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Eco-Safe Systems USA (ESFS)
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Wednesday, October 8, 2008 Green Baron New Focus Pick Report Eco-Safe Systems USA (OTCPK: ESFS - .08 per share) Common Shares Outstanding / 83.8 million Total Authorized Shares / 100 million Total Float / 18,482,877 Total Restricted / 65,316,955 Current Market Cap / $6.7 million 52-Week High / $.83 per share 52-Week Low / $.05 per share Average Price / $.116 (50-day) $.268 (200-day) Average Volume / 65,700 (50-day) 46,800 (200-day) Creating Safe Food and Water for the Planet Eco-Safe Ozone Disinfection Systems Key to Increase Profit in Supermarkets and Restaurants by Increasing Shelf Life of Food by 4 to 25 days Eco-Safe NATURAL-CLEAN Ozone Laundry Systems offer Major Savings to Hotel Chains When was the last time that you researched a Company to find that it truly appears to have the right product at the right time? Most often, a great product is not yet built or is too early for the marketplace to accept. Other times, a company cannot overcome the challenges to mass produce or gain acceptance from buyers. We visit and talk to different companies just about every day, and are lucky to find one in a hundred that really stands out. Rarer still is when the fundamentals scream for a higher valuation and the stock can be purchased near all-time lows. Please take a few moments in this challenging time for investment to consider a truly “green” stock that makes all the sense in the world. The Green Baron Report is proud to announce that Eco-Safe Systems USA, Inc. (OTCPK: ESFS) is officially our 71st fully profiled stock and will be added to our storied list of previously profiled stocks on our home page. Results compiled from the most recent trade possible prior to dissemination of this report to the subsequent high will be monitored at www.thegreenbaron.com. Although we have very aggressive short and long term expectations for this stock, we still suggest our members try to accumulate shares as close to today’s profile price as possible. Eco-Safe Systems is focused on marketing products that dissolve ozone gas in water, producing an antibacterial wash that can kill bacteria instantly for the food industry. After 20 to 30 minutes, ozone decomposes into oxygen without leaving any residue. Eco-Safe products deliver ozone where it is needed and at the right concentrated levels. The Company is able to adapt its systems to suit the client’s space and needs. Ozone reduces liability to any food provider and increases shelf life significantly. An ozone water wash-down system provided by Eco-Safe Systems will instantly kill food-bourne pathogens increasing the shelf life, for example, of seafood (4-15 days), lettuce (25 days), meat (5-10 days) and broccoli (15 days). Extraordinary Benefits of Ozone:
Supermarkets operate on a razor-thin profit margin of just over 1% of sales. The waste alone from the Meat, Seafood, and Produce Departments is greater than this profit. This means when Eco-Safe Technology saves at least 25% of the spoilage from the departments, a supermarket raises its profit margin by over 25%, and realizes a return on its investment in just months. The list of reasons to own Eco-Safe Systems could run for pages, but we have narrowed them down to our top ten:
Technically, ESFS stock bounced off of a year low of .05 per share two weeks ago after it appeared an investor might have been sold out of a position due to heavy overall losses in the market. Prior to this big volume day, the year low for ESFS was .10 per share. The stock bounced back up to .115 per share last week, but has pulled back yet again after more general market weakness. Resistance from the 200-day moving average is way up at over .26 per share, and the 52-week high is .83 per share. We view ESFS as way oversold and ripe for a major move up as the Company locks up new contracts and more investors discover this gem.
As promised, we have arranged it so that you can make money by referring people to Eco-Safe that you may already know. Please ask yourself:
If so, send us an email to contactgreenbaron@roadrunner.com with your contact information so we can connect you with the proper person at Eco-Safe. If they are not working with the Company you refer, Eco-Safe will pay a 3% finder’s fee to you based on any gross sales that result. About Eco-Safe Systems USA, Inc. Eco-Safe Systems, based in Los Angeles, CA, is the manufacturer of patented and patent pending water treatment and water reclamation systems. Its technologies produce ozonated water at significantly less maintenance cost and greater energy savings than our competitors. The Company currently offer supermarkets and restaurants a cost effective way to safely extend the shelf life of meat, poultry, seafood, fruits and vegetables. Additionally, its Natural-Clean Ozone laundry system can help commercial laundries eliminate most chemicals and save money on heating and water costs while extending the life of fabrics. Eco-Safe’s acquisition of Ozonetics, an ozone disinfection company based Albuquerque, NM, was completed in September 2008 with critical sanitation applications to the enormous dairy industry. Other plans include distribution of water purification and desalinization products to luxury home, RV and boating markets. Expanding Markets Eco-Safe Laundry Systems Eco-Safe is implementing a major thrust with Ozone Laundry Systems. Its Ozone Laundry Systems have been in place in a 500 room Hawaiian hotel and an Army base for over 5 years during its R&D phase, and is just now moving into commercial laundry operations in Southern California and beyond. Ozone works best in cold water eliminating the cost of heating water. Detergents need only be used for situations such as heavy grease removal. It requires only one rinse cycle saving water and time for labor. Finally, since detergents and other laundry chemicals cause extra wear and tear on fabrics, ozonated laundry lasts longer, feels softer, and looks brighter. Eco-Safe Animal Care Eco-Safe has broken new ground in installing Ozone Disinfection Systems in the pet care industry. Doggy Day-Care facilities are the fastest growing service industry in the pet care market, and they are desperate for sanitation technology to prevent the spread of disease and prevent odors. Eco-Safe Ozone Systems, of course, serve these needs better than any other means available. Eco-Safe Desalination Eco-Safe is negotiating contracts with Oceanside Resort and Hotel industries in Mexico where seawater is plentiful, but fresh water is not. By providing desalinated water to such communities but maintaining ownership of the facilities, Eco-Safe can provide pure water and maintain a profitable revenue stream for the foreseeable future. Flo/Pure Whole-Home Water System The Eco-Safe Flo/Pure Water System offers a level of water purity and sanitation previously unavailable. Marketed through builders of high-end homes, the Flo/Pure system will be an attractive add-on in the luxury home market, providing bottled-water quality in every tap. Eco-Guard RV The Eco-Guard RV Water System will offer better than bottled water quality, with the safeguard of Eco-Safe Ozone disinfection. RV’s are notorious for having water systems contaminated with bacteria. The Eco-Guard system will make the need for bottled water a thing of the past for RV users. Recent Key Announcements October 7, 2008 – Eco-Safe Announces Upcoming Special Stockholders Meeting - LOS ANGELES, CA – Eco-Safe Systems USA, Inc. (PINKSHEETS: ESFS) is pleased to announce an Annual Stockholders’ Meeting scheduled for 11:00 a.m., Monday, November 24, 2008, to be held in The Palisades Room of the Courtyard by Marriott, 15433 Ventura Blvd., Sherman Oaks, CA 91403. Michael Elliot, President of Eco-Safe, said, “We plan a very positive report for our stockholders this year. Our financials are good, orders keep coming in, and the Canadian Food Inspection Agency (CFIA) has just informed us they will be listing our MD-1500 and R-1000 Ozone Systems for use in Canada.” “Also, the first installation at Seafood City, a leading seafood retailer, has been so successful that they are speeding up installation of subsequent Eco-Safe Ozone Disinfection Systems. Further good news, Eco-Safe is in the final stages of negotiation with a Five-Star Hotel for a laundry system, and is negotiating with a large poultry operation for a wastewater treatment and reclamation system. As several efforts are nearing completion, we hope to have even further positive announcements to our stockholders at the meeting,” said Elliot. September 16, 2008 - USDA & FDA Regulated HACCP Training to Be Integrated Into Eco-Safe Services - Eco-Safe Systems USA, Inc. (PINKSHEETS: ESFS) announces future integration of HACCP (Hazard Analysis and Critical Control Points) training into services offered to Eco-Safe clients through certification of Eco-Safe staff.HACCP is a systematic preventive approach to food safety. HACCP programs for the meat and poultry industries are regulated by the USDA, and HACCP programs for seafood are regulated by the FDA. Michael Elliot, President of Eco-Safe, said, "Victor M. Ramirez will be overseeing the HACCP certification of Eco-Safe staff. Victor is President of Stealth Logistics, a company which has instituted and administered HACCP programs in North America and Europe for twelve years. This will allow us to provide another valuable service to our clients and make our Disinfection Systems even more valuable." According to Mr. Ramirez, "Throughout my company's history, I have never found a product that helped to revolutionize my HACCP programs like Eco-Safe's Ozone Disinfection Systems. Eco-Safe Systems have made a great contribution to the application of SSOP (Sanitation Standard Operating Procedures). In the past I had to worry about traceability of the chemical compounds I was using to kill bacteria as required by law." "The use of Eco-Safe's Ozone Disinfection Systems has now given me the ability to save hundreds of hours on paperwork as well expedite inspections and audits by Federal, State, and Local regulatory agencies." "The use of Ozone affords us extra time necessary to focus on the HACCP Plan itself, thus creating a golden image and reputation to our customers. Also, Ozone is a great bacterial 'immunizer' and gives my customers the ability to promote their image as Green Companies for the minimum amount of chemicals used during sanitation procedures, as well as preserving the labeling of Organic products." September 9, 2008 - Eco-Safe Finalizes Acquisition of Ozonetics, Inc. - Eco-Safe Systems USA, Inc. announces completing the acquisition of Ozonetics, Inc., an ozone disinfection company, based in Albuquerque, NM, currently focused on the dairy industry. Michael Elliot, President of Eco-Safe, said, "We are pleased to have acquired Ozonetics, Inc., and look forward to rapidly expanding into the U.S. dairy industry. Ozonetics is in the final stages of testing for the Department of Agriculture, and has met with Agriculture Officials last week in that regard. Pending final government approval, a large commercial dairy company with more than 100 herds of cattle has already indicated a desire to install the new Eco-Safe System, to be marketed under the name, 'Dairy-Safe Ozone Disinfection Systems.' "We are also pleased to announce that Jim Gray, formerly head of Marketing and Development for Ozonetics, has been chosen to head Eco-Safe's Dairy Division and bring our Dairy Systems to market. Jim is currently coordinating efforts with Eco-Safe's Chief Technical Officer and Head Engineer regarding system design." Dairying is the number one agricultural business in nine states, including California and New Mexico. New Mexico has the largest average dairy herd size in the nation, nearly twice as large as any other state. Eco-Safe Systems, a leader in Green-Technology, focuses on Ozone food-safety and water-purity intervention systems with services ranging from food disinfection to water reclamation and water desalination. Eco-Safe believes its patent-pending processes raise the bar on food safety and environmental sustainability, while decreasing costs and risks to businesses, the public and the planet. September 2, 2008 - Eco-Safe Signs Supermarket and Restaurant Chain - Eco-Safe Systems USA, Inc. announces the installation of Eco-Safe Ozone Disinfection Systems in the Seafood City chain of Supermarkets and Restaurants. Seafood City owns and operates 30 Supermarkets and Restaurants throughout California and Nevada, and plans on integrating Eco-Safe Ozone Disinfection systems throughout their chain. The initial commitment is to install Eco-Safe's largest Ozone Disinfection Systems in four of their supermarkets. Michael Elliot, President of Eco-Safe, said, "We are very pleased to add Seafood City, another chain of Supermarkets and Restaurants, to our list of clients. Seafood City did extensive testing of our Ozone Disinfection Systems and found their performance was so good that they could abandon costly and inferior technologies previously employed in their stores. "The Food Industry is beginning to understand and appreciate Eco-Safe green technology and the value it adds to their operations." August 11, 2008 - Seafood Processor Chooses Eco-Safe to Expand for Large Markets - Eco-Safe Systems USA, Inc. announces that when a well known Los Angeles Seafood Processor recently expanded into larger facilities in order to serve large grocery chains, they chose Eco-Safe Ozone Disinfection Systems as their primary disinfection system. Upon receiving the order for the Eco-Safe system, Michael Elliot, President of Eco-Safe, said, "Our disinfection systems sell themselves, which is allowing us to outpace our sales for 2007 this year. This is a client familiar with Eco-Safe, so when they expanded into a new facility more than twice their original size, they did not hesitate to purchase a $50,000 system. "This client processes and prepares pre-packaged seafood products for major U.S. retail outlets, including one of the leading U.S. grocery chains, so product quality and safety are extremely important issues. They leased one of our smaller systems for use in their original location for a number of years, so they were quite familiar with the many advantages of Eco-Safe Ozone Disinfection Systems." July 8, 2008 - Eco-Safe Announces $15M Funding Initiative for Supermarkets - Eco-Safe Systems USA, Inc. announces a Funding Initiative of up to $15,000,000 to make Eco-Safe Ozone Disinfection Technology cost-free to Supermarket Chains. Eco-Safe has just negotiated with a private investment group for up to $15M in capital. This will provide funding to dramatically increase the rate at which Eco-Safe Technology can be purchased by Supermarket Chains at zero net cost. Studies have proven that Eco-Safe Ozone Disinfection Systems make money for Supermarkets by decreasing spoilage in the perishable departments of Meat, Seafood, and Produce. According to a recent survey of over 10,000 supermarkets, reducing waste in these departments alone can substantially boost their profits. Michael Elliot, President of Eco-Safe, said, "Having teamed up with an investment group, we are offering a 6 month deferred payment plan which gives the supermarkets a huge window of opportunity to pay for the Eco-Safe System from the surplus profits accumulated during the 6 months free use of our units. It is truly a unique win-win situation." Elliot added, "In this tight economic climate, we can now provide our preferred clients with a deferred payment plan, where the savings of the Eco-Safe System pays for itself. We believe so strongly in our Systems and their benefits to the Supermarket Industry that we are willing to put up the money to save food and increase profits when food costs are skyrocketing. We are in the process of contacting every major Supermarket Chain in the United States with this offer." To view the documentation detailing how significant Eco-Safe prevention of spoilage can be to the Supermarket Industry, visit www.ecosafeusa.com/SupermarketSurvey.pdf. July 1, 2008 - Eco-Safe Releases 2007 Certified Audit - Eco-Safe Systems USA, Inc. (Other OTC: ESFS) releases its 2007 Certified Financial Statement prepared by Mendoza-Berger. The audit shows Eco-Safe profitable for the year 2007, with over 150% growth from 2006. Michael Elliot, President, said, "We are very pleased to be able to release our latest Certified Audit showing Eco-Safe as a profitable company with strong growth. Since Eco-Safe is a non-reporting company, we did not need to commission this audit, and few companies in our position would do so. However, Eco-Safe ordered this independent audit to provide our shareholders and bankers with the most accurate information possible." To view the Eco-Safe 2007 Certified Audit, please visit: www.ecosafeusa.com/CertifiedAudit2007.pdf. June 17, 2008 - Eco-Safe Announces Results of Challenge Study of Ozone vs. Chlorine - Eco-Safe Systems USA, Inc. is pleased to report excellent results from a commissioned challenge study of disinfection effectiveness of ozone vs. chlorine. Several months were spent designing testing protocols for a study which would measure the relative killing power of ozone vs. chlorine against Salmonella spp, Staphylococcus aureus, and E. coli O157:H7. This study was commissioned by Eco-Safe upon the request of a large fast-food restaurant chain. The study was designed through the joint efforts of Dr. Al Baroudi, President of Food Safety Institute, International (FSI) and the restaurant chain mentioned previously, and was executed by a reputable third party commercial institution licensed to handle and study pathogenic bacteria in the U.S. The data generated in this study proved the Eco-Safe ozone wash procedure to be 10 times more effective than a 20 parts per million (ppm) chlorine wash on produce tested with a high bacterial load. Chlorine at 20 ppm is the historical disinfectant of choice when a kill intervention process is applied for produce items destined for public consumption in the fast food and retail foodservice industry. However, during the investigation phase of project planning, it was discovered that in many cases, end-point distributors of these products do not utilize a chemical wash procedure of any type, including chlorine. For this reason, Eco-Safe Ozone Disinfection Systems are designed to automatically provide disinfection to the water whenever the tap is turned on, requiring no special employee intervention or training. Michael Elliot, President of Eco-Safe Systems USA, Inc., said, "Although there are many published scientific studies which document the superiority of ozone vs. chlorine disinfection, one of our prospective clients requested a specific study pitting ozone and chlorine against certain deadly bacteria found in our food supply. As anticipated, this study found significant benefits from using ozone rather than chlorine disinfection, not the least of which is ozone's green, organic protection, creating none of the carcinogenic by-products associated with chlorine. "One of the factors which warranted such an expensive study was the demand that the testing conditions conform to real-world situations in the foodservice industry. We went to great lengths to refine testing procedures which would speak directly to our clients' needs," added Mr. Elliot. "E. coli 0157:H7 devastated the spinach industry 2 years ago and Salmonella saintpaul has already crippled the tomato industry this season. Ozone water disinfection can deliver many benefits which will increase food quality and safety at a lower cost to producers and processors," said Dr. Baroudi. He added, "At a time when some consumer victims are paying for this unnecessary agony with hospitalization, or even death in some cases, as well as when the nation's growers, brokers, restaurants and food retailers are suffering from millions of dollars in lost business, Ozone Disinfection is a government-approved intervention process which can be used for safety, illness prevention, and to rebuild consumer confidence in the food industry." Green Baron Conclusion Eco-Safe Ozone Disinfection Systems provide undeniable benefits to supermarkets and restaurant owners. Testing now in place at several well known retailers should evolve into sales soon. We are confident that each new sale will add further credibility to proving the significant cost benefits. As our worldwide food supply continues be confronted by new types of bacteria and disease threats, it is becoming increasingly apparent that more retailers will consider Eco-Safe products than face liability risks. The increase in shelf life to food is amazing, and it is reported that seafood smells virtually disappear with use of the Eco-Safe systems. The market size for Eco-Safe products in targeted areas is simply staggering. The Company has spent several years proving its products, and now it is just beginning to pay off. The Green Baron Report sees massive upside for ESFS stock, and a move back up to at least .60 per share over the next six months is extremely reasonable even in this market. We strongly suggest members accumulate at current prices, and we expect to see you at the stockholders meeting in late November with smiling faces. For Further Information Contact: Eco-Safe Systems USA, Inc. President – Michael Elliot (800)649-1434
Investor Relations & Communications: Worldwide Financial Marketing, Inc. USA Int’l: 1-954-360-9998 U.S.: 1-866-360-9998 |
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