CHICAGO, Nov. 30, 2021 /PRNewswire/ — CMG Holdings Group, Inc. (OTC:CMGO) today announced it has entered into a joint venture with North Jersey Petroleum Partners LLC (NJPP) a provider of groundbreaking eco-friendly “upgrading” technology that increases the value and quality of low-grade petroleum by removing impurities and reducing sulfur at profits of approximately $ 6 to $10 per barrel. NJPP anticipates its new Magnetic Vacuum Upgrading (MVU) technology will quickly be seen as a disrupter in the oil treatment market; rivaling thermal and catalytic cracking methods currently used for upgrading crude/fuel in refineries today, which are highly pollutive and costly to build. This patent pending, cost efficient “green technology” is owned by New Vacuum Technologies, LLC (NVT) and is sub-licensed to NJPP by New Vacuum Technologies USA LLC, a subsidiary of NVT. Terms of the JV include a CMG investment in the form of a one million-dollar loan for 10% of the joint venture in NJPP’s oil treatment facility, located in northern New Jersey. NVT successfully installed and tested its MVU technology at a prototype plant in Southern New Jersey during the fall of 2020. Research is currently underway to determine if MVU technology qualifies for carbon credits, which would add significantly to profitability, as NVT works toward its goal of rolling out its environmentally friendly, cutting-edge technology to upgrade crude oil on a commercial scale in Q1 2022.
“With new regulations limiting pollutants – especially sulfur – we anticipate the emerging proprietary treatment technology market for petroleum products to be very profitable,” said CMG CEO Glenn Laken “enhancing the value of lower priced, low grade petroleum feedstocks with MVU technology to produce a higher quality product that can be sold at a premium using environmentally sensitive, more cost- effective technology is a win-win for everyone.” He explains, “When upgrading heavy and sour fuel oil to a medium to low sulfur fuel, the spread between the price of the crude before and after treatment determines profit. Assuming potential profits per barrel in the range of $ 6 to $10 per barrel the JV should realize a net profit margin between $900,000 and $1.5 million dollars per month. As a 10% member of the LLC, CMG’s share should equate to between $1,080,000 and $1,800,000 annually.” He adds, “In the short term during the next 12 months the JV plans to install 1 to 3 more processing units, enabling 10,000 to 20,000 bpd in production. If we reach the goal of 4 units CMG can earn approximately $3.6 million to $7.2 million annually. Assuming the JV can achieve its goal of installing 8 units – the maximum number that can be installed at the processing facility currently being used by NVT – processing capacity can reach 40,000 bpd and achieve profit levels of approximately $7,200,000 to $18,000,000 per month ($86,400,000 to $216,000,000 annually). CMG’s share as a 10% member would be from $8,600,000 to $21,600,000 annually.”
NVT’s partners combine over 75 years of technology, business development and management skills with over 50 years of oil industry upgrading experience in North America, South America and Europe. The Company’s principals led a state sponsored research institute specializing in petrochemical technologies for over a decade and a half before creating NVT. Their research into physical vacuum and quantum tunneling on viscosity and other physical properties of fluids, resulted NVT’s technology to upgrade crude oil quality.
CMG Holdings has signed a $500,000 financing agreement with an institutional investor, with use of proceeds targeted to fund the NJPP venture, in addition to our previous loan. Terms include a junior note with 10% interest rate, a one-year maturity, and a modest redemption premium. It is currently contemplated for the loan to be repaid by end of Q1 2023. “We are very excited about this venture and the creation of the JV. I’d like to thank all of our CMGO shareholders for their interest and loyalty and view this as a watershed event for our organization,” Glenn Laken said. For further information, contact CMG for A non-disclosure agreement with NJPP and NVT, which must be signed before additional technical information can be shared. To access the NDA, go to https://www.cmgholdingsinc.com/.
Disclosure Statement Statements in this press release about our future expectations, including without limitation, the likelihood that CMG Holdings Group, Inc. will meet minimum sales expectations, be successful and profitable, bring significant value to its stockholders, and leverage capital markets to execute its growth strategy, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. CMG’s business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing and materially decreases its convertible debt. No information in this press release should be construed in any form shape or manner as an indication of the Company’s future revenues, financial condition or stock price.
Contact:
www.cmgholdingsinc.com
(773)698-6047
glennbrlaken@gmail.com
SOURCE CMG Holdings Group, Inc.
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