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NewGen
NewGen Technologies, Inc.
6000 Fairview Road, 12th Floor
Charlotte, NC 28210
(704) 552-3590
www.nwgntech.com
Media Contact: Investor Contact:
Blois Olson Jody Burfening / Chris Witty
New School Communications, Inc. Lippert/Heilshorn & Associates, Inc.
(651) 221-1999 (212) 201-6609
b.olson@new-school.com cwitty@lhai.com
FOR IMMEDIATE RELEASE
NewGen Announces Third Quarter Results
CHARLOTTE, NC, November 21, 2005 - NewGen Technologies, Inc. (OTCBB: NWGN) today
reported financial results the third quarter and nine months ended September 30,
2005.
Highlights
o On September 19, 2005, NewGen formed a joint venture with Advanced
Biotechnology to manufacture biodiesel in Georgia and Florida,
including a plant with capacity to produce 60 million gallons of
biodiesel per year - triple the size of any existing such facility
o On September 30, 2005, NewGen signed an agreement to purchase three
fuel terminals in the Southeast United States. The terminals, with a
total storage capacity of over 10 million gallons and an annual
throughput capacity of more than 350 million gallons, will be used
for the distribution and storage of alternative fuels, including
biodiesel and ethanol blends, as well as traditional hydrocarbons
o Since the end of the quarter, NewGen has announced plans to merge
with Prolong International Corporation, maker of proprietary
lubricants and fuel additives, and form a joint venture with
PowerSHIFT Energy to manufacture biodiesel and supply energy
solutions to several sites across the U.S.
During the third quarter, NewGen began operating as a public company dedicated
to the production, processing, and distribution of premium biofuels. Given its
early stage in development - during which the company has been investing in
biofuel technologies for future manufacture and sale - NewGen did not report any
revenue for the third quarter, which ended September 30, 2005, or for the period
from June 1, 2005 (inception) through September 30, 2005. There is no comparable
revenue for 2004, as NewGen did not exist in its present form at that time.
For the quarter ended September 30, 2005, the net loss attributable to common
shareholders was $1.0 million, or $(0.03) per share. For the period from June 1,
2005 (inception) through September 30, 2005, the net loss attributable to common
shareholders was $2.5 million, or $(0.08) per share.
S. Bruce Wunner, Chairman and CEO of NewGen Technologies, stated, "In a short
period of time, we have demonstrated our commitment to establishing a
significant presence in the global market for biofuels and related technology.
Demand for alternative energy products - and biodiesel specifically - has been
incredible, and we are on track to have production up and running by the end of
2006. We have already identified several manufacturing locations, while our
pending merger with Prolong International will provide access to new customers
and technology to complement our own proprietary products - speeding our time to
market. We are confident that, over time, NewGen will build a leading position
in this growth industry."
Separately, NewGen announced that it has retained the law firm of Richards
Butler, based in London, to represent the company internationally in its
transactions, intellectual property matters, and corporate affairs. Richards
Butler has over 70 years of experience, with offices worldwide and approximately
400 attorneys on staff. Additional information can be found at
www.richardsbutler.com.
About NewGen Technologies, Inc.
NewGen's mission is to be a leading manufacturer, processor and distributor of
premium biofuels that are intended to dramatically reduce the ecological and
economic impact of world petroleum use. NewGen believes that it has developed
the cleanest burning and highest performing fuels in the world by utilizing
technology that allows for more complete combustion, which NewGen believes will
result in improved miles per gallon and significantly decreased harmful
emissions, including reduced carbon monoxide, carbon dioxide, nitrous oxides,
particulates and black smoke. The company's fuel products include proprietary
and complex technology, substantially and predominantly derived from petroleum
sources, which are intended to improve the performance of gasoline and diesel
fuels, as well as domestically-produced and environmentally-friendly alternative
fuels such as Ethanol-based E85 and Biodiesel-based B20. The vision of NewGen
and ReFuel America, NewGen's wholly-owned U.S. subsidiary, is a world less
dependent on oil, using secure, homegrown fuels which better preserve our most
important resources - the air we breathe and water we drink.
Additional information can be found at the company's website www.nwgntech.com.
Safe Harbor Statement Under the Private Securities Litigation Act of 1995 - With
the exception of historical information, the matters discussed in this press
release are forward-looking statements that involve a number of risks and
uncertainties. The actual future results of NWGN and PRL could differ
significantly from those statements. Factors that could cause actual results to
differ materially include risks and uncertainties such as the inability to
finance the company's operations or expansion, inability to hire and retain
qualified personnel, changes in the general economic climate, including rising
interest rate and unanticipated events such as terrorist activities. In some
cases, you can identify forward-looking statements by terminology such as "may,"
"will," "should," "expect," "plan," "anticipate," "believe," "estimate,"
"predict," "potential" or "continue," the negative of such terms, or other
comparable terminology. These statements are only predictions. Although we
believe that the expectations reflected in the forward-looking statements are
reasonable, such statements should not be regarded as a representation by the
company, or any other person, that such forward-looking statements will be
achieved. We undertake no duty to update any of the forward-looking statements,
whether as a result of new information, future events or otherwise. In light of
the foregoing, readers are cautioned not to place undue reliance on such
forward-looking statements. For further risk factors see the risk factors
associated with our Company, review our SEC filings.
NEWGEN TECHNOLOGIES, INC. (Formerly Bongiovi Entertainment, Inc.)
(A development stage company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005, AND FOR THE
PERIOD FROM JUNE 1, 2005 (INCEPTION) TO SEPTEMBER 30, 2005
(UNAUDITED)
For the three For the period from
months ended June 1, 2005 (Inception) to
September 30, 2005 September 30, 2005
------------------------ ------------------------
Revenues $ -- $ --
------------------------ ------------------------
General and administrative expenses 946,246 2,445,642
------------------------ ------------------------
Loss from operations (946,246) (2,445,642)
------------------------ ------------------------
Other (expenses)
Interest (8,998) (20,137)
Bank fees (3,747) (3,747)
Loss from investment in joint venture (14,514) (14,514)
------------------------ ------------------------
Total other (expenses) (27,259) (38,398)
------------------------ ------------------------
Loss before provision for income taxes (973,505) (2,484,040)
Provision for income taxes -- --
------------------------ ------------------------
Net loss $ (973,505) $ (2,484,040)
======================== ========================
Loss per share - basic and diluted $ (0.03) $ (0.08)
======================== ========================
Weighted average number of common
shares outstanding - basic and diluted 33,044,247 32,580,309
======================== ========================
NEWGEN TECHNOLOGIES, INC. (Formerly Bongiovi Entertainment, Inc.)
(A development stage company)
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
ASSETS
September 30,
2005
--------------
Current assets:
Cash $ 816,981
Prepaid royalties 187,500
Other current assets 23,334
--------------
Total Current Assets 1,027,815
--------------
Investment in joint venture 35,486
Deposit on land and improvements 170,000
--------------
Total Other Assets 205,486
--------------
TOTAL ASSETS $ 1,233,301
==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses - related parties $ 500,200
Accounts payable and accrued expenses - other 237,289
Note payable, related party 281,500
--------------
TOTAL LIABILITIES 1,018,989
--------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par value, 10,000,000 shares
authorized, none issued and outstanding --
Common stock, $0.001 par value; 100,000,000 shares authorized,
31,468,524 shares issued and outstanding 31,468
Additional paid-in capital 1,068,323
Common stock to be issued (5,319,500 shares) 2,659,750
Common stock subscriptions receivable (27,581)
Deferred equity-based expenses (1,033,608)
Deficit accumulated during development stage (2,484,040)
--------------
TOTAL STOCKHOLDERS' EQUITY 214,312
--------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,233,301
==============