Innovations Group Adds to Rapidly Growing Portfolio of Biorefining Technologies
MILTON, GA, May 29, 2018 (GLOBE NEWSWIRE) -- Attis Industries Inc. (NASDAQ: ATIS) (the “Company” or “Attis”), a diversified innovation and technology holding company, today 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 LLC (“Genarex”), and the restructuring of the Company’s November 2017 acquisition of Advanced Lignin Biocomposites LLC (“ALB”) to reduce the associated expense and liabilities by about 50%, or by about $1,350,000.
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.
“The Genarex team is converting plant-based proteins and carbohydrates into polymerized materials with proven application potential in an array of bioplastics applications,” said Jeffrey Cosman, the Company’s chief executive officer. “They’re integrating deoiled corn ethanol coproducts at pilot scales into grocery bags, vinyl flooring, carpets, and so on. They’re talking to early adopters, ethanol producers, and manufacturing partners. They’ve developed a strategically-valuable feedstock model that is directly relevant to our growing technology portfolio and biorefinery construction and consolidation ambitions. We’re already talking to some of their relationships about that very objective. We’re excited to complete this acquisition and we look forward to working with the Genarex team.”
The Company previously announced its plans to select at least two sites in 2018 for the construction of biorefineries designed to convert biomass into high value, sustainable, and environmentally-friendly products.
A corn ethanol facility generates about 6 pounds of byproduct per gallon of ethanol produced. The byproduct is referred to as DDGS, or distillers dried grains with solubles, which is sold as an animal feed ingredient. However, there are certain components within the DDGS that are of little value to animal nutrition. Genarex has developed a process to remove those components for use in high value bioplastics applications. As a result of the Genarex process, the resulting DDGS is of greater nutritional value while significant incomes can be generated from the sale of functional biobased plastics additives.
About Genarex FD LLC
Genarex FD LLC is a research and development company that offers sustainable solutions that provide substantial savings. The company’s vision is to seek cost-effective agricultural feedstocks that can be obtained and refined into biomaterials that offset costly materials currently produced from non-renewable sources. Additional information on Genarex is available at www.genarex.com.
Attis Industries Inc.
Attis Industries Inc. (NASDAQ: ATIS) is a diversified innovation and technology holding company defined by its commitment to servicing its clients with unwavering respect, fairness and care. We are focused on finding and implementing solutions for the resource needs and challenges of our customers with a fundamental objective to seek rewarding solutions through technology and innovation. Our healthcare business centers on creating community-based synergies through collaborations and software solutions. Our innovation business strives to create value from recovered resources. For more information, visit: www.attisind.com
Forward-Looking Statements
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