Onteco Corporation, ONTC, Files Annual Report and Provides Additional Information on $17.2M Valuation on NexPhase IP
April 18 2011 - 9:10AM
Business Wire
Onteco Corporation (OTC: ONTC), (the “Company”, or “Onteco”),
announced today that it has filed its 10-K annual report for 2010
(the “Annual Report”), and that the filing disclosed additional
information on the appraisal services report (the “Appraisal
Services Report”) from Pellegrino & Associates,
(www.pellegrinoandassociates.com), which provided the valuation on
the new, patent pending intellectual property of its subsidiary,
NexPhase Lighting, Inc. (“NexPhase”). NexPhase is a designer,
developer and manufacturer of high efficiency, high quality LED
intelligent lighting fixtures.
The Annual Report restated that the Appraisal Services Report,
commissioned by Onteco prior to its acquisition of NexPhase,
established the value of the new NexPhase intellectual property at
about $17,200,000. The Annual Report adds the following key
points:
- The valuation model indicates the fair
market value of the NexPhase intellectual property at a 90%
confidence level is between $6,820,229 and $41,109,593, with a mean
value of $19,710,311 and a median value of $17,216,091; and
- Pellegrino & Associates used the
statistical median as its expected value, as it removes the impact
of improbable outliers. Consequently, based upon a reasonable
degree of probability as used within the valuation profession, the
fair market value of the NexPhase intellectual property calculates
at $17,216,091, using the income approach to value.
“As I have stated previously, this valuation applies to only a
few key market applications of the NexPhase patent, leaving aside a
breath of other market applications that we plan to pursue. In
other words by this limitation, we believe that the Appraisal
Services Report significantly understates the overall revenue
potential of the NexPhase patent to us,” said Onteco President and
CEO, Dror Svorai. “We hope that this additional disclosure helps to
clarify how the value of the NexPhase intellectual property was
calculated. It is important to note that this valuation is critical
to how we perceive and plan subsequent uses of capital by Onteco
going forward.” He added, “With 2010 behind us, and our future with
NexPhase before us, Onteco in many ways is without doubt a new
corporation.”
About Onteco Corporation
Onteco Corporation was founded to develop innovative,
practical and cost-effective solutions to some of the most
significant environmental challenges facing us today.
Additionally, these solutions must show promise of generating
significant, ongoing profits for the company. The company
determined that one industry that meets these criteria is the
Energy Saving Lighting Industry, and as a result acquired
NexPhase Lighting, Inc., in February 2011.
Additional information about Onteco Corporation is available at:
www.Onteco.com
About NexPhase Lighting, Inc.
NexPhase Lighting, Inc. is a designer and developer of
proprietary high quality LED (light-emitting diode) lighting
fixtures and control systems for commercial applications. It
believes its products will be the lowest cost, highest efficacy
fixtures available in the LED Lighting Industry. All NexPhase
lighting products incorporate its proprietary “NexSense
TechnologyTM”, which provides benefits well beyond the generally
acknowledged advantages of all other LED lighting fixtures.
NexSense control systems use a unique, “patent pending” wireless
protocol, which provides for an unsurpassed reduction in
architecture and infrastructure installation cost in commercial
applications, as well as significantly reduced maintenance and
ongoing operation costs.
For more information about NexPhase Lighting, Inc. visit:
http://www.nexphaselighting.com
Safe Harbor Statement:
This release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934. Certain
statements set forth in this press release constitute
"forward-looking statements.” Forward-looking statements include,
without limitation, any statement that may predict, forecast,
indicate, or imply future results, performance or achievements, and
may contain the words "estimate", "project", "intend", "forecast",
"anticipate", "plan", "planning", "expect", "believe", "will
likely", "should", "could", "would", "may" or words or expressions
of similar meaning. Such statements are not guarantees of future
performance and are subject to risks and uncertainties that could
cause the company's actual results and financial position to differ
materially from those included within the forward-looking
statements. Forward-looking statements involve risks and
uncertainties, including those relating to the Company's ability to
grow its business. Actual results may differ materially from the
results predicted and reported results should not be considered as
an indication of future performance. The potential risks and
uncertainties include, among others, the Company's limited
operating history, the limited financial resources, domestic or
global economic conditions -- activities of competitors and the
presence of new or additional competition and conditions of equity
markets.