KEASBEY, N.J. -- Homeland Security Network (Pink Sheets: HSYN), doing business as Global Ecology Corporation (GEC), announced today that it has successfully completed the sale of its GPS Technology to Global Safety Holdings (GSH).
Under the financial terms of the sale, GEC will receive a minimum of $4 million over GSH’s initial three or more years of operation. GEC also will receive 3,111,111 shares (10% of current issued and outstanding) of GSH, which can be diluted only by the infusion of a third party cash infusion. Based on current projections as provided by GSH (www.completeventure.com/ONEPAGER.pdf) this sale is expected to be worth approximately $15 million in net income to GEC over the next three years.
Although the GPS business is no longer considered to be a part of its core business, GEC will continue to develop its U.S. and Mexico markets for the foreseeable future under license to GSH.
GSH has a contract with the Open Joint Stock Company (OJSC / Finance Leasing Co.) of Moscow to provide GPS products and tracking services. The contract runs through December 2020 and is valued at more than $1.8 billion. The initial order is for 100,000 units to be delivered through July 2009 with subsequent annual orders to be increased by 15,000 units through the 2020 end of the contract. GSH anticipates additional contracts of smaller size will be generated from their relationships within the 15 additional countries in the Russian Federation.
Global Ecology CEO Peter Ubaldi said, “GEC is very excited about this transaction and new relationship for several reasons. Not only will we share in a huge GPS market that we could never have entered, but the unit volume generated by GHS will reduce our product cost to as low as or lower than our U.S. and Mexico competitors. Additionally, GSH has agreed to help introduce our environmental technologies to their Russian Federation relationships, which will further expand our market opportunities in that part of the world.”
About Global Ecology Corporation
Through their extensive network, Global Ecology Corporation (GEC) has obtained exclusive rights to several EPA-approved technologies in the water treatment and soil remediation fields. This proprietary technology helps reduce algae, bottom sludge and harmful bacteria and is able to provide "green" and if needed, transportable methods to recover the usability of water, soil and land. Global Ecology also has initiatives in the GPS and fleet tracking industries. For more information, please visit www.geco.us
An investment profile on Global Ecology may be found at www.hawkassociates.com/profile/hsyn.cfm.
Investors may contact President & CEO Peter Ubaldi at 732-738-8031 or Frank Hawkins, Hawk Associates, at 305-451-1888, e-mail: email@example.com. To receive future releases in e-mail alerts, sign up at www.hawkssociates.com/about/alert.
This news release includes forward-looking statements regarding, among other things, the company's business and financial plans, strategies and prospects. Although the company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, it cannot provide assurance that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as: believe, expect, anticipate, should, planned, will, may, intend, estimated, and potential, among others. Important factors that could cause actual results to differ materially from the forward-looking statements made in this news release include market conditions and those set forth in any reports or documents that the company may publicly file from time to time. All forward-looking statements attributable to the company or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.