The acquisition will include an $800,000 C€558,800) cash payment and a 12.5 percent equity interest in Verta Energy shares, together with further warrants.
In a statement, Four Rivers said the 6,000 metric tonnes of waste liquid biomass ML Oils buys each year is enough alone to produce 4 MW of electricity at Verta’s waste-to-energy plant.
“The acquisition of ML Oils is of fundamental importance to our strategy of owning and integrating the complete vertical business cycle from feedstock procurement through to sale of renewable electricity,” said Four Rivers Bio-energy CEO Stephen Padgett. “It’s a tremendous step for our company and our shareholders.”
As part of the deal, ML’s long-time owner Martin Corbett will join Verta Energy’s management team and play a role in the growth of its waste liquid biomass procurement and processing subsidiary.
The Verta Group, which is wholly owned by Four Rivers, will own and operate the waste-to-energy plant that Four Rivers has been developing out of the 41-acre industrial site in the UK that it acquired in 2009.
The plant, which is expected to become operational later this year, includes a waste liquid processing plant, an energy centre and onsite electricity substations.
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