CTGX MINING, INC. ANNOUNCES
SIGNING OF APHTECH FLUIDS, INC. ACQUISITION AGREEMENT
San Francisco, CA - November 12, 2014 - InvestorsHub NewsWire -
CTGX Mining, Inc. (OTC:CHCX)
is pleased to announce that its Board of Directors recently
met and approved the signing of the Acquisition Agreement for
CTGX’s acquisition of Aphtech Fluids, Inc. in order to continue
moving forward with the acquisition of the company.
Aphtech Fluids Inc. is a specialty fluids
company providing high-quality, leading-edge drilling fluids to the
oil & gas industry.
The Company has developed a fully integrated line of chemicals,
muds and other fluid products centered around its proprietary
Aphron technology, and provides fully customized fluid
solutions.
Its Aphron technology has a successful 21 year history, having
been deployed in over 1000 wells across six continents, and has a
very strong patent position with 100+ worldwide patents.
Its two subsidiaries, HiTech Fluid Systems and
MASI Technologies, have an extensive list of
worldwide customers including Shell, Total, Encana, Devon,
TAQA and numerous National Oil Companies; across fields in the
Americas, North Africa, the North Sea, Europe, the Middle East and
Australia.
CTGX’s next steps regarding the acquisition of Aphtech, in order
to complete this acquisition, are to have the appropriate exchange
of Aphtech and CTGX shares placed into escrow to be held for
exchange upon completion of CTGX’s obligation to raise $1 Million
for providing to Aphtech to assist it in being able to move forward
with the streamlining of its business plan in order to improve its
current profit/loss scenario and future revenue projections.
To further assist Aphtech in this regard, CTGX is moving forward
concurrently with a Performance Audit of Aphtech’s operations for
potential streamlining and revenue enhancement opportunities.
Additionally, with CTGX’s help, Aphtech is intending to utilize
some of the funds raised by CTGX to boost its product line and
facilitate the further expansion of its products into new countries
like Russia, China, and India.
Over the next three years, CTGX anticipates providing Aphtech
with $10 million in capital to expand its business and retire its
debt. Use of those funds by Aphtech are intended to be as
follows:
• Proceeds of $10 million will be
allocated: $7 million to growth capital, and $3 million to retiring
existing debt
• Growth Capital will be used to
accelerate sales through national and international market
expansion.
• Expansion will include more
inventory locations globally; new manufacturing relationships;
further technology
development and increased sales
and marketing
• Through joint ventures and possible
acquisitions, the goal is to build a $85-100 million revenue
company within 5
years
Aphtech currently estimates 2015 revenues of $7
million, and increasing in 2016 based on current projects and
growth in international revenue. 2015 EBITA is projected to be
$1.8-2.0 million, and grow steadily in 2016 and beyond.
Revenue projections over the next five years are currently
projected at $126 MM with profits of $44 MM.
Other noteworthy actions by the CTGX Board of Directors at its
meeting were the acceptance of the resignation from CFO James
Pinto; the appointment of 5 new directors to be added to the Board
of Directors (Daniel Worthington as the new Chairman of Board, Jim
Pollak as the new Treasurer, Wayne Crosbie and Tom Brookey of
Aphtech as Directors, and VP of Operations Michael Peregrine as a
Director), and the appointment of Anna Deeter as Secretary &
Assistant Treasurer.
Following is some brief bio information about the five new
directors who were added to the CTGX Board of
Directors:
Daniel Worthington – Dr. Daniel Worthington is
presently CEO and Chief Development Officer for Worthington
Everidge Group, LLC (WEG), a privately held group of fundraising
and best practices consulting companies, and Managing Attorney,
Worthington Wealth & Legacy Law, LLC. He is a licensed
professional fundraiser, educator, lawyer, and nationally
recognized author in charitable trust and estate planning. He has
published numerous articles and two books. Daniel is also a
licensed professional fundraising consultant who has raised
over $ 1.8 Billion during his career.
James Pollak - After competing in the 1992
Summer Olympic Games in Cycling where he finished in 9th place, Jim
went into the financial industry. Jim has over 20 years of
experience in the investment industry. He started as a financial
advisor with major firms such as Prudential Securities and Paine
Webber. He has traded automated trading systems which he personally
developed. He has vast experience in marketing and is continuing to
explore Natural Resources in the U.S. Jim has a BS in Law and
Public Policy (with a minor in Policy Administration) from Indiana
University @ Bloomington, Indiana.
Wayne Crosbie – Wayne Crosbie is the co-founder
and current Vice President of HiTech Fluid Systems. He is an
experienced operations manager specializing in drilling fluid
applications, who has worked in the oil and gas industry since
1975. He has supervised geothermal wells in Japan and British
Columbia; supervised and sat on well blowouts for Mobil and Shell
East Coast Canada; sat on and supervised deep Rocky Mountain
Foothills wells in Alberta and British Columbia; and, has drilled
90+ horizontal wells in Saskatchewan, Canada. Wayne also has
significant offshore experience in working in Greece on hot
saturated H2S wells; and, also in working in high pressure, high
temperature, offshore East Coast of Canada wells.
Tom Brookey – Tom Brookey has extensive
experience in drilling fluids engineering, development and
management. Tom is currently President of MASI Technologies
and has been a member of numerous other boards including for
example Past Chairman of IADC Drilling Fluids Subcommittee, and
Past President of the Association of Independent Mud
Companies. Excluding 1963-1965 when Tom served in the US
Army, he has been working in the oil and gas industry since 1957
starting as a Roughneck while in college. Tom has worked much
of the deep basin throughout the US and Canada as well as offshore
in the Gulf of Mexico, Yemen, Venezuela, and other locations
globally. He is also the author of numerous technical papers
and articles; and, holds US and International patents.
Michael Peregrine - Michael is a
sales management professional with over 36 years of experience in
business, finance, and various management & sales management
roles. He was formerly President of Coin Seed & Chemical,
Inc. where he was able to leverage lead generation tools to
increase the company’s profitability and product presence in the
market place. Michael is currently VP of Operations with CTGX
Mining.
For More Information about CTGX Mining, Inc., Aphtech
Fluids, Inc. and/or its subsidiaries HiTech Fluid Systems and MASI
Technologies, please visit:
CTGX Mining, Inc.
www.ctgxmining.com/
HiTech
Fluids
http://hitechfluid.com/
MASI
Technologies http://www.masitech.com/
Forward-Looking Statements: Except for statements of historical
fact, this news release contains certain "forward-looking
statements" as defined by the Private Securities Litigation Reform
Act of 1995, including, without limitation expectations, beliefs,
plans and objectives regarding the development, use and
marketability of products. Such forward-looking statements are
based on present circumstances and on CHCX's predictions with
respect to events that have not occurred, that may not occur, or
that may occur with different consequences and timing than those
now assumed or anticipated. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors, and are
not guarantees of future performance or results and involve risks
and uncertainties that could cause actual events or results to
differ materially from the events or results expressed or implied
by such forward-looking statements. Such factors include general
economic and business conditions, the ability to successfully
develop and market products, consumer and business consumption
habits, the ability to fund operations and other factors over which
CHCX has little or no control. Such forward-looking statements are
made only as of the date of this release, and CHCX assumes no
obligation to update forward-looking statements to reflect
subsequent events or circumstances. Readers should not place undue
reliance on these forward-looking statements. Risks, uncertainties
and other factors are discussed in documents filed from time to
time by CHCX with the Securities and Exchange Commission. This
press release does not and shall not constitute an offer to sell or
the solicitation of any offer to buy any of the securities, nor
shall there be any sale of the securities, in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state. The securities have not been
registered under the Securities Act of 1933, as amended (the
"Securities Act") or any state securities laws, and may not be
offered or sold in the United States absent registration, or an
applicable exemption from registration, under the Securities Act
and applicable state securities laws.