Source: ReGen III Corp.
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  • ReGen III Corp. (GIII) has signed an amended letter of intent for a Texas-based used lubricating oils recycling facility and a partnership framework for financing future projects
  • ReGen is a clean-tech recycling company focused on creating sustainable solutions
  • Financing has doubled to a maximum commitment of US$150 million
  • The involved firm will receive a 14.40 per cent preferred return plus 50 per cent ownership in the project
  • ReGen will finalize the four definitive agreements with the firm in the next 30 days
  • ReGen III Corp. (GIII) is up 29.03 per cent trading at $1.20 per share as of 12:24 p.m. ET

ReGen III Corp. (GIII) and a U.S green energy infrastructure private equity firm have signed an amended letter of intent.

The LOI is for a Texas-based used lubricating oils recycling facility and a partnership framework for financing future projects.

ReGen is a clean-tech recycling company focused on creating sustainable solutions.

“The amended LOI terms were negotiated against a backdrop of challenging capital markets, increased capital costs due to inflationary pressures and site-specific scope changes identified during FEL2 and the value engineering process… the projected economics for the Texas facility remain incredibly robust without relying on any government subsidies,” Greg Clarkes, Chairman and CEO of ReGen, said. 

According to the company, the firm will give somewhere between US$75 million to a US$150 million of equity to ReGen’s Texas recycling project. This is twice as much as initially announced.

In return, the firm will receive a 14.40 per cent preferred return on funds invested plus 50 per cent ownership in the project.

ReGen stated it and the firm are dedicated to finalizing the four, previously announced definitive agreements within the next 30 days.

The firm will also have an exclusive right-of-first offer to provide up to 100 per cent of the equity required for the construction financing of each future project developed by ReGen until December 31st, 2023.

Alongside this amendment, the company shared that the firm would continue to have the right to acquire up to a 5.00 per cent stake of the common stock of ReGen III on a fully diluted basis through a private placement.

ReGen III Corp. (GIII) is up 29.03 per cent trading at $1.20 per share as of 12:24 p.m. ET.


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