CMG HOLDINGS GROUP INVESTS IN NEW DISRUPTIVE GREEN TECHNOLOGY THAT HELPS ELIMINATE POLLUTANTS IN CRUDE OIL
November 30 2021 - 9:47AM
InvestorsHub NewsWire
Chicago, IL -- November 30, 2021 -- InvestorsHub
NewsWire -- CMG Holdings Group, Inc. (OTC:CMGO) today announced it has entered into
a joint venture with North Jersey Petroleum Partners LLC
(NJPP) a provider of groundbreaking eco-friendly "upgrading"
technology that increases the value and quality of low-grade
petroleum by removing impurities and reducing sulfur at profits of
approximately $ 6 to $10 per barrel. NJPP anticipates its new
Magnetic Vacuum Upgrading (MVU) technology will quickly be seen as
a disrupter in the oil treatment market; rivaling thermal and
catalytic cracking methods currently used for upgrading crude/fuel
in refineries today, which are highly pollutive and costly to
build. This patent pending, cost efficient "green technology" is
owned by New Vacuum Technologies, LLC (NVT) and is sub-licensed to
NJPP by New Vacuum Technologies USA LLC, a subsidiary of NVT. Terms
of the JV include a CMG investment in the form of a one
million-dollar loan for 10% of the joint venture
in NJPP's oil treatment facility, located in northern New
Jersey. NVT successfully installed and tested its MVU technology at
a prototype plant in Southern New Jersey during the fall of 2020.
Research is currently underway to determine if MVU technology
qualifies for carbon credits, which would add significantly to
profitability, as NVT works toward its goal of rolling out its
environmentally friendly, cutting-edge technology to upgrade crude
oil on a commercial scale in Q1 2022.
"With new regulations limiting pollutants - especially
sulfur - we anticipate the emerging proprietary treatment
technology market for petroleum products to be very profitable,"
said CMG CEO Glenn Laken "enhancing the value of lower priced, low
grade petroleum feedstocks with MVU technology to produce a higher
quality product that can be sold at a premium using environmentally
sensitive, more cost- effective technology is a win-win for
everyone." He explains, "When upgrading heavy and sour fuel oil to
a medium to low sulfur fuel, the spread between the price of the
crude before and after treatment determines profit. Assuming
potential profits per barrel in the range of $ 6 to $10 per barrel
the JV should realize a net profit margin between $900,000 and
$1.5 million dollars per month. As a 10% member of the LLC, CMG's
share should equate to between $1,080,000 and $1,800,000
annually." He adds, "In the short term during the next 12
months the JV plans to install 1 to 3 more processing units,
enabling 10,000 to 20,000 bpd in production. If we reach the goal
of 4 units CMG can earn approximately $3.6 million to $7.2 million
annually. Assuming the JV can achieve its goal of installing 8
units - the maximum number that can be installed at the processing
facility currently being used by NVT - processing capacity can
reach 40,000 bpd and achieve profit levels of approximately
$7,200,000 to $18,000,000 per month ($86,400,000 to $216,000,000
annually). CMG's share as a 10% member would be from $8,600,000 to
$21,600,000 annually."
NVT's partners combine over 75 years of technology,
business development and management skills with over 50 years
of oil industry upgrading experience in North America, South
America and Europe. The Company's principals led a state sponsored
research institute specializing in petrochemical technologies for
over a decade and a half before creating NVT. Their research
into physical vacuum and quantum tunneling on viscosity and other
physical properties of fluids, resulted NVT's technology to
upgrade crude oil quality.
CMG Holdings has signed a $500,000 financing agreement
with an institutional investor, with use of proceeds targeted to
fund the NJPP venture, in addition to our previous loan. Terms
include a junior note with 10% interest rate, a one-year maturity,
and a modest redemption premium. It is currently contemplated for
the loan to be repaid by end of Q1 2023. "We are very excited
about this venture and the creation of the JV. I'd like to thank
all of our CMGO shareholders for their interest and loyalty and
view this as a watershed event for our organization," Glenn Laken
said. For further information, contact CMG for A non-disclosure
agreement with NJPP and NVT, which must be signed before additional
technical information can be shared. To access the NDA, go
to https://www.cmgholdingsinc.com/.
Disclosure Statement
Statements in this press release about our future expectations,
including without limitation, the likelihood that CMG Holdings
Group, Inc. will meet minimum sales expectations, be successful and
profitable, bring significant value to its stockholders, and
leverage capital markets to execute its growth strategy, constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934, and as that term is defined in the Private Litigation
Reform Act of 1995. Such forward-looking statements involve risks
and uncertainties and are subject to change at any time, and our
actual results could differ materially from expected results. The
Company undertakes no obligation to update or release any revisions
to these forward-looking statements to reflect events or
circumstances after the date of this statement or to reflect the
occurrence of unanticipated events, except as required by law.
CMG's business strategy described in this press release is subject
to innumerable risks, most significantly, whether the Company is
successful in securing adequate financing and materially decreases
its convertible debt. No information in this press release should
be construed in any form shape or manner as an indication of the
Company's future revenues, financial condition or stock
price.
Contact:
www.cmgholdingsinc.com
(773)698-6047
glennbrlaken@gmail.com
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