SOURCE: General Environmental Management, Inc.

December 04, 2006 09:00 ET

General Environmental Management's Exclusive Period to Acquire Pollution Control Industries Expires

Continues Pursuit of Financing With Institutional Investors

Raises $7.5 Million of Equity for Working Capital

Repays Note to Laurus Master Fund, Ltd.

POMONA, CA -- (MARKET WIRE) -- December 4, 2006 -- General Environmental Management, Inc. (GEM) (OTCBB: GEVM), a leading environmental and waste remediation company, today announced its agreement to acquire Pollution Control Industries, Inc. (PCI) has expired.

Tim Koziol, CEO of GEM, stated, "We are continuing to pursue the financing necessary to acquire PCI and renew our offer. In this regard, we are in advanced negotiations with several large institutional investors to provide the financing necessary to renew our offer to PCI and complete the PCI transaction, although no assurance can be given that PCI will accept a future offer. Additionally, we have successfully raised approximately $7.5 million for working capital purposes through the sale of common and preferred stock."

GEM also prepaid a secured three-year term note ("Note") in the face amount of $25 million to Laurus Master Fund, Ltd. (Laurus) and cancelled seven-year warrants to purchase 13,636,362 shares of GEM common stock at an exercise price of $0.24 per share that were issued to Laurus as partial consideration for the proceeds of the Note. A portion of the Note proceeds were held in a restricted account and have been paid to Laurus. GEM incurred interest, fees, and expenses of $1.8 million for the availability of the Note proceeds.

During the exclusive period to purchase PCI, GEM's investment bankers did not raise the required $16 million through the sale of GEM's equity securities to meet the conditions of the Laurus Agreements and complete the acquisition of PCI by November 29, 2006. GEM attributed its inability to raise the funds through a PIPE offering to a reinterpretation of Rule 415 by the Staff of the Securities & Exchange Commission (SEC), which makes it difficult to determine when securities sold in a PIPE transaction can be registered under the 1933 Act. GEM believes investors who were the primary targets to invest in GEM's PIPE offering were reluctant to invest in the securities of GEM because of the uncertainty caused by the SEC's reinterpretation of Rule 415.

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