Solegear Bioplastic Technologies, a global-leading bioplastic technology company headquartered in Vancouver, Canada, announced yesterday that it has formally closed the previously announced strategic acquisition of the bioplastics division of Ex-Tech Plastics for consideration of $1.33 million in common shares of the Company at a deemed price of $0.20 per share. 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 last March.
“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.” 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.”
Solegear Bioplastic Technologies is active in the field of next generation bioplastics made from annually renewable plant-based sources. Every year, about 688 billion pounds of plastic is produced globally. Despite recent efforts, only about 12% of plastics are actively recycled.