CHAR Technologies Announces LOI For Acquisition of The Altech Group and Private Placement to Support Advanced Biomass Fuel

CHAR Technologies (TSXV:YES) has announced it has signed a non-binding letter of intent to acquire Altech Group.
As quoted in the press release:

Founded in 1986, Altech has 12 employees and a diverse and stable client base. Under the terms of the LOI, CHAR would acquire all issued equity in Altech. Altech shareholders would receive $950,000 in common shares of CHAR, with the number of common shares anticipated to be determined using the 30-day volume weighted average price of the CHAR common shares prior to November 17^th, 2017, as well as $150,000 in cash. In connection with closing, CHAR will institute an employee retention plan where current non-shareholder Altech employees will be issued an aggregate of $100,000 of common shares (the “Equity Grant“) at a price determined in accordance with the policies of the TSXV over a period of 13 months with any unvested grants to terminate should the relevant employee cease to be employed by Altech. Closing is anticipated to take place on or before December 31, 2017.
Bill White, Chairman of CHAR stated that, “The acquisition of the Altech Group would add over 30 years of experience in environmental technologies and professional engineering consulting” and that “Altech would provide CHAR with a growth catalyst to move much of our engineering design in-house, while at the same time would allow us to greatly expand our technology solutions offering for industrial clean air and clean water.”
CHAR brings the shareholders of Altech a succession plan and an opportunity to realize value at an optimal time. According to Alexander Keen, Founder and CEO of Altech, “CHAR would bring an exciting new technology and a corporate development team. Our joint efforts going forward would bring tremendous opportunities”.
It is anticipated that the new joint enterprise will have a tremendous advantage in commercialization of a new cleantech solid fuel branded “CleanFyre”. This new product is a GHG neutral coal replacement, generically referred to as biocoal. CleanFyre will allow large industrial customers the ability to greatly reduce their GHG emissions without significant capital expenditures. According to Andrew White, CEO of CHAR, “CleanFyre would leverage both Altech’s experience and expertise, and CHAR’s platform pyrolysis technology, the same technology used to create SulfaCHAR, to create a solution with strong market pull and significant growth opportunity.”
The completion of CHAR’s acquisition of Altech is subject to the satisfaction of various conditions, including the negotiation of a definitive agreement and the completion of the parties respective due diligence. Although CHAR anticipates that the transaction with Altech will be consummated, the LOI is non-binding and there is no certainty that the transaction will be consummated.

Click here to read the full press release.