FORT LAUDERDALE, Fla. , Dec. 16, 2020 /PRNewswire/ -- Empire Diversified Energy, Inc. (OTCQB:MPIR) offered additional details today regarding the recent closing of its $26 million funding, and the asset acquisition and expansion that has already begun as a result. As noted in its release of 12/2/2020, Empire's funding resulted from the issuance by the West Virginia Economic Development Authority of tax-exempt Dock and Wharf Revenue Bonds. The bond issuance, underwritten by Citigroup, was purchased primarily by Principal Street Partners and Nuveen Investments. This funding will enable Empire Trimodal Terminal, LLC, a new wholly owned subsidiary of MPIR, to acquire, expand and diversify the existing Facilities and operations at the Site.
The Facilities have historically been owned by Mr. Scott Ewusiak and operated under the name of Trimodal Terminal. Mr. Ewusiak will continue with his immediate focus being the expansion of the facilities which are located in Follansbee, West Virginia and sit on the east bank of the Ohio River, 40 miles west of the Port of Pittsburgh (the "Site").
The Site is a permitted barge facility authorized by the U.S. Army Corps of Engineers. The expanded operation will increase the number and type of materials to be provided to a larger number of industrial customers. Additional dock and wharf capacity will now allow the company to expand its loading and unloading of materials as well as provide a staging area for up to 45 barges along the 5,000 feet of Ohio river frontage at the Site.
The Site is readily accessed by rail and served by Norfolk Southern Railway. At present, the facilities also offer rail spurs available for transloading as well as extensive locations for materials storage, separation and blending. The modernization and expansion of oil storage facilities onsite has begun. Additionally onsite is a water manifold capable of pumping over one million gallons of non-potable water per day to high volume users such as natural gas well drillers, pipeline drillers and other industrial users. The funding will further enable Empire Diversified, the parent company, to increase the size and scope of an operation that has functioned successfully for years.
In commenting on the acquisition and the financing, Dr. Lawrence Chimerine , Chairman and Mr. Frank Rosso , CEO, stated that "it is the culmination of several years of hard work to identify both an acquisition candidate and source of financing." They stated further that "this acquisition represents the first step in our long term business plan to develop liquid natural gas and petrochemical storage hubs, together with scrap iron and mineral sales in the upper Ohio River Valley." They went on to emphasize the importance of MPIR's partnering with Mr. Ewusiak—"a seasoned operator with deep roots and extended experience in the area who will provide hands on management to our team."
Mr. Ewusiak, in adding his reaction to Messrs. Chimerine and Rosso, said that "he was pleased to become part of a public company that shared his vision of the broad potential that the new Empire Diversified Energy, Inc. could unlock in the area," and that he "looked forward to working with Messrs. Chimerine and Rosso and the entire MPIR team."
About Empire Diversified Energy, Inc.
Empire Diversified Energy, Inc. is a full-service company offering logistic and service solutions to the dynamic changing needs of the energy industry. The Company's goal, based on years of demonstrable experience, is to develop a network of logistics and storage facilities to promote international sales of petrochemicals and other materials.
Statements contained in this communication that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements, including our expectations regarding the closing and timing of the bond issuances and receipt of any proceeds therefrom and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected, or described pursuant to similar expressions.
www.EmpireDiversifiedEnergy.com
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SOURCE Empire Diversified Energy Inc.