SusGlobal Energy Purchases Assets of Astoria Organic Matters located in Belleville, Ontario, Canada
Toronto, Ontario (Newsfile Corp. - September 19, 2017) - SusGlobal Energy Corp. ('SusGlobal Energy') or the ('Company') is pleased to announce that its wholly owned subsidiary SusGlobal Energy Belleville Ltd. ('SusGlobal'), has purchased certain assets (the 'Assets') of Astoria Organic Matters Ltd. and Astoria Organic Matters Canada LP (collectively 'Astoria'), located in Belleville, Ontario, Canada, from BDO Canada Limited, in its capacity as Court appointed Receiver of Astoria (the 'Vendor').
The terms of the asset purchase are reflected in an Asset Purchase Agreement (the 'Agreement or APA'). The purchase price of the assets consisted of USD$$3,364,241 (CAD$4,100,000) in cash and 529,970 restricted common shares ('Shares') of the Company issued in the name of the Vendor on September 11, 2017, priced at USD$5.00 per share for value of USD$2,649,850 (CAD$3,500,000) and the amount of certain assumed liabilities.
SusGlobal will be expanding the existing 70,000 tonnes per annum composting Belleville site with an additional 50,000 tonnes per annum organic processing and transfer site approved under the existing Environmental Compliance Approval ('ECA') and Site Plan. The expansion and integration of the processing equipment into the existing facilities will allow for treating of source separated ('SSO') and industrial, commercial and institutional ('ICI') organic wastes to produce a high yield organic slurry which will be sent to local anaerobic digesters to produce energy.
The project will also reduce greenhouse gas emissions ('GHG') from the production of renewable electricity and heat as well as reducing methane emissions by diverting organics from landfilling, allowing the Company to monetize the emission reductions under Ontario's Cap and Trade program. Landfills in the area do not collect the methane-containing gas produced by landfilling operations; only vent it to prevent fires and explosions at the landfills. The Company also expects to produce a Class AA Organic Fertilizer that can be added to composting facilities or incorporated directly into fertilizer compounds from digestates.
'We are very pleased to be able to acquire this project to bring the Ontario, Quebec and New York State organic waste management systems to a sustainable level by diverting from landfills and aerobic composting facilities which are not sustainable from environmental and energy aspects' stated Gerald Hamaliuk, Chief Executive Officer of SusGlobal Energy Corp.
The Company advanced the final cash purchase balance payment received by the Vendor on Thursday, September 14, 2017. The Company also provided an Irrevocable Letter of Credit to the Ministry of the Environment and Climate Change ('MOECC') and replaced an existing Bid Bond to the City of Peterborough, Ontario. The details of the Asset Purchase Agreement and Loan are found in the Current Report on Form 8-K that the Company filed with the Securities and Exchange Commission on September 19, 2017.
About SusGlobal Energy Belleville
The project located at 704 Phillipston Road, Belleville, Ontario Canada processes waste organics, including biosolids from wastewater and industrial processing, SSO from households and ICI organic wastes and will produce a hydrolyzed slurry for local farm digesters and an environmentally safe fertilizer that can be used in farming as a safe alternative to chemical fertilizers. The existing Environmental Compliance Approval and Site Plan allows for organic waste processing from the provinces of Ontario and Quebec in Canada and from New York State in the United States.
About SusGlobal Energy Corp.
SusGlobal Energy Corp. is a renewable energy company focused on acquiring, developing and monetizing a portfolio of proprietary technologies in the waste to energy application globally. It is management's objective to grow SusGlobal Energy into a significant sustainable waste to energy provider. For more information, please visit the Company's website at: www.susglobalenergy.com
SusGlobal Energy Corp. Gerald Hamaliuk, Chief Executive Officer(416) 223-8500 or Toll Free: 1-866-512- SESG (7374) Email: email@example.com
SOURCE: SusGlobal Energy Corp.
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19.09.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: SusGlobal Energy Corp.
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