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March 1, 2004
Capital Environmental acquires Texas facilities, plans corporate HQ move
BURLINGTON, ONT-Capital Environmental Resource and its wholly owned subsidiary, Waste Services, have acquired a new, fully permitted municipal solid waste landfill currently under development in Fort Bend County, Texas, approximately 36 miles southwest of Houston. The 2,700-acre facility, which will serve the greater Houston area, has a permitted capacity of 38 million tons. The landfill is expected open for commercial operation in the third quarter of 2004. Along with the landfill facility, Capital has acquired a leasehold interest for a site in Houston which is fully permitted for the construction and operation of a solid waste transfer station. The transfer station should begin operations in the fourth quarter of 2004. The purchase price for the two sites consists of $10 million (U.S.) in cash and 4,375,000 shares of Capital Environmental common stock. Capital has also announced its intention to reorganize and move its corporate domicile to Delaware. This will require the approval of the Ontario Superior Court of Justice and the company's shareholders. The existing shares of Capital will be exchanged for shares of Waste Services, which is already based in Delaware. The company says this migration will enhance its strategic entry and significant expansion into the U.S. solid waste market, giving Capital greater access to U.S. markets.