GEM Completes Acquisition

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General Environmental Management Inc. said Monday that it completed its acquisition of Santa Clara Waste Water, a wastewater treatment business in Ventura County.

The acquisition is part of the Pomona company’s shift from providing hazardous waste field services to water treatment and waste-to-energy markets. Santa Clara Waste Water’s facilities include a 12.7 mile pipeline from its Santa Paula facility to the city of Oxnard’s water reclamation center.

GEM, which did not provide a total value for the deal, said it financed the acquisition by issuing six promissory notes to raise $9 million. It also issued warrants for the principals of Santa Clara Waste Water to purchase 425,000 shares of GEM’s common stock. Two of the notes, totaling $3.8 million, are convertible into a total of 15 percent of GEM’s common stock.

Chief Executive Tim Koziol said the company’s board decided to concentrate on higher-margin, faster-growing business segments, especially the water treatment and waste-to-energy markets. The company in August sold its GEM Mobile Treatment Services Inc. for $5.6 million.

“We plan to work with SCWW CEO Doug Edwards and his team to achieve the goal of becoming the premier independent non-hazardous wastewater management company;” Koziol said in a statement.

GEM shares were up 5 cents, or 14 percent, to 40 cents on the Over-the-Counter Bulletin Board.

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