VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 14, 2017) – Gen III Oil Corp. (“Gen III” or the “Company“) (TSX VENTURE:GIII) is pleased to announce the signing of the Purchase and Sale Agreement (“PSA“) with Elbow River Marketing Ltd. (“Elbow River“), for the majority of Gen III’s finished products from our first re-refinery being constructed in Bowden, Alberta.
Under the terms of the PSA, Elbow River will purchase the majority of Gen III’s Bowden plant production and provide rail and truck transportation from the Bowden plant to Elbow River’s customers. Based on independent third-party marketing studies, and today’s commodity market prices, Gen III estimates total sales over the initial five-year term of the PSA to be in excess of seven hundred and sixty million dollars ($760MM). In March, the Company previously reported estimated annual recurring revenue of $159MM, with EBITDA in excess of $100MM. *EBITDA is a non-GAAP measure. Revised first year projected sales, based on continually rising commodity pricing, are now $168MM.
Company CEO Greg Clarkes reiterated “We are proud to enter into this agreement with Elbow River as their reputation, expertise and stature in the lubricant, marketing and distribution industry in North America assure ourselves, and our shareholders, the long-range security that our high-quality base oils will be marketed by a premier corporation that will see us realize maximum value for our products”.
About Gen III Oil Corporation
Gen III Oil Corporation is an innovative oil processing company with the most advanced re-refining technology in the industry, which will produce large quantities of Group III and Group II+ base oils. Gen III is developing their first full-scale facility in Bowden, Alberta with scheduled production beginning in Q4 of 2018.
On Behalf of the Board of Gen III Oil Corporation
Greg Clarkes, Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of Gen III Oil Corporation.
*EBITDA is a non-GAAP measure. Net income, a GAAP measure, would reduce projected EBITDA by financing costs, depreciation and income taxes. This news release, in particular the information in respect of projected revenue, recurring annual revenue and annual recurring EBITDA contains Future Orientated Financial Information (“FOFI”) within the meaning of applicable securities laws. The FOFI has been prepared by management to provide an outlook of our proposed activities and potential results and may not be applicable for other purposes. The actual results of our proposed operations and the projected results may vary from the amounts set forth herein, and such variations may be material. However, management believes that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgements.
Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update forward-looking statements, except as required by applicable law.
Gen III Oil Corp.
Chief Executive Officer