Solegear Bioplastic Technologies Inc. (Vancouver, Canada) has entered into a definitive agreement with Ex-Tech Plastics, Inc. (Richmond, IL,USA), a manufacturer of extruded plastic sheets, to acquire 100% of Ex-Tech’s
bioplastics division for $1.33 million in common shares of the Company at a deemed price of $0.20 per share . The Asset Purchase is expected to provide Solegear with annualized revenues estimated at US$2 million.
In addition, Solagear will be Ex-Tech’s exclusive supplier of bio-based materials and additives and Ex-Tech will be Solagear’s exclusive plastics extrusion service provider in North America.
“We’re delighted to have the opportunity to welcome Ex-Tech’s bioplastic division to the Solegear family,” said Paul Antoniadis, CEO of Solegear. “Further to the strategic partnership formed with Ex-Tech in 2015, we believe the amalgamation of Solegear and Ex-Tech’s bioplastic expertise, people and commercial efforts under the Solegear brand will further accelerate the commercialization of thermoformed bioplastic packaging in food and non-food applications.” Mr. Antoniadis further stated, “This transaction marks a significant milestone in Solegear’s strategy to grow its business through targeted acquisitions, joint ventures and organic sales.”
“In completing a strategic review it became clear there was greater value to be achieved by combining our bioplastic business with Solegear,” said William Riesbeck, President of Ex-Tech Plastics. “I believe this transaction will put more resources behind our bioplastics business to unlock more revenue potential by combining our knowledge and expertise”.