SEER ENTERS INTO AN AGREEMENT WITH ITS TEXAS OPERATING PARTNER TO CONSOLIDATE THE NORTH AMERICAN MEDICAL WASTE MARKET AND PLANS TO COMMENCE ROLL OUT OF WEST COAST FACILITIES
Strategic Environmental & Energy Resources, Inc. (SENR) and Paragon Southwest Medical Waste, LLC have agreed to consolidate their operations in the North American medical waste market. This strategic move aims to expand the business beyond Texas and establish multiple treatment facilities nationwide. SEER will increase its equity stake in the joint venture to approximately 30% while retaining its original equity in its majority-owned entity, Paragon. The consolidation is expected to enhance funding opportunities and improve operational efficiency, especially in light of challenges in the medical waste sector.
- SEER will triple its equity in the consolidated entity to approximately 30%.
- The consolidation is expected to enhance funding opportunities for business expansion.
- The partnership aims to establish multiple medical waste treatment facilities across the U.S.
- PSMW operates at near capacity, treating over 700,000 pounds of waste monthly due to challenges from COVID-related shutdowns.
- Increased competition and potential new entrants in the medical waste market may pose risks.
SEER and its Texas JV partner, Paragon Southwest Medical Waste, LLC (“PSMW”), have entered into an agreement to consolidate the North American medical waste market under PSMW and commence efforts to grow the business beyond the current Texas territory and roll out their plans to build multiple medical waste treatment facilities across the United States beginning in late 2022.
BROOMFIELD, CO, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Strategic Environmental & Energy Resources, Inc. (SEER) (OTCQB: SENR), a provider of environmental, renewable fuels and industrial waste stream IP, services and management, has entered into an agreement to consolidate the North American medical waste market under PSMW. PSMW has been one of SEER’s JV medical waste treatment partners operating in Texas since 2019. After exploring funding options to roll out medical waste treatment facilities on the west coast, it became apparent to all parties that consolidating operations was the best way to proceed in order to most efficiently commence growth strategies and national operations. SEER will nearly triple its equity in the consolidated entity to approximately
“But for challenges created by the Covid shutdowns and related events, PSMW has been operating at near capacity for most of 2022, now treating more than 700,000 pounds of medical waste each month,” said Fortunato Villamagna, President of Paragon. “The medical waste market continues to grow, as does Paragon’s participation and influence. Issues being faced by some of the industry’s largest participants, the overall lack of thermal destruction capacity in the hazardous waste market - especially on the west coast - combined with the superior service and value provided by Paragon, have created a unique expansion opportunity for the company. The increased awareness related to ESG performance and rating, overall emission reduction regulations and lowering of carbon footprint goals place Paragon in an ideal position to be able to deliver positive contributions in all these areas. The confluence of all these dynamics and solution offerings of the Paragon system have created a unique point in time to expand as a consolidated business venture,” said Villamagna.
“SEER has been a partner in the California facility since approximately 2015, and the managing partner in the Texas operation since February 2018. Since SEER has recently reacquired the sole rights to treat medical waste in California, one of the nation’s largest markets, it made good business sense to eliminate any possibility of ‘competing’ for medical waste streams and join forces with our Texas partners as we proceed to establish and operate multiple facilities on the west coast where there are no medical waste incinerators. In the wake of the ‘restart’ after the COVID shutdown, there have been noticeable changes in the medical waste industry landscape and new players may be coming into the market at all levels. Consolidating the Paragon operating entities and territories was the right thing to do,” said Villamagna. “Indeed, the consolidation makes funding more attractive and sets the stage for us to collectively take advantage of being able to locate the Paragon Systems closer to the source of the waste thereby significantly offsetting freight expenses. This has always been a tremendous advantage of the patented technology,” concluded Villamagna.
“SEER has been seeking a strategic partner and well-structured funding for its west coast rollout for quite a while and it became apparent joining with SEER’s Texas joint venture made good business sense to facilitate this objective,” said John Combs, SEER’s CEO. “By consolidating, the new entity will be stronger than either of the separate Paragon entities. Also important, SEER will retain the ability to market and exploit the Paragon technology on its own throughout the world except for North America where the consolidated entity will be focused,” said Combs. “It became very clear that Paragon Southwest wanted to expand into the national market, had the impressive operating history to do it, and wanted to combine with Paragon to streamline the campaign. After protracted negotiations, we are all very pleased to move forward together. This constitutes long-awaited progress in achieving our domestic rollout objectives and now enables us to better focus on our international markets,” said Combs.
About Strategic Environmental & Energy Resources, Inc.
Strategic Environmental & Energy Resources, Inc. (SEER) (OTCQB: SENR), identifies, secures, and commercializes patented and proprietary environmental clean technologies in several multibillion-dollar sectors (including oil & gas, renewable fuels, and all types of waste management, both solid and gaseous) for the purpose of either destroying/minimizing hazardous waste streams more safely and at lower cost than any competitive alternative, and/or processing the waste for use as a renewable fuel for the benefit of the customers and the environment. SEER has two wholly-owned operating subsidiaries: MV Technologies, LLC and SEER Environmental Materials, LLC; and two majority-owned subsidiaries: Paragon Waste Solutions, LLC; and PelleChar, LLC. For more information about the Company visit: www.seer-corp.com.
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FAQ
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