KNOXVILLE, TN, September 19, 2022 (GLOBE NEWSWIRE) — via NewMediaWire — Blue Earth Resources Inc. (“BERI”) today announced that it has acquired a 100% interest in Fuel Trader Supply, LLC (“FTS”), a Florida limited company, and at the same time has acquired a 100% interest in Fuel , a subsidiary of FTS Trader Resource Management , Inc. (“FTRM”), a corporation incorporated under the laws of the Commonwealth of Puerto Rico, a territory of the United States of America. The purchase was made through a combination of cash and BERI common stock.
BERI will retain its headquarters in Tennessee and will continue to maintain FTS and FTRM offices in Florida and Puerto Rico. William R. Eaton was instrumental in the purchase as he owned or controlled 100% of the outstanding shares of FTS and FTRM. In addition to continuing to lead both wholly owned subsidiaries, Mr. Eaton will also serve as Chief Operating Officer and a member of BERI’s Board of Directors. Other existing officers from both FTS and FTRM will continue to serve in their same positions.
Scott M. Boruff, Chief Executive Officer, stated, “Fuel Trader has long been a trusted strategic partner of ours. The synergies of products and people will greatly enhance our ability to serve our customers. The two companies have enjoyed a close relationship since BERI began operations in Tennessee, and we will combine their product lines with ours to bring the best of both to the industry.”
FTS is a leading bulk supplier of gasoline and diesel products within the Colonial and Plantation pipeline systems. FTS has long-standing supply relationships that allow for the best possible pricing by sourcing and comparing prices from any major US refiner or trading house. The ability to aggregate purchases and service its diverse customer base gives the company a unique competitive advantage. This results in a full suite offering in an end-to-end solution for sourcing economies of scale. FTS reported total operating income of $142,041,375 as of December 31, 2021, the most recently completed year-end.
FTRM provides full-service fuel inventory management solutions, including consulting services for the sourcing, logistics and risk management needs of customers in the petroleum industry. In addition to advising clients, FTRM offers futures execution, hedging strategies and bespoke delivery options via FTS. Since 2014, FTRM has also implemented and developed a shipping program that manages line room capacity on the Colonial Pipeline System. FTRM is a member of the National Futures Association, the Commodity Futures Trading Commission and a guaranteed introducing broker for RJ O’Brien, Inc. RJ O’Brien is a Registered Futures Commission Merchant with the Commodity Futures Trading Commission, a member of the National Futures Association and Clearing -Member of all major US futures exchanges. FTRM reported total operating income of $1,021,518 as of December 31, 2021, the most recently completed year-end.
Will Eaton, Chief Operating Officer, further stated, “The acquisition is very friendly and more akin to a merger, allowing us to combine resources across multiple entities while retaining the established Fuel Trader and Blue Earth brands. We will be able to significantly increase our consolidated sales and at the same time reduce our cash outflows. Integrating the companies will allow us to exploit the inefficiencies in the utility ecosystem and generate additional end-to-end margins. I look forward to working more closely with the BERI team as we have long standing relationships that span decades.”
In connection with the acquisition, BERI has a firm written commitment to EF Hutton, a division of Benchmark Investments, LLC, to act as lead underwriter, deal manager and investment banker in an anticipated public offering of the Company’s equity, debt and/or equity act derivative instruments. In addition, BERI retained Carmel, Milazzo & Feil, LLP to advise and represent BERI on an anticipated filing of the Form S-1 Registration Statement and a possible listing on a national securities exchange.
The acquisition was unanimously approved by the BERI Board of Directors.
About Blue Earth Resources, Inc.
Blue Earth Resources, Inc. (OTCMKTS: BERI) sources refined fuels from refiners and wholesalers and sells them to both large retailers and individual site operators. Our solution offers our suppliers and customers less risk and more stable prices. Additionally, our custom branding services include imaging, design and consulting services to support custom branding. BERI is headquartered in Knoxville, Tennessee. For more information on BERI, see www.berifuels.com.
Statements Regarding Forward-Looking Information
Certain statements contained herein are forward-looking statements, including, but not limited to, statements that are or indicate predictions of future events, trends, plans or goals. Undue reliance should not be placed on such statements because, by their nature, they involve known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future activity and involve many risks and uncertainties. Because of such risks and uncertainties, actual events could differ materially from those projected or contemplated in such forward-looking statements. Forward-looking statements are identified by the use of the future tense or other forward-looking words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “should,” “may.” “will,” “continue,” “strategy,” “position,” “opportunity,” statements about the Company’s “flexibility,” or the negative of such terms, or other variations thereof, or comparable terminology. A discussion of these risk factors is included in the Company’s periodic reports filed with the US Securities and Exchange Commission.
Scott M Boruff, CEO