SOURCE: General Environmental Management

March 06, 2006 17:25 ET

General Environmental Management, Inc. Completes $7 Million Financing Transaction

POMONA, CA -- (MARKET WIRE) -- March 6, 2006 -- General Environmental Management, Inc. ("GEM") (OTC BB: GEVM), a leading environmental and waste remediation company, today announced on March 3, 2006 it entered into financing agreements with Laurus Master Fund, Ltd. Under the terms, GEM issued a secured convertible term note ("Convertible Note") in the principal amount of $2.0 million, a secured non-convertible revolving note of up to $5.0 million and a 7 year warrant ("Warrant") to purchase up to 3,218,000 shares of the company's common stock at a price of $0.87 per share.

The principal amount of the Convertible Note carries an interest rate of prime plus three and one half percent, subject to adjustment, and such interest is payable monthly. Monthly payments will commence on June 1, 2006. The principal amount of the Convertible Note and accrued interest thereon is convertible into shares of GEM common stock at a price of $0.85 per share, subject to anti-dilution adjustments.

"The new revolving loan financing has enabled the company to pay off in full its prior revolving loan, with the new revolving loan providing additional borrowing capacity under more favorable terms," stated Tim Koziol, chairman and CEO of GEM. "With this funding completed, we are excited to move forward and take the next steps to execute on our strategic growth initiative. We intend to grow the company by adding niche business segments and acquiring complementary technologies, thereby strengthening our presence in the Western U.S. as well as broadening our reach into new markets."

Rodman & Renshaw LLC acted as exclusive placement agent to the company in this transaction.

GEM intends to file a registration statement with the SEC to register the shares underlying the Warrant and the Convertible Note for public resale.

About General Environmental Management, Inc.

General Environmental Management, Inc. (www.go-gem.com) is a full service hazardous waste management and environmental services firm providing integrated environmental solutions managed through its proprietary web-based enterprise software, GEMWare, including the following service offering: management and transportation of waste; design and management of on-site waste treatment systems; management of large remediation projects; response to environmental incidents and spills; and environmental, health and safety compliance. Headquartered in Pomona, California, GEM operates five field service locations and one Treatment, Storage, Disposal facility (TSDF), servicing all markets in the Western U.S.

Statements made in this press release that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations and beliefs of the management of GEM. No forward-looking statement can be guaranteed. GEM undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect GEM's business.

Contact Information

  • Company Contact:
    General Environmental Management (GEM)
    Tim Koziol
    909-444-9500
    Email Contact

    Investor Contact:
    Lippert / Heilshorn & Associates, Inc.
    Moriah Shilton / Kirsten Chapman
    415-433-3777
    Email Contact