Background and rationale
The deal is part of Cortus expansion plan and gives Cortus a good platform for continued growth and increased exposure to the capital market.
"The transaction with Clean Tech East and the subsequent capital raising is important for us to implement our first presence in an industrial scale project, which - if everything works as it should - will lead to a very profitable development of the new Cortus Energy" comments Rolf Ljunggren, CEO of Cortus.
"After a year spent on preparing Clean Tech East for the next step in the company's development as well as to evaluate several new business ideas, we are now delighted to offer our shareholders a unique opportunity to take part of the future growth in value of Cortus’ projects, which are at the forefront of developments within the area of environmentally friendly energy. I am convinced that in the acquisition of Cortus we build a very strong platform for future value creation," said Robert Eriksson, CEO of Clean Tech East, in a comment on the proposed deal.
Clean Tech East's acquisition of Cortus will be made through payment in full in the form of newly issued shares. The transaction is subject to approval by an Extraordinary General Meeting in Clean Tech East and that the meeting will resolve in accordance with the Board’s entire proposal.
Clean Tech East will, subject to the decision of the Extraordinary General Meeting, in conjunction with the acquisition assume Cortus’ business focus and the company will be renamed Cortus Energy AB (publ).
The extraordinary general meeting of Clean Tech East will also resolve upon electing a new Board, with the re-election of Robert Eriksson and election of Per-Olov Norberg, Maria Wetterstrand, Rolf Ljunggren and Ulrik Jansson. Rolf Ljunggren, founder of Cortus, will become the CEO of the combined company.
The new Chairman of the proposed board, Per-Olov Norberg, states:
"I have been impressed by the technology level and management of the project. In addition, the plant is relatively low-cost and easy to build, and almost self-sufficient in operating energy. I think Cortus technology is very attractive for energy intensive industries, also if you see beyond the favorable environmental impacts".
At the same time Maria Wetterstrand, former spokesman for Sweden’s Green Party, has been proposed as a new member of the Board.
"I have been contacted by many inventors and entrepreneurs within the environmental business area since I left politics, but have so far declined to engage with their ideas. The industrial sector’s transition from fossil fuels is a project that is close to my heart, and is an area where much remains to be done. What I have seen of Cortus’ technology and management feels great, and Cortus have come further than most projects I've seen so far. Cortus shows that an industrial transition is possible. I am happy to take part in this work and make sure that Cortus’ is moving ahead."
Mangold Fondkommission AB is acting as financial advisor to the transaction and Gransäter & Partners Corporate Finance has been instrumental in procuring the underwriting.
Cortus mission is to provide cost effective and innovative bio-energy solutions for process, power and transportation industries based on the patented gasification technology WoodRoll ®. For more information see www.cortus.se .
For further information, please contact:
Rolf Ljunggren, CEO and founder of Cortus AB.
Tel: +46 70 694 48 98
Robert Eriksson, CEO CleanTech East Holding AB.
Tel: +46 70 111 26 15
Link to CleanTech East:s press release: http://www.cleantecheast.se/pr.html
High temperature combustion in process industries demands high calorific and clean fuels. Cortus is building the future of innovative and sustainable energy supply for the process industries based upon our new biomass gasification technology - WoodRoll ®. We supply clean renewable synthesis gas to energy intensive industries such as glass, pulp and paper, cement, minerals and lime.
WoodRoll is a new gasification technology processing biomass into clean gaseous fuel. This patented gasification process is divided into three steps, namely drying, pyrolysis and gasification. Unique to the WoodRoll is that the produced char is gasified in an indirectly heated reactor: the carbon is gasified with steam and produces synthesis gas. The char and steam are thus not mixed with the exhaust from combustion or nitrogen from the air. This produces a clean synthesis gas which is free from condensable tar residues and nitrogen aggregates.