SCOTTSDALE, AZ and CALGARY, AB, July 15,
2014 /PRNewswire/ - RDX Technologies Corporation ("RDX"
or the "Company") (TSXV: RDX, OTCQX: RGDEF, FSE: RL7), a water
treatment and energy technology company, today announces the
purchase of substantially all of the assets of the Renewable Energy
Products ("REP") refinery located in Santa Fe Springs, California for cash and RDX
common shares from Paladin Capital Group. The REP facility has a
nameplate capacity of 10MM gallons per year.
REP was the owner of a refinery facility and other related
assets located in California. The
purchase price for these certain assets from REP was $2.85 million and included: (i) US$100,000 in cash; (ii) 4,150,000 common shares
of the Company valued only for purposes of the TSX Venture Exchange
at CND$0.70 cents per share; and (iii) 3,282,432 common shares of
the Company at CND$0.37 cents per share, as adjusted for any stock
splits, reverse stock splits, stock dividends and similar
recapitalization events, as deferred purchase price to be issued no
later than the earlier of (a) ten days after the Company is listed
and trading on the NYSE-MKT exchange or (b) October 31, 2014.
As security for the deferred purchase price of the 3,282,432
common shares of the Company, the Company executed a Security
Agreement providing REP a security interest in the facility and
other related assets acquired and executed a Promissory Note for
the 3,282,432 common shares of the Company. The Promissory Note has
a five (5%) annual interest rate and will be paid in common shares
of the Company when the Promissory Note is paid in full through the
issuance of shares in the future.
The common shares issued at closing were non-dilutive due to the
fact that the common shares issued at the close of the purchase
were offset by previously cancelled shares, and did not increase
the total outstanding shares of the Company.
RDX is in the process of moving the refinery operation to
a confidential location that offeres a business friendly,
proactive environment that favors renewable fuel production, and is
in proximity of an RDX fuel consumer. The new refinery location
will remain confidential until moved and in operation, which is
expected to be late fall of this calendar year.
Dennis M. Danzik, RDX CEO
stated, "This asset acquisition expands our refinery capacity
by 10MM gallons annually and will open fuel sale opportunities for
RDX in the Western United States.
RDX produces quality renewable diesel replacements through
methyl-ester refinement that continue to grow in popularity.
Through this transaction we also gain new substantial shareholders
in the Paladin Capital Group and their related entities."
Ken Pentimonti, a Principal at
Paladin Capital Group stated, "We feel that RDX was the right
choice to purchase these refinery assets. RDX is starting to
build a solid track record in non-subsidized renewable diesel
replacements. We look forward to RDX taking advantage of
opportunities in this market and our firm is pleased to join the
ranks of RDX shareholders."
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis M. Danzik"
Dennis M. Danzik, CEO
danzikdirect@rdxh2o.com
"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 news release. This news release may contain
forward-looking statements. Forward-looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements. Such information is
subject to known and unknown risks, uncertainties and other factors
that could influence actual results or events and cause actual
results or events to differ materially from those stated,
anticipated or implied in the forward-looking information. Readers
are cautioned not to place undue reliance on forward-looking
information, as no assurances can be given as to future results,
levels of activity or achievements."
SOURCE RDX Technologies Corporation