Solegear Bioplastic Technologies Inc. is pleased to announce that it entered into a definitive agreement on December 22, 2016 with LINDAR Corporation ("LINDAR") to acquire 100% of LINDAR's bioplastic division for CAD$845,000, comprising 4,225,000 common shares of the Company (the "Shares") at a deemed price of $0.20 per share (the "Asset Purchase").
Located in Minnesota, LINDAR has been producing thermoformed packaging since 1993 and is a recognized leader in packaging innovations, including single-serve and tamper evident food packaging.
"The food industry has been most significantly impacted by consumer and regulatory concerns about safety," said Paul Antoniadis, CEO of Solegear. "LINDAR was one of the early innovators to embrace the important role packaging design can play in ensuring food safety. By combining LINDAR's thermoformed packaging know-how with Solegear's commitment to engineering plant-based materials with no BPAs or phthalates, this acquisition positions Solegear with the people, infrastructure, products and pricing to further scale our business at a faster rate."
"The opportunity to create scale and engage more customers about what's now possible with plant-based packaging is something that is much easier to achieve with Solegear than on our own," said Tom Haglin, President of LINDAR. "As LINDAR's bioplastic division becomes part of the Solegear family, LINDAR will be able to capitalize on this business association by introducing new and expanded products with greater capabilities." Haglin added: "We are excited for the opportunity to become a Solegear shareholder, and what it will bring to our current customer base as well as new clients!"
Solegear & LINDAR have also agreed to negotiate and enter into an outsourced operating agreement (the "Outsourcing Agreement") under which LINDAR will provide certain management, operational, financing, marketing, sales, logistics, warehousing and other support services to the Company. The LINDAR team will continue to market and sell bioplastic packaging, making the transition seamless for LINDAR's existing bioplastic customers, which includes a wide range of US retailers and food producers.
The purchased assets generated over CAD$1.3 million in revenue in 2015. Revenues generated from the purchased assets are expected to be accretive to Solegear during the current fiscal year. Issuance of the Shares to LINDAR is conditional upon execution of the Outsourcing Agreement, and completion of the Asset Purchase remains subject to TSX Venture Exchange approval. The Shares will be issued from treasury and subject to a 24 -month hold period from the signing date of the Outsourcing Agreement.
About Solegear Bioplastic Technologies Inc.
Solegear Bioplastic Technologies Inc. (TSX VENTURE:SGB) is an innovator in the field of next generation bioplastics made from annually renewable plant-based sources. Committed to the principles of Green Chemistry, Solegear is driven by its mission to create healthier, safer and stronger communities by fundamentally changing the way plastics are made.
Solegear's proprietary bioplastic formulations are designed to meet today's social and corporate requirements to lower carbon emissions, reduce waste and remove toxicity typically associated with traditional petroleum-based plastics. Together with its partners, Solegear custom engineers, produces and distributes its high-performance bioplastics as resin, sheets and finished goods with some of the highest percentages of renewable, plant-based materials currently available in the industry.