8-K: Deep Green Waste & Recycling Sells AMWASTE Assets for $185,000

Deep Green Waste & Recycling, Inc. has completed the sale of substantially all assets of its subsidiary, DG Research Inc, dba AMWASTE, for a total of $185,000.

Summary

• Deep Green Waste & Recycling, Inc. sold the assets of its subsidiary, DG Research Inc, known as AMWASTE, to Amwaste of Georgia, LLC for $175,000.
• Simultaneously, certain assets owned by Bill Edmonds, Deep Green's CEO, were sold to the same buyer for $10,000.
• The total purchase price for all assets was $185,000.
• The sale included intellectual property, equipment, business licenses, contracts, customer accounts, and leases.
• Excluded from the sale were cash, most accounts receivable, corporate records, and certain specific assets.
• The buyer assumed liabilities related to the acquired contracts and leases, but not other liabilities of the sellers.
• The agreement includes a 60-month non-compete clause for the sellers within a 100-mile radius of Glynn and McIntosh Counties in Georgia.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the document reports a completed transaction, but the relatively low sale price and the non-compete agreement suggest a mixed outcome for Deep Green.

Positives

• Deep Green successfully divested its AMWASTE business, generating $185,000 in proceeds.
• The sale allows Deep Green to focus on other aspects of its business.
• The non-compete agreement protects the buyer's investment in the acquired assets.

Negatives

• Deep Green sold substantially all of the assets of its subsidiary, DG Research Inc, dba AMWASTE, for a relatively low price of $185,000.
• The sale excludes most of the accounts receivable, which may indicate a weakness in the business's financial health.
• The company is now restricted by a non-compete agreement for 60 months.

Risks

• The sale of assets may impact Deep Green's future revenue streams.
• The non-compete agreement may limit the future business opportunities for the sellers.
• There is a risk that the buyer may not be able to successfully operate the acquired business.

Future Outlook

The document does not contain any specific forward-looking statements or guidance for Deep Green Waste & Recycling, Inc.

Management Comments

• Bill Edmonds, Chief Executive Officer of Deep Green Waste & Recycling, Inc., signed the report on behalf of the company.

Industry Context

This transaction reflects consolidation within the waste management industry, where smaller companies are often acquired by larger players to expand their market presence and operational capabilities.

Comparison to Industry Standards

• The sale of a waste management business for $185,000 is relatively small compared to larger industry transactions.
• For example, Waste Management Inc. and Republic Services Inc. are major players in the industry and often acquire companies for much larger sums.
• The sale price suggests that AMWASTE was a smaller operation or had limited assets compared to larger waste management companies.
• Comparable transactions for smaller waste hauling businesses often involve similar asset transfers, including trucks, containers, and customer contracts.

Related Party Transactions

• The sale included assets owned by Bill Edmonds, the CEO of Deep Green, indicating a related-party transaction.

Stakeholder Impact

• Shareholders of Deep Green will see a change in the company's asset base and potential revenue streams.
• Employees of AMWASTE may be offered employment by the buyer.
• Customers of AMWASTE will now be served by Amwaste of Georgia, LLC.

Next Steps

• The buyer will take over the operations of the acquired business.
• The sellers will be restricted by the non-compete agreement.
• The parties will finalize the transfer of assets and contracts.

Key Dates

Keywords

asset sale, waste recycling, AMWASTE, acquisition, non-compete, business sale, waste collection, intellectual property, contracts, equipment