STWA Launches Special Purpose Vehicle -- QS Energy Pool -- to Pursue Acquisition Strategy
SANTA BARBARA, CA -- (Marketwired) -- 07/20/15 -- STWA (OTCQX: ZERO)
- Company initiates bifurcated growth strategy for 1) continued commercialization of current product portfolio, and 2) the pursuit of accretive acquisitions of complementary businesses to drive shareholder value
- Management in advanced discussions with multiple, leading energy focused investment banks for this venture
- Board of Directors appoints leading industry experts to QS Energy Pool Advisory Board
STWA (the "Company") (OTCQX: ZERO), a developer of integrated technology solutions for the energy industry, today announced the launch of QS Energy Pool ("QSEP"), a newly formed wholly owned subsidiary, which will serve as a special purpose vehicle with a sole purpose of pursuing acquisition opportunities in the oil and gas operations market.
The formation of QSEP represents the first step of the Company's mergers & acquisitions plan as it pursues its bifurcated growth strategy of commercializing its current technology solutions, further building out its product portfolio, and acquiring complementary entities or product lines that will drive future shareholder value. QSEP will target the acquisition of operating companies and/or oil & gas assets, primarily looking at those with proven, positive cash flow in an effort to provide operating income and bottom line revenue that are both accretive to, and synergistic with, STWA's current operations. Initial acquisition targets are expected to be valued between $10 and $25 million, with annual revenues ranging from $3-$8 million, though other acquisition targets could materialize and may be pursued.
Greggory Bigger, STWA Chief Executive Officer and Chairman, commented, "The launch of QS Energy Pool represents one of the most important and promising initiatives in STWA's history. Recent downward pressure on oil prices has drastically depressed values of producing assets and companies within the sector, and there is significant value to be had for those who are able to capitalize on current market conditions. We intend to initiate an M&A strategy for complementary energy entities, whereby success can result in immediate and positive changes to our P&L and balance sheet. Acquiring companies and assets with proven cash flow will put STWA in a strong position to enhance our product portfolio, partner with industry leaders and, most importantly, generate strong returns for our shareholders. I want to be clear; this acquisition plan is one of two prongs to our growth strategy and we fully intend to continue to pursue long-term growth through our current product portfolio, with an emphasis on the commercialization of our AOT and STWA Joule Heat solutions. Our goal is to secure contracts for our viscosity reduction technologies and aggressively press for global deployments, adding M&A initiatives through QSEP to acquire companies whose technologies or services we can leverage for the installation and maintenance of our technologies. We believe this bifurcated approach with position STWA more favorably as we all work to generate more immediate and long-term shareholder value."
STWA's current Officers and Board of Directors will manage QSEP as a wholly owned subsidiary. Additionally, the Company has established a QSEP Advisory Board, members of which will be integral in identifying acquisition opportunities. The initial two members of the Advisory Board are Bill Nicholson and Scott Wood, both of whom are energy industry veterans, bringing with them a wealth of knowledge and strategic relationships within the oil and gas sector. Mr. Nicholson has a long track record of success as a senior executive for both private and publicly traded companies, including during his tenure as Chief Operating Officer of Amway Corp. which he oversaw a period of extreme financial growth. Mr. Wood has three decades of well-to-refinery experience in the energy industry, providing oversight of oil and gas properties in many of the industry's most active shale formations. Both advisors will serve as invaluable assets for all acquisition initiatives. Mr. Nicholson's and Mr. Wood's full biographies can be found on the STWA website at http://ir.stwa.com/management-team.
Mr. Bigger continued, "Bill and Scott are energy industry heavyweights and highly successful businessmen who will utilize their acumen, and broad network of relationships to lead QSEP and enhance our acquisition strategy. We are proud to bring them on board and could not imagine two better advisors as we enter this important venture. They understand better than anyone that now is an ideal time to pursue M&A within the energy industry, which is experiencing historic levels of production that are projected to continue for decades. As such, Bill and Scott will lead QSEP in pursuing below market value, cash flow positive acquisition targets with liquidity and marketable assets. We also intend to announce additional advisors to the board over the coming quarters.
Mr. Bigger concluded, "We are currently engaged in advanced discussions with several, energy-focused investment banks to act as partners in funding this effort. There is much excitement around the business plan and the advisory board, and I expect to choose a financing partner in the near term. I look forward to providing investors with updates on QSEP, and the progress of our AOT and STWA Joule Heat technologies as material events occur."
For further information about STWA, Inc., visit www.stwa.com, read our SEC filings at https://ir.stockpr.com/stwa/all-sec-filings and subscribe to Email Alerts at https://ir.stockpr.com/stwa/email-alerts to receive company news and shareholder updates.
Safe Harbor Statement:
Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.stwa.com/site-info/disclaimer
About Save the World Air, Inc. d/b/a STWA
Save The World Air, Inc. (STWA) (OTCQX: ZERO) provides the global energy industry with patent-protected industrial equipment designed to deliver measurable performance improvements to crude oil pipelines. Developed in partnership with leading crude oil production and transportation entities, STWA's high-value solutions address the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. In support of our clients' commitment to the responsible sourcing of energy and environmental stewardship, STWA combines scientific research with inventive problem solving to provide energy efficiency 'clean tech' solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors. More information is available at: www.stwa.com.
Save the World Air, Inc. d/b/a STWA
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