-- Increased Cash Position to a Total of $6.6 Million
-- Expanded Marketing Agreement with C6 Energy to Promote GBRC Technology
-- New infrastructure Expansion for Expected Orders Going Forward
WEST BERLIN, N.J., May 12 /PRNewswire-FirstCall/ -- Global Resource
Corp. (OTC: GBRC), a developer of a patent-pending microwave technology and
machinery for extracting oil and gas, announced today it has filed its 2008
first quarter financial results and is providing a shareholder update. The
Company maintains its status as a research and development stage company.
Global Resource is continuing to work on the commercialization of their
award winning patent pending technology which utilizes variable microwave
frequencies for the recovery of oil and petroleum products from shale
deposits, tar sands, capped oil wells, bituminous coal and processed
materials such as tires and plastics as well as dredged soil from harbors
and river bottoms.
For the quarter ending March 31st, the Company reported a net loss of
$3.6 million, or $(0.12) per share. Operating expenses increased as Global
Resource hired several keys engineers and executives to support the
commercialization of its technology. The Company currently has the
infrastructure in place to commercialize up to 25 orders per quarter,
allowing for rapid expansion as the company receives orders. During the
quarter a significant amount of resources were utilized in the research and
development of the microwave technology. Global Resource continued the
development and testing of the 1 ton prototype machine. In addition, the
Company completed testing of several feedstock samples from potential
partners around the world.
On a cash flow basis, the Company's net loss was $(1.9) million, an
increase from previous loss of $(0.68) million in the year ago quarter. The
net increase in the company's cash position, factoring in cash flows from
operations, investment and financing was $5.88 million, increasing the cash
position from $1.0 million in the first quarter 2007 to $6.6 million in the
first quarter 2008.
"Increasing our cash position while expanding our infrastructure to
sufficiently support future orders has positioned us for the commercial
launch of our technology in 2008," stated CEO Frank Pringle, "We believe we
have more than the necessary capital and internal engineers to fulfill the
orders our marketing partners believe to have secured, concluding our
internal expansion with the opening of our Rockford, Illinois office.
During the quarter we received terrific feedback from our partners,
including C6 Energy, as well as newly interested potential licensing
parties regarding orders to be finalized upon our GRFR1 demonstration in
the Second Quarter of 2008."
Key Shareholder Updates and Achievements
Global Resource management expanded several agreements this quarter,
including Warwick Communications and C6 Energy. Both agreements allow for
an expanded sales force for Global Resource without the requisite increase
on the operating line that would be typically associated if the Company had
internalized a sales force.
Warwick Communications has signed up at least one customer who has
agreed to a minimum purchase amount of $5 million for the initial 12 months
of the contract and for the same minimum for the next 5 calendar years.
Warwick's agreement allows for the company to expand its reach into South
America, along with the original Canadian provinces.
C6 Energy has expanded their marketing agreement to include both the
Middle East and Asia along with Europe. Management estimates that there are
approximately 30 potential customers that C6 is currently engaged in
negotiations with. C6 Energy has guaranteed 15% in licensing royalties to
the company on a throughput basis and believes they will see orders for
between 12-15 machines in calendar 2008.
Global Resource is currently completing the construction and testing of
its 1-ton prototype machine and will demonstrate the machine's efficacy for
potential customers in the next 60 days. The machine is able to process 1
ton of material per hour. We will demonstrate the prototype with the
initial focus on tire as a feedstock.
As of March 31st, the Company had approximately $1.6 million in cash
and an additional $5 million in escrow, pending the issuance of common
stock. Global Resource has since issued the additional shares, satisfying
the escrow agreement, and currently has slightly more than $6.6 million in
the bank. This alleviates the "Going Concern" in previous filings, which
the auditors have removed. The Company believes it has cash on hand for 33
months of operations at the current burn rate and does not anticipate the
need to raise additional capital over the next 12 months.
"By expanding our marketing agreements to include future royalty
payments, Global Resource has begun to execute on its business model to
maintain a strong recurring revenue base," commented CEO Frank Pringle,
"This coming quarter's demonstration of our technology will provide further
conviction for our sales and marketing partners in executing and will help
the Company capitalize on several ongoing contract discussions."
About Global Resource Corporation
Global Resource Corp. (GBRC) is a developer of a patent-pending
microwave technology and machinery that extracts oil and petroleum products
from shale deposits, tar sands, capped oil wells, bituminous coal and
processed materials such as tires and plastics as well as dredged soil from
harbors and river bottoms. Its process produces significantly greater
yields and lower costs than are available using existing technologies.
Because the process takes place in an enclosed environment it is
emission-free and an efficient and cost-effective tool for cleaning
environmental wastes and toxic materials. For more information see:
http://www.globalresourcecorp.com
Forward-Looking Statements
This news release contains forward-looking statements regarding Global
Resource Corp.'s business strategies and future plans of operations.
Forward- looking statements involve known and unknown risks and
uncertainties. The forward-looking statements contained in this news
release speak only as of the date hereof and Global Resource disclaims any
obligation to provide public updates, revisions or amendments to any
forward-looking statements made herein to reflect changes in Global
Resource's expectations or future events.
Jeff Andrews, CFO
Global Resource Corporation
Bloomfield Business Park
408 Bloomfield Dr. Unit 3
West Berlin, NJ 08091
Main: 856-767-5661
JAndrews@GlobalResourceCorp.com
Investor Contact:
Thomas Walsh, Partner
Alliance Advisors, LLC
Tel: (212) 398-3486
twalsh@allianceadvisors.net
PR/Media Relations Contact:
Richard Stern
Stern & Co.
richstern@sternco.com
Tel: 212-888-0044
SOURCE Global Resource Corp.
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Related links:
http://www.globalresourcecorp.com
CONTACT:
Jeff Andrews, CFO, Global Resource
Corporation, +1-856-767-5661, JAndrews@GlobalResourceCorp.com;
Investor Contact, Thomas Walsh, Partner, Alliance Advisors, LLC,
+1-212-398-3486, twalsh@allianceadvisors.net; PR-Media Relations
Contact, Richard Stern, Stern & Co., +1-212-888-0044,
richstern@sternco.com
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