced partner who shares our passion for doing things right, and now we have that.  We have great confidence that subsequent expansion deals will follow very shortly,” added Mr. Nielson.

In 2011, some 162 million tons of e-waste, including nonferrous metals and electronics, was recycled in China, double the amount in 2005. The total value of these recycled products was 571.5 billion Yuan ($91.8 billion), up by 12.7 percent compared with 2010, according to Gao Yanli, secretary-general of the CRRA, the People’s Daily reported.

The emerging industry of e-waste has become a $100 Billion business according to Blumberg Associates. Many of the primitive electronic waste operations in China are toxic and antiquated.

Coastal areas in East China have become the world’s main center for treatment of e-waste. By 2020, 70 percent of the 500 million tons of e-waste processed globally every year will be processed in China, according to Communications Information News.

In addition to the license fees, the deal also includes an investment of $650,000 in EWSI, via a new common share issuance at $0.08/share.

“We are very excited and thrilled to enter into this relationship with EWSI, with our vast network through China, we want to immediately deploy EWSI eWaste brand because of its adherence to highest standards of eWaste processing.  We see EWSI as the only company with an integrated solution and which has the ability to build a quality eWaste brand we can depend on,” said Xiaoying Zhang , CEO of Tanke.

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