Strategic Acquisition Expands European
Footprint
VALENCIA, Spain and BEIT SHEAN,
Israel, June 13,
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, is pleased to announced that it has
completed its acquisition (the "Acquisition") of 100% of the
shares of Plasticos Flome S.L. ("Flome"), a plastics
manufacturing company based in Valencia,
Spain. The Acquisition was originally announced on
April 27, 2022.
Following closing, Maximo Olivas
has been appointed Chief Executive Officer of Flome. Maximo Olivas has 16 years of experience
primarily in the plastic processing industry.
"We are pleased to have been able to complete the
Acquisition in a timely manner and to vigorously pursue further
testing of the use of Alkemy products at Flome. It is of great
value to Flome and Alkemy to have Maximo
Olivas as Chief Executive Officer of Flome. Maximo Olivas has many years of experience as a
manager in SMEs in the plastics industry, and his network in
Spain and other European countries
is particularly valuable," says 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. By using Alkemy sheets Flome will
offer products made from recycled plastic and thus increase the
attractiveness for its customers who increasingly want to reduce
their carbon footprint ".
In consideration for the purchase of the issued and outstanding
shares of Flome, Alkemy paid the shareholders of Flome (the
"Sellers") a total amount of €1,800,000 (CAD $2,436,012) (the "Purchase Price"). Alkemy
exercised its option to satisfy up to 10% of the Purchase Price
(€180,000.00) by issuing ordinary shares in the capital of Alkemy
("Ordinary Shares") to the Sellers. Accordingly, Alkemy has
issued 1,514,973 Ordinary Shares at a price per share of CAD
$0.16 to the Sellers. The price per
share was determined between the Sellers and Alkemy based upon the
closing market price of the Ordinary Shares on the TSX Venture
Exchange one calendar day prior to the Closing Date.
About Plasticos 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.
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
announced acquisition of Plasticos Flome S.L. and corresponding
expectations of future results, performance, achievements,
prospects or opportunities or the markets in which the Company
operates as a result of such transaction 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 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.
