Dow Jones received a payment from EQS/DGAP to publish this press release.
DGAP-Media / 2019-02-01 / 11:18
*Press Release*
*Business Update and Changes to Board*
Pyrolyx AG (*Pyrolyx* or the *Company*) continues to make progress on the
construction of its plant in Indiana, USA, and remains confident that the
plant will achieve its scheduled fully operational completion date of 30
June 2019. Pyrolyx USA has secured additional debt funding of US$4.5 million
to complete the first plant and to facilitate the acceleration of the
construction of the second plant on the same property. Engineering design
and environmental permitting for the second plant has already commenced. The
loan is secured, interest bearing and has 10 year warrants over 32 shares
(0.8% of issued capital) in Pyrolyx USA Inc at an exercise price of
US$11,010.50 per share.
Pyrolyx USA is vertically integrating by entering into an agreement with J&R
Recycling to purchase its assets for US$4.5 million, subject to a number of
conditions precedent. The purchase is expected to close in August 2019. J&R
Recycling is the supplier of waste tyres to the Indiana plant and the asset
purchase is deemed beneficial for the following reasons. First, the purchase
secures the supply of waste tyres to both plants 1 and 2 on the Terre Haute,
Indiana property. Second, offering waste tyre generators, such as the major
retail chains or tyre manufacturers, a 'cradle to grave' approach fortifies
Pyrolyx's marketing strategy, allowing it to access proprietary supply
sources and further increases the barriers to entry to as yet undetermined
potential competitors of recovered carbon black manufacturers. Third, the
asset purchase is potentially financially lucrative, being priced
conservatively and being earnings accretive immediately.
The market for carbon black remains strong, reflected by robust prices and
demand outstripping supply. Increased costs of Pyrolyx's competitors, being
traditional carbon black manufacturers, that are required to satisfy
increasingly stringent environmental regulations, are either passed onto
their customers or affect their margins. Pyrolyx's process, being
essentially a closed end sustainable system, by its design, has a cost
advantage in environmental compliance over those competitors.
As previously announced, the restructuring of the German operations
continues to better align the Company's focus on the US market. The Company
remains in discussions with its workers at its research and design facility
in Stegelitz, Germany, and hopes to make an announcement shortly. The
Company has closed its Munich headquarters and many of the global
administrative functions have been transferred to Pyrolyx's US based
personnel.
The Supervisory Board has been supplemented with the appointment of Bill
Best and Stephen Roberts. Bill Best has over 30 years of experience in
investment banking and stockbroking. Mr Best was co-head of Macquarie Equity
Capital markets (ECM) at Macquarie Group Limited, an international
investment bank listed on the Australian Stock Exchange (ASX). Mr Best
joined Macquarie Bank in 1988 and grew the ECM business to occupy first or
second position in the capital raising league tables in Australia for many
years. Mr Best was a key player in the initial Public Offerings (IPOs) of
numerous public company entities in Australia and offshore, especially in
the listed infrastructure space.
Stephen Roberts is an experienced company director and Chairman or Director
of a number of listed and private commercial enterprises as well as large
not for profit organisations. Mr Roberts most recently was Regional Chief
Executive Officer of Mercer Investments Asia Pacific and Chief Executive
Officer of Russell Investments, Australasia. Throughout his career, he has
been the principal advising highly regarded and large investment,
superannuation and financial service companies. Mr Roberts has advised many
companies on corporate governance as well as implementing proper corporate
governance in his various roles including Chairman and as a member of the
Audit, Risk, Finance and Remunerations Committees of many large Australian
corporations.
*ENDS*
*About the Pyrolyx Group*
Pyrolyx AG (ARBN: 618 212 267) is the world leader in the extraction of rCB
(recovered carbon black) from end-of-life tyres. rCB is used to manufacture
new tyres as well as in the plastic, technical, rubber and masterbatch
industries.
Shares in the Company (WKN A2E4L4) are listed on the stock exchanges in
Frankfurt and Dusseldorf as well as on m:access (Munich Stock Exchange) and
also traded on the electronic trading system Xetra and the ASX (Australian
Stock Exchange) under the ticker PLX (ASX: PLX). For more information,
please visit www.pyrolyx.com [1].
End of Media Release
Issuer: Pyrolyx AG
2019-02-01 Dissemination of a Press Release, transmitted by DGAP - a service
of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Language: English
Company: Pyrolyx AG
Nymphenburger Str. 70
80335 München
Germany
Phone: +49 (0)89 856 335 50
Fax: +49 (0)89 856 335 55
E-mail: info@pyrolyx.de
Internet: www.pyrolyx.com
ISIN: DE000A2E4L42
WKN: A2E4L4
Listed: Regulated Unofficial Market in Dusseldorf, Frankfurt, Hamburg,
Munich, Stuttgart
End of News DGAP Media
771777 2019-02-01
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(END) Dow Jones Newswires
February 01, 2019 05:18 ET (10:18 GMT)
