Canadian renewable diesel technology specialist Cielo Waste Solutions Corp. has signed a commercial purchase agreement with XR Resources to purchase a property located in High River, Alberta, on which there is an existing biodiesel refinery.
This multi-feedstock processing plant was built in 2009 for an approximate capex cost of $10.2 million (€9.4m) and was capable of producing 16 million litres per year of biodiesel.
The aggregate purchase price is $2,300,000, consisting of both share and cash consideration. The initial installment of the purchase price, to be paid by Cielo to XR in consideration for the rights granted in the agreement, will be paid in the form of 5,000,000 common shares in the capital stock of Cielo at a price of $0.06 per share, which shares will be held in trust by legal counsel until the transaction is completed.
In a statement, Cielo said that the balance of the purchase price is comprised of a cash payment of $2,000,000, to be paid upon satisfaction of certain conditions, along with the release of the shares to XR.
The purchase of the property and the refinery is subject to certain conditions, including a financing condition, Cielo's ability to acquire required permits, and due diligence being completed by Cielo to its satisfaction on or before 7 February, 2017.
Once the conditions have been fulfilled or waived, and the purchase price paid, Cielo will acquire all right, title and interest in and to the property and the refinery. The anticipated closing date is 28 February, 2017.
