Attis Industries announced its execution and closing on a series of transactions effective May 25, 2018, including the acquisition by the company’s subsidiary of a 49% stake in Genarex FD, and the restructuring of the company’s November 2017 acquisition of Advanced Lignin Biocomposites (ALB) to reduce the associated expense and liabilities by about 50%, or by about $1,350,000.
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Genarex is a technology development company focused on refining low-cost renewable feedstocks into functional biofillers for use in value-added plastics applications, with an emphasis on converting corn ethanol coproducts due to the large volumes, low costs as compared to conventional feedstocks, and high post-conversion values.
The transaction adds Genarex’s extensive portfolio of strategically-compatible biorefining technologies, existing commercial pilot capabilities, and established product and project development pipelines to the company’s growing biorefining capabilities.
Genarex is capable of recovering about 1.1 pounds of biobased plastics additive per gallon of ethanol produced, which equates to an expected $11 million in new EBITDA from each 100 million gallon per year ethanol facility.
Under applicable agreements, the company agreed, in pertinent part, to pay an aggregate purchase price of $2,266,667, plus 8% of the EBITDA and certain material transaction proceeds of the company’s Innovations group.
An initial payment was made at closing in the form of 1,000,000 common shares and 22,600 of the company’s Series G preferred stock.
The preferred stock converts into common stock at the greater of $0.50 per share or 100% of the prevailing market price for the thirty days prior to conversion, up to a maximum of 9.9% of the company’s issued and outstanding common stock.
The agreements require the company to register the shares by August 31, 2018, and for all sales thereafter to be limited to the greater of $50,000 or 50,000 common shares per month, amongst other conditions. ■