Titan’s Agreement to Become Effective Upon Acquisition of Appalachian Oil Company Scheduled This Week
Sep 10, 2007 - Titan Global Holdings, Inc. (Titan) (OTCBB:TTGL), a high-growth diversified holding company, announced today that it and NewGen Technologies (NewGen) completed a definitive BioFuels Supply Agreement which will become effective upon Titan's acquisition of Appalachian Oil Company (Appco) which is scheduled for September 12, 2007.
Titan recently formed Titan Global Energy (Titan Energy), a division engaged in the acquisition and management of complementary energy sector assets. Titan Energy has and will capitalize on initiatives within the energy sector that can provide significant opportunities for revenue and earnings growth. Appco is the first acquisition of Titan Energy, which will seek future acquisitions to compliment Appco's existing retail and wholesale distribution footprint.
Last week Titan issued revenue guidance for fiscal 2008. Titan Global Energy is expected to contribute $433 million to Titan's stated overall revenue guidance of $747 Million for fiscal 2008.
Under the agreement with NewGen, ReFuel America, Inc., a wholly owned subsidiary of NewGen, will be a supplier of biofuels for APPCO. The term of agreement is 10 years with the right to supply biofuel products to Appco at the prevailing market price for such biofuel products at the time an order is placed.
Appco, formed in 1923 and based in Blountville, Tennessee, is a privately held petroleum company that owns and operates an extensive petroleum product distribution network that generated $403 million in revenues for fiscal 2006. Appco distributes petroleum products to more than 160 dealers in the southeastern United States and owns and operates 56 convenient store locations. Appco has more than 550 employees and maintains long standing partnerships with strategic terminal operators and major oil companies.
"The access to these additional sources of biofuels will help us lead Appco's markets in the distribution of such products," said David Marks, Chairman of Titan Global Holdings. "Titan's initiatives in the energy sector are consistent with Titan's unwavering commitment to the creation of shareholder value. This agreement leverages our financial and management strength with the biofuel know-how of NewGen."
Mr. Marks, Frank Crivello and their affiliated investors are minority shareholders in NewGen.
"Titan's senior management is committed to the utilization of Appco's extensive distribution channels into 55 retail and 165 dealer accounts to distribute environmentally friendly biofuels while earning higher profit margins," said Bryan Chance, Chief Executive Officer of Titan Global Holdings. "These additional supply sources will enable us to increase revenues and earnings in the energy sector. As well, we will continue to search for strategic opportunities in the dynamic energy sector."
Appco's strong revenue base and storied 84-year history provides Titan with an ideal platform company for further expansion of its energy efforts. Furthermore, Appco's management team has more than 125 years experience in the petroleum and convenience store industry. Titan will preserve and leverage Appco's industry-leading management team.
About Titan Global Holdings
Titan Global Holdings, Inc. is a high-growth diversified holding company with a dynamic portfolio of companies engaged in emerging telecommunications markets, advanced technologies and energy. In its last fiscal year Titan generated in excess of $109 million in revenues on a consolidated basis.
Titan's Oblio Telecom Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas, is a market leader in prepaid telecommunications products and the second largest publicly-owned international telecommunications company focused on the prepaid space. Oblio leverages strategic agreements with Tier 1 telecommunications leaders Sprint and Level3 to supply its brand-name prepaid calling cards. Annually Oblio sells an estimated 35 million of its brand-name prepaid calling cards through its established distribution channels estimated at more than 60,000 retail outlets.
Titan Wireless, Inc. ("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products and wireless services through Oblio's established distribution channels. Titan's Electronics and Homeland Security division specializes in advanced manufacturing processes to provide commercial production runs and quick-turn delivery of printed circuit board prototypes for high-margin markets including Homeland Security and high-tech clients.
For more information, please visit: www.titanglobalholdings.com. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.
Forward-Looking Statements
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