New York State Will Become Showcase for Attis Innovations Green Tech Campus
MILTON, GA, Jan. 22, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Attis Industries Inc. (NASDAQ: ATIS) (the "Company" or "Attis"), a diversified innovation and technology holding company today announced that it has entered into a definitive asset purchase agreement with Sunoco LP (NYSE: SUN) (“Sunoco”) to acquire and operate its corn ethanol plant and grain malting operation in Fulton, NY. The plant will become the essential element of Attis’ expanding technology portfolio as it develops the site into the most comprehensive Green Tech campus for renewable fuels in the country.
Total consideration for the divestiture is $20 million in cash. The transaction is subject to regulatory clearances and customary closing conditions and is expected to close in the first quarter of 2019. Attis expects to finance the transaction with non-dilutive financing.
Attis’ management team has a long-standing relationship with Sunoco and the operational team in place at the Fulton, NY ethanol facility. For Attis, the key to the success of this transaction is the 10-year offtake agreement for the ethanol produced which creates valuable stability for Attis as it plans its capital improvement strategy for the facility. The improvements made at the facility over the next 24 months will create the first of its kind, major renewable energy campus.
“The acquisition of Sunoco’s Fulton, NY ethanol plant is a significant step in Attis establishing a foothold in the renewable fuel space, while accessing the fourth largest gasoline market in the United States,” said Jeff Cosman, Chief Executive Officer of Attis Industries. “Attis’ familiarity with the facility as well as the progressive business environment in the state of New York provide us with a unique opportunity to transform an asset with incredible potential into an innovative campus for bio-based fuel that is consistent with our short and long-term growth strategy.”
“We believe the demand for low carbon energy sources will continue to increase in the coming years and Attis is well positioned to be able to grow with that trend,” said Cosman. “The Fulton ethanol facility generates significant revenue for our growing company, it greatly changes the perspective of our investors in Attis and enables Attis to roll-out additional technology platforms under the Innovations division to expand our revenue and cashflow projections over the next two years. Having an established asset like the Fulton, NY ethanol plant on the books allows us greater access to financing opportunities, as well as provides us with a shovel ready site to begin the development and commercialization of some of our previously announced technologies.”
Included within the acquisition is the 1886 Malt House which is a direct beneficiary of incentives designed to promote the local farm to brewery industry. In 2013, New York created a farm brewery law to provide licenses only to those farmers whose beer is made primarily from locally grown farm products. Under this program, the Malt House will receive some tax-exempt status and contribute to the $4 billion per year craft brewery business in the state of New York.
“The state of New York has continually demonstrated that it is a leader in green business initiatives,” concluded Cosman. “Its continued focus on driving economic incentives for green projects while relentlessly focusing on reducing greenhouse gas emissions make New York state an ideal location for Attis. We are excited for the opportunity to work with such an established partner in Sunoco and within a green friendly environment like the state of New York.”
Attis Industries Inc.
Attis Industries Inc. (NASDAQ: ATIS) is a holding company focused on developing and building businesses that play important roles in the new economy, which include renewable fuels, bio-based plastics, healthcare and communications infrastructure. We strive to encourage our employees to be entrepreneurs focused on innovation and technology. We will remain dynamic, persistent and motivated to our mission of winning. The growth of our company will rely on our integrity and our vision for the future. Attis Industries will continue to fulfill essential needs in healthcare, energy independence and digital communications. Today, each of these sectors provide high growth opportunities that collectively account for more than a third of our nations GDP. For more information, visit: www.attisind.com.
Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “should,” “would” or similar words. You should consider these statements carefully because they discuss our plans, targets, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. These statements are subject to certain risks, uncertainties, and assumptions, including, but not limited to, risks and uncertainties relating to the Company's ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company's products and technology; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and, the Company's business, research, product development, regulatory approval, marketing and distribution plans and strategies; the ability of the Company to continue to meet the listing requirements of NASDAQ; the ability of the Company to execute on a business plan that permits the technologies and innovations businesses to provide sufficient growth, revenue, liquidity and cash flows for sustaining the Company’s go-forward business and meeting any of its obligations under its indebtedness for borrowed money, and the risks identified and discussed under the caption “Risk Factors” in the Attis Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (the “SEC”) on April 16, 2018 and the other documents Attis files with the SEC from time to time. There will be events in the future, however, that Attis is not able to predict accurately or control. Attis’s actual results may differ materially from the expectations that Attis describes in its forward-looking statements. Factors or events that could cause Attis’s actual results to materially differ may emerge from time to time, and it is not possible for Attis to accurately predict all of them. Any forward-looking statement made by Attis in this press release speaks only as of the date on which Attis makes it. Attis undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.