STT Enviro Corp.
TSX VENTURE : STT

STT Enviro Corp.

June 16, 2015 09:00 ET

Support Builds for STT Enviro Corp.'s Current Board as Shareholders Are Reminded to Vote

Institutional Shareholder Services Inc. (ISS) recommends shareholders vote FOR all current directors as shareholder support shows recognition of the current board's strong leadership, experience and successful execution of turnaround plan

TORONTO, ONTARIO--(Marketwired - June 16, 2015) - STT Enviro Corp. ("STT") (TSX VENTURE:STT) today highlighted growing support from shareholders and ISS' positive FOR recommendation for all management nominated directors as it reminds all shareholders to vote their management WHITE proxy by June 23th, 2015 at 3:30 pm. (EDT).

"Our current board has made great strides in turning STT around and creating value for all shareholders," said David Deacon, CEO. "We have come a long way improving our working capital position, growing revenues, and paying down debt. The board and management are of a singular focus, which is to do what is best for the company and its shareholders. BG Capital Group Ltd. and its controlling shareholder, Robert Genovese (holders of 17.65% of STT's common shares), are proposing to nominate three persons to STT's six person board at the shareholders' meeting. We do not think that this potentially disproportionate representation is in the interests of all STT shareholders."

Mr. Deacon noted the current board's track record of success and value creation:

  • Projected 2015 revenue up over 250% since 2010
  • Increased gross margins to 31%, up 63% in 5 years
  • Repayment of all outstanding debt
  • Strong working capital and cash reserves enabling STT to finance future accretive acquisitions
  • Backlog has been rebuilt on growth in new sectors and business is set to continue growth
  • STT has outperformed the S&P/TSX Venture Composite and venture companies in the Industrial Sector over the short-term (1-year), mid-term (3-year) and long-term (5-year).

FIVE POINT ACTION PLAN FOR VALUE CREATION

STT has a well thought out strategic plan its current board is executing on to create value for all shareholders:

  1. Growth by Acquisition - A strong cash position and unleveraged capital allowing STT to attempt highly accretive acquisitions.
  2. Financial Backers - A US investor following which has participated in the Company's recent $2.5 million raise.
  3. Canadian Institutions - Building a Canadian institutional investor base to continue to increase liquidity without risking "financing price pressure".
  4. Organic Growth - Low oil prices are making STT's bolted tanks a "must consider" technology in the oil business since they are 25% cheaper than field welded tanks. Major sales growth was achieved in 2014.
  5. Margin Growth - STT's highest margin business (Solutions), has grown by over 125% in four years and we continue to focus on expanding opportunities in this area.

STT is building on the bench strength of the current board and implementing the five point action plan by adding two new highly qualified directors. A vote FOR the STT board is a vote to continue with the experienced accountable leadership that has delivered STT's turnaround while adding two new additional independent directors with strong backgrounds in business strategy, M&A, executive management and engineering.

STT Enviro Corp. has retained Kingsdale Shareholder Services as proxy solicitation agent for its upcoming shareholders meeting for fees of approximately $30,000 for the proxy solicitation service in addition to certain out-of-pocket expenses.

Shareholders are urged to vote their WHITE proxy in favour of STT's current board of directors prior to the proxy cut-off on Tuesday, June 23rd, 2015 at 3:30 pm. (EDT). If you have any questions or need assistance in voting your management's form of proxy, please contact Kingsdale Shareholder Services, at 1-866-581-1479 (toll-free in North America), or 416-867-2272 (collect calls accepted) outside North America or by email at contactus@kingsdaleshareholder.com.

About STT Enviro Corp.

STT Enviro Corp. (TSX VENTURE:STT) supplies cost-effective, incremental, environmental improvements to traditional industrial products. The Company's two operating groups, STT Enviro Corp Systems & Solutions and STT Enviro Corp Tanks & Industrial, work to reduce their customers' environmental footprint, cost efficiently.

STT Enviro Corp Systems & Solutions engineers and supplies chemical make-down systems to neutralize pollutants (usually acid water) created in the ore or oil recovery process; and aftermarket services including optimization of chemical use for our customers to lower costs and reduce their carbon footprint.

STT Enviro Corp Tanks & Industrial engineers and supplies bolted tanks with a smaller environmental footprint for both dry and liquid storage applications.

Environmental considerations are prerequisites in modern industrial expansion and STT Enviro Corp. is focused on being a leader and innovator on incremental environmental improvements. The Company's strategy is to grow organically and, longer term, to acquire companies at prices which are strategically and financially accretive.

For more information, please visit our website at www.sttenvirocorp.com.

Caution Regarding Forward-Looking Information and Non-IFRS Measures

Forward-Looking Information

This news release contains certain forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions regarding the growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and expectations and are based on information currently available to management of the Company. In particular, statements regarding the future operating results and economic performance are forward-looking statements. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including risks outlined under "Risk Factors" in our Annual Information Form, which is posted at www.sedar.com. In evaluating these statements, investors should specifically consider various factors, including such risks as Investment Risk; Business Valuations; Condition of Capital Markets; Dependence on Key Personnel; General Economic Factors; Interest Rate Risk; Competition; and Reliance on Key Suppliers. One or more of these "Risk Factors" could cause actual events or results to differ materially from any forward-looking statement. These factors should not be considered exhaustive. Although the forward-looking statements contained in this press release are based on what management of the Company considers to be reasonable assumptions based on information currently available to them, there can be no assurance that actual events or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and none of STT nor its directors assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.

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