Attis Industries Enters into a Definitive Agreement to Acquire Corn Ethanol Facility and Grain Malting Operation from Sunoco ...
January 22 2019 - 8:30AM
via NEWMEDIAWIRE -- Attis Industries Inc. (NASDAQ: ATIS) (the
"Company" or "Attis"), a diversified innovation and technology
holding company today announced that it has entered into a
definitive asset purchase agreement with Sunoco LP (NYSE: SUN)
(“Sunoco”) to acquire and operate its corn ethanol plant and grain
malting operation in Fulton, NY. The plant will become the
essential element of Attis’ expanding technology portfolio as it
develops the site into the most comprehensive Green Tech campus for
renewable fuels in the country.
Total consideration for the divestiture is $20
million in cash. The transaction is subject to regulatory
clearances and customary closing conditions and is expected to
close in the first quarter of 2019. Attis expects to
finance the transaction with non-dilutive financing.
Attis’ management team has a long-standing
relationship with Sunoco and the operational team in place at the
Fulton, NY ethanol facility. For Attis, the key to the
success of this transaction is the 10-year offtake agreement for
the ethanol produced which creates valuable stability for Attis as
it plans its capital improvement strategy for the facility. The
improvements made at the facility over the next 24 months will
create the first of its kind, major renewable energy
campus.
“The acquisition of Sunoco’s Fulton, NY
ethanol plant is a significant step in Attis establishing a
foothold in the renewable fuel space, while accessing the fourth
largest gasoline market in the United States,” said Jeff Cosman,
Chief Executive Officer of Attis Industries. “Attis’ familiarity
with the facility as well as the progressive business environment
in the state of New York provide us with a unique opportunity to
transform an asset with incredible potential into an innovative
campus for bio-based fuel that is consistent with our short and
long-term growth strategy.”
“We believe the demand for low carbon energy
sources will continue to increase in the coming years and Attis is
well positioned to be able to grow with that trend,” said Cosman.
“The Fulton ethanol facility generates significant revenue for our
growing company, it greatly changes the perspective of our
investors in Attis and enables Attis to roll-out additional
technology platforms under the Innovations division to expand our
revenue and cashflow projections over the next two years. Having an
established asset like the Fulton, NY ethanol plant on the books
allows us greater access to financing opportunities, as well as
provides us with a shovel ready site to begin the development and
commercialization of some of our previously announced
technologies.”
Included within the acquisition is the 1886 Malt
House which is a direct beneficiary of incentives designed to
promote the local farm to brewery industry. In 2013, New
York created a farm brewery law to provide licenses only to those
farmers whose beer is made primarily from locally grown farm
products. Under this program, the Malt House will
receive some tax-exempt status and contribute to the $4 billion per
year craft brewery business in the state of New York.
“The state of New York has continually
demonstrated that it is a leader in green business initiatives,”
concluded Cosman. “Its continued focus on driving
economic incentives for green projects while relentlessly focusing
on reducing greenhouse gas emissions make New York state an ideal
location for Attis. We are excited for the opportunity
to work with such an established partner in Sunoco and within a
green friendly environment like the state of New York.”
Attis Industries Inc.
Attis Industries Inc. (NASDAQ: ATIS) is a holding
company focused on developing and building businesses that play
important roles in the new economy, which include renewable fuels,
bio-based plastics, healthcare and communications infrastructure.
We strive to encourage our employees to be entrepreneurs focused on
innovation and technology. We will remain dynamic, persistent and
motivated to our mission of winning. The growth of our company will
rely on our integrity and our vision for the future. Attis
Industries will continue to fulfill essential needs in healthcare,
energy independence and digital communications. Today, each of
these sectors provide high growth opportunities that collectively
account for more than a third of our nations GDP. For more
information, visit: www.attisind.com.
Forward-Looking Statements
Any statements contained in this press release
that do not describe historical facts may constitute
forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. You can identify
forward-looking statements by words such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“should,” “would” or similar words. You should consider these
statements carefully because they discuss our plans, targets,
strategies, prospects and expectations concerning our business,
operating results, financial condition and other similar matters.
These statements are subject to certain risks, uncertainties, and
assumptions, including, but not limited to, risks and uncertainties
relating to the Company's ability to develop, market and sell
products based on its technology; the expected benefits and
efficacy of the Company's products and technology; the availability
of substantial additional funding for the Company to continue its
operations and to conduct research and development, clinical
studies and future product commercialization; and, the Company's
business, research, product development, regulatory approval,
marketing and distribution plans and strategies; the ability of the
Company to continue to meet the listing requirements of NASDAQ; the
ability of the Company to execute on a business plan that permits
the technologies and innovations businesses to provide sufficient
growth, revenue, liquidity and cash flows for sustaining the
Company’s go-forward business and meeting any of its obligations
under its indebtedness for borrowed money, and the risks identified
and discussed under the caption “Risk Factors” in the Attis Annual
Report on Form 10-K for the fiscal year ended December 31, 2017,
filed with the Securities and Exchange Commission (the “SEC”) on
April 16, 2018 and the other documents Attis files with the SEC
from time to time. There will be events in the future, however,
that Attis is not able to predict accurately or control. Attis’s
actual results may differ materially from the expectations that
Attis describes in its forward-looking statements. Factors or
events that could cause Attis’s actual results to materially differ
may emerge from time to time, and it is not possible for Attis to
accurately predict all of them. Any forward-looking statement made
by Attis in this press release speaks only as of the date on which
Attis makes it. Attis undertakes no obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
Contact:
Stephen Hart
Hayden IR
(917) 658-7878
hart@haydenir.com
Kevin M. McGrath
TraDigital IR
212 389 9782 x104
kevin@traditigalir.com
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