Vancouver, BC – Solegear Bioplastic Technologies Inc. (TSX-V:SGB) (“Solegear” or the “Company”) announced today that it has formally closed the previously announced strategic acquisition of the bioplastics division of Ex-Tech Plastics, Inc. (“Ex-Tech”) for consideration of $1.33 million in common shares of the Company at a deemed price of $0.20 per share (the “Acquisition”). Ex-Tech, based in the Chicago, Illinois, area has been a leading manufacturer of extruded plastic sheets for over thirty years.
The Acquisition is expected to provide Solegear with annualized revenues of an estimated US$2 million, which the Company expects to use as a base for further growth and development. As consideration, Solegear has issued 6,650,000 common shares to Ex-Tech in respect of the transaction, all of which are subject to a 24-month hold period. The terms of the acquisition were first announced in a Solegear news release distributed on March 17, 2016.
“We are very pleased to complete on this highly synergistic and accretive acquisition,” said Paul Antoniadis, CEO of Solegear. “We believe the addition of Ex-Tech’s bioplastics division will further accelerate the commercialization of thermoformed bioplastic packaging in both food and non-food applications.” Mr. Antoniadis further stated, “Increased U.S. visibility, an expanded customer base and solid revenues add greater leverage to our growth strategy to become the leader in innovative bioplastic products and packaging.”
About Solegear Bioplastic Technologies Inc.
Solegear Bioplastic Technologies Inc. (TSX-V:SGB) is an innovator in the field of next generation bioplastics made from annually renewable plant-based sources. Committed to the principles of Green Chemistry, Solegear is driven by its mission to create healthier, safer and stronger communities by fundamentally changing the way plastics are made.
Solegear’s proprietary bioplastic formulations, Polysole® and Traverse®, are designed to meet today’s social and corporate requirements to lower carbon emissions, reduce waste and remove toxicity typically associated with traditional petroleum-based plastics. Together with its partners, Solegear custom engineers, produces and distributes its high-performance bioplastics as resin, sheets and finished goods with some of the highest percentages of renewable, plant-based materials currently available in the industry. For more information: www.solegear.ca.
On behalf of the Company:
“Paul Antoniadis” Chief Executive Officer and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Implicit in this information, particularly in respect of the estimated revenues to be derived from the Asset Purchase, are assumptions regarding expected performance of the purchased assets in the future. Specifically, we have assumed that the revenues that Solegear will be able to earn from the assets purchased from Ex-Tech will be equal to or greater than Ex-Tech’s historical revenues from its bioplastics division. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of the Company are subject to a number of risks and uncertainties, including the risk that current customers of Ex-Tech’s bioplastics division may cease to be customers of Solegear, and that such customers may materially decrease their requirements for bioplastics materials. As such, Solegear’s actual revenues relating to the transaction described in this news release could differ materially from what is currently expected as set out above. The estimate of revenues provided above may constitute a “financial outlook” under applicable securities laws. The purpose of the financial outlook is to provide readers with an estimate of the volume of business that Solegear currently expects the Asset Purchase to generate over the 12 months following the closing of the transaction disclosed in this press release. Solegear’s management cautions readers that this information may not be appropriate for other purposes.
When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to above will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Other than as required under securities laws, we do not undertake to update this information at any particular time.
Forward-looking information contained in this news release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date should not rely upon this information as of any other date. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.