Magnetic North Acquisition Corp. Completes Acquisition of Intergild Advanced Recycling Technologies
October 28 2020 - 8:10PM
Magnetic North Acquisition Corp. (TSXV: MNC)
(“
Magnetic North” or the
“
Company”) is pleased to announce that it has
closed its acquisition of Intergild Advanced Recycling Technologies
Corp. (the “
Transaction”) as
previously announced on August 26, 2020.
Pursuant to the share purchase agreement dated
effective August 24, 2020, Magnetic North acquired all issued and
outstanding shares of Intergild in consideration for (a) the
issuance of an aggregate of 400,000 Series A Preferred Shares of
the Company at a price of $10.00 per share, (b) a cash payment in
the amount of $53,000, and (c) a promissory note in the amount of
$377,000, which is due and payable within 60 days of the closing
date. Intergild is now a wholly-owned subsidiary of Magnetic
North.
Graham Fritz, Founder and former CEO of
Intergild has joined the Magnetic North Board of Advisors to assist
with e-waste sourcing, further technological initiatives and
evaluating future deal flow under the direction of management. In
connection with the Transaction, the Company issued 300,000 stock
options of the Company to Mr. Fritz and 300,000 warrants of the
Company to the other shareholder of Intergild, with each option
and warrant entitling the holder to acquire one common share of
the Company at a price $0.70 per share for a term of five
years.
Magnetic North intends to merge Intergild into
the Company’s previously announced and closed investment in CXTL
Recycling Canada Corp. (“CXTL”) to augment CXTL’s
e-waste recycling solution. Intergild will add significant
expertise and a process that allows for the selective separation of
the plastic, fibre and metal components of e-waste, and the
crystallization of the metals, into marketable commodities. In
addition, the acquisition of Intergild will add potential
patentable intellectual property to CXTL, and as a result, Magnetic
North’s portfolio.
The integration into CXTL will create a complete
e-waste recycling solution, which provides full reclamation and
monetization for all parts of the e-waste stream in a low-emission
system that does not require smelting or a high-energy input.
Magnetic North, CXTL and Intergild have been working closely
together for the last ten months in order to advance Intergild’s
technology, with optimized demonstration machines operating
successfully for the last four months. Independent third-party due
diligence has been completed, and engineering reports have
certified the process.
E-waste is one of the fastest growing waste
problems on the planet. According to the United Nations Coalition
Report on E-waste, the growth and value of this waste stream
presents a significant global problem, which management believes
presents a significant opportunity for the Company. The report
references the value of the gold in e-waste that was discarded in
2019 at an estimated US$62.5 billion, which may ultimately be
doubled when e-waste’s other valuable metals and components are
considered.
About Magnetic North Acquisition Corp.
Magnetic North invests and manages businesses on
behalf of its shareholders and believes that capital alone does not
always lead to success. With offices in Calgary and Toronto, our
experienced management team applies its considerable management,
operations and capital markets expertise to ensure its investee
companies are as successful as possible for shareholders. Magnetic
North Common Shares trade on the TSX Venture Exchange under the
stock symbol MNC. For more information about Magnetic North, visit
its website at www.magneticnac.com. Magnetic North’s securities
filings can also be accessed at www.sedar.com.
For further information, please contact:
Graeme
DickInvestor Relations403-561-8989graeme@colwellcapital.com |
Stephen
McCormickVP, Capital
Markets403-619-6898stephen@magneticnac.com |
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Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
CAUTIONARY STATEMENT REGARDING FORWARD
LOOKING INFORMATION
This news release contains “forward-looking
information” within the meaning of Canadian securities legislation.
Forward-looking information generally refers to information about
an issuer’s business, capital, or operations that is prospective in
nature, and includes future-oriented financial information about
the issuer’s prospective financial performance or financial
position. The forward-looking statements include, but are not
limited to, statements with respect to the successful
integration of the Intergild business and technology and the growth
and value of the e-waste stream, which are also subject to certain
risks, including those set forth below.
The Company has made certain material
assumptions, including but not limited to assumptions with respect
to: prevailing market conditions; general business, economic,
competitive, political and social uncertainties; and the ability of
the Company to execute and achieve its business objectives to
develop the forward-looking information in this news release. There
can be no assurance that such statements will prove to be accurate,
as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements.
Actual results may vary from the forward-looking
information in this news release due to certain material risk
factors. These risk factors include but are not limited to: the
fact that Intergild has a limited history of operations;
limitations inherent in the due diligence process; adverse market
conditions; reliance on key and qualified personnel; emergence of
superior technologies; as well as regulatory and other risks
associated with the industries in which each of Intergild and the
Company's other portfolio companies operate. The Company cautions
that the foregoing list of material risk factors and assumptions is
not exhaustive.
The Company assumes no obligation to update or
revise the forward-looking information in this news release, unless
it is required to do so under Canadian securities legislation.
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