Paul J. Hill of Business
M-.11 School

Richard

School of Business

The University of Western Ontario

IVEY
9B12M032

PHASE SEPARATION SOLUTIONS (PS2): THE CHINA QUESTION

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Later

that year, however, PS2 decided to divest it to focus its resources on the Wolseley facility, in response to

the eontaminated soil market that had opened up significantly since the acquisition. The soil treatment

market in Canada received a big boost in late 2008, when the federal government introduced new

regulations that established deadlines for ending the use and long-term storage of both PCBs and products

containing PCBs. The new regulations also required that these products be sent for destruction by the end

of 2009 (later extended to 2011). Such a policy change resulted in a strong demand for PS2's TPS

technology: subsequent to this announcement, PS2 secured contracts for 2009 and into 2010, utilizing 80

per cent of its capacity at its Wolseley facility.

1Summarized from: Phase Separation Solutions Inc., http://www.phaseparation.com/index.html; Fundamental Research

Corp., "West Mountain Capital Corp. (TSXV: WMT)-lnWating Coverage-Thermal Treatment of Soil, Sludge and Other

23,
2010,

Waste
Streams,"
March http://www.baystreet.ca/articles/research_reportslfundamentaLresearchlvVestMountainCapitaI040110,pdf; "Investment Fund

Sees Gold In Clean Dirt," Dailv Commercial News and Construction Record, December 19, 2005,

http://dcnonl,com/articleI20051219300. All web links in this case were accessed in February and March 2012

2 All currency amounts shown in Canadian dollars