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Canadian Waste Recycle Company

The Challenge
This US owned and Toronto based company had developed new technology to recycle hospital waste and personal care products. The Company was cash-flow-negative and dependent on investors for survival. There was a need to develop the process commercially and to expand internationally where disposal fees justified the cost of recycling. The challenge was to find an appropriate location, set up the operation, and restructure the existing corporation while raising the necessary capital for expansion. New management and partners who were willing to share in the ownership and risk were also needed.

The Method
Devonshire Holdings, Inc. took over management of the Company and devised a refinancing and restructuring plan. A new management team was hired in the Netherlands to further develop the technology and to design and build a new waste processing facility. A new marketing and logistics plan was implemented to make the Dutch plant fully-operational and self-sufficient for the future. Construction financing was obtained through De Nationale Inesteringsbank NV ("NIB"), and a commercial loan with the Banque Artesia. Equity investors were found with the aid of a guarantee from the government of the Netherlands for the long-term financing. The Company then expanded its marketing effort into Germany.

The Results
Equity and debt of US $29.0MM plus the Dutch government guarantee were secured. The Company is now a fully-operational recycling corporation in both the Netherlands and Germany. With its newly-created management and marketing team, it maintains a stable revenue stream of US $25.0MM and is poised to expand through Europe.
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