TULSA, Okla., Aug. 8, 2003 — American Resource Management, Inc. announced that it has sold its subsidiary, Promulch Services, Inc. to an investor group in the Southeast for $800,000 in a five-year secured note.
ARMM management had previously forecast that Promulch would exceed $1,900,000 in revenue for fiscal 2003. However, cutbacks in state highway mulching contracts that had been awarded to Promulch caused a significant decline in anticipated revenue and contributed to a significant operating loss for fiscal 2003.
In a separate transaction, ARMM has rescinded its agreement to acquire Sand Hills Pine Straw, Inc. due to the economic and political chaos in Venezuela. Venezuela was the main source of pine straw for Sand Hills Pine Straw, Inc. The continued possibility of pine straw supply disruption caused ARMM to reconsider its planned acquisition of this mulching related business.
ARMM management plans to refocus its efforts on acquiring energy-related companies, primarily in resource conservation and energy development.