SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Alanco Technologies, Inc. (OTCBB: ALAN) commented today on the May 19, 2014, filing of a Schedule 13D by Iroquois Capital Management, LLC (together with its affiliates) (“Iroquois”), which states Iroquois owns 474,398 shares or 9.6% of Alanco’s common stock. Based upon the Schedule 13D filed, the Reporting Persons purchased the shares based upon their belief that the shares, when purchased, were undervalued and represented an attractive investment opportunity.
Alanco President and Chief Executive Officer John A. Carlson said, “Alanco has a demonstrated practice of maintaining an open dialog with the Company’s shareholders, including Iroquois, and we welcome the input of all shareholders. Our Board of Directors and executive management regularly review the Company strategic priorities and the full spectrum of available options and are always open to receiving constructive input toward our shared goal of increasing long-term value for all of the Company’s stakeholders.
“We continue to have confidence in the Company’s strategic plan to develop, through Alanco Energy Services, Inc., (“AES”), a wholly owned subsidiary, our Deer Creek and Indian Mesa assets. Deer Creek is a produced water disposal facility, located on 22 acres near Grand Junction, CO, with a 300,000 barrel annual capacity that has been operational since late 2012; and Indian Mesa, a 160 acre site, located approximately 4 miles Northwest of the Deer Creek facility, being developed into an 80 acre, 12 pond produced water disposal facility with annual capacity of approximately 750,000 barrels and an 80 acre, 3 million cubic yard capacity landfill for disposal of solid oil and gas waste (O&G), such as drill cuttings, tank bottoms, sock filters, etc. Significantly, the County Use Permit approval for the entire 160 acres also allows for the disposal of Naturally-Occurring Radioactive Material (NORM) and Technically Enhanced Naturally-Occurring Radioactive Material (TENORM) contaminated O&G wastes, including solids and produced water. The Indian Mesa site is still in the permitting phase and is not expected to be operational until early 2015.
“The State of Colorado is in the forefront of recent activity to develop new regulations for permanent disposal of NORM contaminated waste products, most particularly O&G waste materials due to volume and projected growth. We believe that new, more restrictive NORM regulations will be imposed on Colorado oil and gas producers within 12-18 months, which will result in a multi-million dollar market opportunity for approved, logistically attractive NORM O&G disposal facilities. Currently, the only disposal site in the State of Colorado permitted to receive NORM waste is Clean Harbor’s Deer Trail facility in Eastern Colorado. Indian Mesa is anticipated to be the first 'one stop shop' NORM O&G disposal facility in Western Colorado serving Piceance Basin producers, and poised to provide exceptional future value to both potential customers and AES.”
EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS PRESS RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE QUALIFIED BY, RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THOSE STATEMENTS. THESE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO, REDUCED DEMAND FOR OUR PRODUCTS; COMPETITIVE PRICING AND DIFFICULTY MANAGING PRODUCT COSTS; DEVELOPMENT OF NEW TECHNOLOGIES; RAPID INDUSTRY CHANGES; FAILURE OF AN ACQUIRED BUSINESS TO FURTHER THE COMPANY’S STRATEGIES; THE ABILITY TO MAINTAIN SATISFACTORY RELATIONSHIPS WITH LENDERS AND REMAIN IN COMPLIANCE WITH FINANCIAL COVENANTS AND OTHER REQUIREMENTS UNDER CURRENT BANKING AGREEMENTS; AND MARKET RISK ASSOCIATED WITH HOLDING ORBCOMM STOCK.
