RenuEn Corp Withdraws From St. Cloud Landfill Project
October 24 2013 - 4:32PM
Marketwired
RenuEn Corp Withdraws From St. Cloud Landfill Project
Company Files Lawsuit Against Engineering Firm
ST. CLOUD, FL--(Marketwired - Oct 24, 2013) - RenuEn Corporation
(OTC Pink: RENU) a Renewable Energy Development Company, announced
today that their wholly owned subsidiary Team Energy, Inc. has
notified the City of St. Cloud that they are withdrawing from the
development and construction of the St. Cloud Landfill project. In
addition, the company announced that it has filed a lawsuit in the
Circuit Court of the Ninth District in Orange County Florida
against HSA Golden Engineering for breach of contract, negligence,
professional malfeasance, excessive billing, quantum merit and
unjust enrichment.
Don Wood, CEO of RenuEn stated, "I am very disappointed that
after 3 years of hard work trying to get this project completed, we
had to finally walk away. Although we were fully prepared to
proceed with the project, the gross negligence of our past
engineers, as well as the added burden of an automatic termination
clause if 'substantial work' was not completed by November 14th has
overwhelmed any financial upside we could have achieved. The time
element that the City placed on us, the lack of definition as to
what 'substantial work' entailed, coupled with the fact that some
of the Council Members did not fully support this project meant we
had no buffer to avoid severe financial penalties. The most severe
impediment to this project was that HSA Golden failed to address
substantial life safety issues in the initial drawings. This
hindered our ability to obtain the final construction permit. When
HSA refused to provide us with the work product that we paid for,
it forced us to begin the engineering process from the beginning.
Combined, these factors became too large of an issue with our
investment and equity partners, ultimately leaving us with no other
choice but to terminate this project."
Woods further states, "We have filed a lawsuit against HSA
Golden seeking damages in excess of one million dollars. We feel
that their gross incompetence caused delays that essentially
crippled us in our ability to start this project."
Jeff Nemes, COO of RenuEn states, "Although this cancellation is
very frustrating, we have already identified, and are in late stage
negotiations and testing of a larger, more profitable landfill in
Florida. All of our finance and equity partners are committed to
supporting this landfill. This landfill will actually be less
costly to construct since it is an open landfill versus a 'closed'
landfill like St. Cloud. The potential profitability to the company
and our shareholders is much greater. An open landfill with a
constant and continuous feedstock has a much more predictable
performance and is subject to less degradation over time and can
last many more years than the ten year prediction of St.
Cloud."
Nemes Further stated, "The St. Cloud landfill is only one small
piece of the growth model for RenuEn, and the withdrawing from the
project will not have a negative impact on the financial growth of
the company. In fact, we are having substantial success with our
Energy Solutions division and we are in negotiations to build a
fueling station to support clients who wish to convert their fleets
to CNG. We will be updating the shareholders on the status of
sales, revenues and growth projections on our next conference call
which will be announced at the filing of our 3rd Quarter report in
the next few weeks."
About RenuEn Corporation RenuEn Corporation is a Renewable
Energy Development company. The company focuses on Landfill
Compressed Natural Gas capture, International Renewable Power
projects and the development of solar, geothermal and other
renewable energy strategies.
Safe Harbor Statement Forward Looking Statements: Statements in
this document contain certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements are based on many assumptions and estimates and are not
guarantees of future performance. These statements may involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of RenuEn
Corporation to be materially different from future results,
performance or achievements expressed or implied by such
forward-looking statements. RenuEn Corporation assumes no
obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future. Our actual results may differ materially
from the results anticipated in these forward-looking statements
due to a variety of factors. There may be other factors not
mentioned above that may cause actual results to differ materially
from those projected in any forward-looking statement. We assume no
obligation to update any forward-looking statements as a result of
new information, future events or developments, except as required
by applicable securities laws.
Contact and Inquiries for Investor Relations: Michael Irving
Paramount Advisors, LLC 407-878-5462 mike@parvise.com
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