ST. CLOUD, FL — (Marketwired) — 10/24/13 — RenuEn Corporation (OTC Pink: RENU) a Renewable Energy Development Company, announced today that their wholly owned subsidiary Team Energy, Inc. has notified the City of St. Cloud that they are withdrawing from the development and construction of the St. Cloud Landfill project. In addition, the company announced that it has filed a lawsuit in the Circuit Court of the Ninth District in Orange County Florida against HSA Golden Engineering for breach of contract, negligence, professional malfeasance, excessive billing, quantum merit and unjust enrichment.
Don Wood, CEO of RenuEn stated, “I am very disappointed that after 3 years of hard work trying to get this project completed, we had to finally walk away. Although we were fully prepared to proceed with the project, the gross negligence of our past engineers, as well as the added burden of an automatic termination clause if –substantial work– was not completed by November 14th has overwhelmed any financial upside we could have achieved. The time element that the City placed on us, the lack of definition as to what –substantial work– entailed, coupled with the fact that some of the Council Members did not fully support this project meant we had no buffer to avoid severe financial penalties. The most severe impediment to this project was that HSA Golden failed to address substantial life safety issues in the initial drawings. This hindered our ability to obtain the final construction permit. When HSA refused to provide us with the work product that we paid for, it forced us to begin the engineering process from the beginning. Combined, these factors became too large of an issue with our investment and equity partners, ultimately leaving us with no other choice but to terminate this project.”
Woods further states, “We have filed a lawsuit against HSA Golden seeking damages in excess of one million dollars. We feel that their gross incompetence caused delays that essentially crippled us in our ability to start this project.”
Jeff Nemes, COO of RenuEn states, “Although this cancellation is very frustrating, we have already identified, and are in late stage negotiations and testing of a larger, more profitable landfill in Florida. All of our finance and equity partners are committed to supporting this landfill. This landfill will actually be less costly to construct since it is an open landfill versus a –closed– landfill like St. Cloud. The potential profitability to the company and our shareholders is much greater. An open landfill with a constant and continuous feedstock has a much more predictable performance and is subject to less degradation over time and can last many more years than the ten year prediction of St. Cloud.”
Nemes Further stated, “The St. Cloud landfill is only one small piece of the growth model for RenuEn, and the withdrawing from the project will not have a negative impact on the financial growth of the company. In fact, we are having substantial success with our Energy Solutions division and we are in negotiations to build a fueling station to support clients who wish to convert their fleets to CNG. We will be updating the shareholders on the status of sales, revenues and growth projections on our next conference call which will be announced at the filing of our 3rd Quarter report in the next few weeks.”
RenuEn Corporation is a Renewable Energy Development company. The company focuses on Landfill Compressed Natural Gas capture, International Renewable Power projects and the development of solar, geothermal and other renewable energy strategies.
Forward Looking Statements: Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RenuEn Corporation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. RenuEn Corporation assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors. There may be other factors not mentioned above that may cause actual results to differ materially from those projected in any forward-looking statement. We assume no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by applicable securities laws.
Contact and Inquiries for Investor Relations:
Michael Irving
Paramount Advisors, LLC
407-878-5462