The acquisition is an important step in
Alkemy's growth strategy to sell its products in the European
market and to expand its activity through vertical
integration.
TORONTO and BEIT SHEAN, Israel, April 27,
2022 /CNW/ - K.B. Recycling Industries Ltd.,
conducting business as Alkemy ("Alkemy" or the
"Company") (TSXV: AKMY) (TSXV: AKMY.WT),
an innovative plastics recycling company, signed today -
April 27, 2022 - a share purchase
agreement to acquire (the "Acquisition") 100% of the shares
of Plasticos Flome S.L. ("Flome").
Flome (https://www.flome.es) is a plastics manufacturing company
operating in Valencia, Spain.
Flome's production site has seven operating lines of vacuum-forming
manufacturing. Flome uses plastic sheets and boards as raw
materials for manufacturing trays and packaging for automotive,
agriculture, and beverage industries.
The Acquisition is an arm's length transaction that is expected
to enable Alkemy to extend its activities and the sale of its
portfolio of products into the European market. The Acquisition
will also expand Alkemy's production through vertical integration.
Flome will use Alkemy's products as input materials while meeting
the sustainability requirements of its customers. Using Alkemy's
foils and boards made of recycled plastic bags produced by Alkemy's
unique one-step process, Flome will be able to produce a large part
of its preliminary products in an environmentally friendly way.
"The Acquisition is another step in our move towards global
activity by expanding our value chain and bringing our innovative
plastic recycling technology from Israel to Europe," said Mr. Ami Krupik, Founder,
Innovation and Technology and Interim Chief Executive Officer of
Alkemy.
"We want to bring our technology and products to the European
market, and Flome is the ideal partner. We expect this step will
increase our growth and propel a fruitful collaboration on further
product development. Flome's research and development team
has already forged a close working relationship with Alkemy, and
Flome's production facilities are ideally suited for short-cycles
of product development and research and development
prototyping", Mr. Krupik added.
"The acquisition of Flome fits perfectly with Alkemy,"
adds Yoav Horowitz, Chairman of the
Board of Alkemy. "Flome will use Alkemy's recycled plastic
sheets for its current products while developing additional
value-added products that can utilize Alkemy's recycled plastic
sheets."
In consideration for the purchase of the issued and outstanding
shares of Flome, Alkemy will pay the shareholders of Flome (the
"Sellers"), a total amount of €1,800,000 (CAD 2,436,012) (the "Purchase Price"). As
a condition to the closing of the Acquisition, Flome will receive a
payment of €247,000 (CAD 334,275) in
respect of shareholder debt which shall either be paid directly to
Flome by the Sellers or will be remitted directly to Flome by
Alkemy at the closing of the Acquisition and, in such case,
such amount shall be subtracted from the Purchase Price received by
the Sellers. Alkemy shall have the option to pay 10% of the
Purchase Price by issuing ordinary shares in the capital of Alkemy
to the Sellers. The consummation of the Acquisition is subject to
the approval of the TSX Venture Exchange and the fulfilment of
customary closing conditions. No finder fee is payable as part of
the Acquisition.
About K.B. Recycling Industries
Ltd.
K.B. Recycling Industries Ltd. is an environmental technology
company based in Israel, and
carries on business under the name "Alkemy". Alkemy has developed a
unique plastic recycling process to recycle plastic bags and sheets
traditionally not considered economically viable for recycling and
as such have become one of the largest plastic pollutants in the
world. Alkemy employs a dynamic one-step process that does not
require separate recycling and production plants. Alkemy's process
includes both recycling and finished product manufacturing in a
single process called "waste-to-product", allowing Alkemy to reduce
the cost of the recycled plastic as raw materials, and increase the
profit margin per metric ton.
Forward-Looking
Information
This press release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
information") within the meaning of applicable securities laws.
Forward-looking information may relate to the Company's future
financial outlook and anticipated events or results and may include
information regarding the Company's financial position, business
strategy, growth strategies, addressable markets, budgets,
operations, financial results, taxes, dividend policy, plans and
objectives. Particularly, information regarding the Company's
expectations of future results, performance, achievements,
prospects or opportunities or the markets in which the Company
operates is forward-looking information. In some cases,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "targets", "expects",
"budgets", "scheduled", "estimates", "outlook", "forecasts",
"projects", "prospects", "strategy", "intends", "anticipates",
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might", or "will" occur. In addition, any statements that refer to
expectations, intentions, projections or other characterizations of
future events or circumstances contain forward-looking information.
Statements containing forward-looking information are not
historical facts but instead represent management's expectations,
estimates and projections regarding future events or
circumstances.
Forward-looking information is necessarily based on a number of
opinions, estimates and assumptions that, while considered by the
Company to be appropriate and reasonable as of the date of this
press release, are subject to known and unknown risks,
uncertainties, assumptions and other factors that may cause the
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking information, including but not limited to, risks
and uncertainties associated with market conditions and the
satisfaction of all applicable regulatory requirements, as well as
risks and uncertainties associated with the Company's business and
finances in general.
If any of these risks or uncertainties materialize, or if the
opinions, estimates or assumptions underlying forward-looking
information prove incorrect, actual results or future events might
vary materially from those anticipated in forward-looking
information. The opinions, estimates or assumptions referred to
above and the risk factors described in the "Risk Factors" section
of the MD&A of the Company dated April
13, 2022 should be considered carefully.
Although the Company has attempted to identify important risk
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
risk factors not presently known to the Company or that the Company
presently believes is not material that could also cause actual
results or future events to differ materially from those expressed
in such forward-looking information. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information, which speaks only as of
the date made. Forward-looking information contained in this press
release represents the Company's expectations as of the date of
this press release (or as of the date they are otherwise stated to
be made), and are subject to change after such date. In particular,
there is no assurance that the Acquisition will be completed on the
terms set forth herein or at all. In addition, there is no
assurance that the Company will realize the anticipated benefits
from the Acquisition. The Company disclaims any intention or
obligation or undertaking to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required under applicable securities
laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the Corporate Finance Policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE K.B. Recycling Industries Ltd.