The strategic acquisition, originally announced on April 27, 2022, is expected to expand the company's European Footprint
K.B. Recycling Industries has completed its acquisition of 100% of the shares of Plasticos Flome S.L. (Credit: Adam Radosavljevic from Pixabay)
K.B. Recycling Industries Ltd., conducting business as Alkemy, 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.
Source: Company Press Release