Appraised Assets Provide Significant Leverage to LCTI’s M&A and J.V. Model
Vancouver, British Columbia, April 15, 2013 LCTI Low Carbon Technologies International, Inc. (PINKSHEETS: LWCTF), a USA based diversified company focused on the Clean-tech, Construction, Energy, Environmental, Mining and Real Estate business sectors, announced today the company’s technologies received a third party valuation of approximately $142+ Million from distinguished appraisal firm Marshall & Stevens, affording management continued leverage for its successful M&A and J.V. business model as the company has formed a joint venture with Hubard Engineering Services (“Hubard”).
“The third party valuation of our technologies by Marshall Stevens greatly substantiates aspects of our overall value,” stated Bryan Scott Jarnagin, CEO and Chairman of LCTI Low Carbon Technologies International.
Employing a model where LCTI generally issues sub-licenses or makes other asset contributions to third parties for each technology, the Company’s cash expenditures are normally kept low while the use of stock equity as consideration is intently limited. In exchange for the appraised technology licenses, LCTI receives project or company equity and licensing royalties. This is precisely how LCTI was able to acquire Northwest Critical Minerals. Similarly, LCTI will “secure an interest in a joint venture with one of Mexico’s prominent family businesses,” said Jarnagin.
The $142mm valuation is comprised of technologies the company controls relating to clean-tech. Leveraging certain technologies, LCTI has structured a 50% equity position in the joint venture with Hubard Engineering Services. This arrangement, once consummated, will strengthen shareholder’s equity and further fortify the company’s management – bringing on Gerardo Hubard as Head of LCTI Mexico Relations and Operations.
Hubard is a family business whose origins date back to the pioneering of concealed electrical installations in 1906, Mexico. In 1987 Hubard became the first Mexican firm of its sector to sign a strategic alliance with General Electric as well as entered into a joint venture with San Diego based Facility Automation Systems, Inc. [establishing HUBARD / FAS of México].
Hubard should positively contribute to what management believes will be a prosperous fiscal 2013. Based on transactions completed during the first two quarters of 2013, people close to the company anticipate that LCTI should be on track to double its revenues, possibly increasing its Fiscal 2012 EBITDA of $8.178mm considerably.
Mr. Jarnagin concluded, “We believe we are in a strong enough position to continue growing shareholder equity so long as we remain true to the business model that has solidified our current solvency. If successful, LCTI should be the benefactors of at least two additional acquisitions [fiscal 2013] we anticipate could further build shareholder value.
“We are confident that what we have accomplished in the past 6 months will be well received when we release our financials.”
Management expects to announce its YTD fiscal numbers sometime this week.