LAS VEGAS, NV--(Marketwired - Jun 17, 2016) - Methes Energies International Ltd. (OTC PINK: MEIL), announced today that it has closed on the sale of its biodiesel facility, including the two Denami 3000™, located in Sombra, Ontario, for $4.5M USD to BIOX Corporation ("BIOX"). Over the next few months Methes, acting as consultant, will assist BIOX in restarting the facility. The sale provides Methes with the working capital required to move forward with its other lines of business.
Due to, among other things, market conditions, the Sombra facility had been idle for the last 18 months. For the Company, this transaction greatly reduces monthly expenses, allows the mortgage on the Sombra facility to be paid in full (approx. $1M USD) and leaves the Company in a comfortable cash position with minimal fixed monthly expenses.
Moving forward the Company will focus on the sale of its Denami™ processors and its technology portfolio including its innovative PP-MEC™ pre-treatment system as well as the production of natural polyols. The Company is currently working with several potential clients that have shown strong interest in its biodiesel processors and the PP-MEC™ pre-treatment system.
The Company would also like to provide an update about the project in Havelock, Ontario with Drain Bros. Commissioning of the Denami 600™ and the PP-MEC™ pre-treatment system should start in a few weeks and as soon as Drain Bros completes their final phase of upgrades to their facility. One final payment is due from Drain Bros in the amount of $25,000 Canadian Dollars (CDN$) and payable 12 months after commissioning of their facility.
Michel G. Laporte, CEO of Methes said, "I want to thank and congratulate Alan and his team at BIOX. We have a great relationship and I'm confident that they will do well in Sombra. Moving forward, we'll be focusing more on our technology portfolio and the production of natural polyols. We have been quiet over the last several months but busy and that will soon show with some exciting project announcements."
Source: Methes Energies International Ltd.
Date: Jun 17, 2016