BP extension and funding update


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Vancouver, British Columbia – (Newsfile Corp. – December 2, 2021) – ReGen III Corp.(TSXV: GIII) (OTCQB: ISRJF) (FSE: PN4)(“ReGen III” or the “Company”) is pleased to provide the following updates regarding its sale, purchase and marketing agreement with bp and the overall financing of the project.

On May 1, 2021, bp signed a sale, purchase and marketing agreement with ReGen III for the purchase of one hundred percent (100%) of the Company’s base oils produced in its recycling facility project of 5,600 bpd used motor oil in Texas. Section 13.3 (b) of this contract required ReGen III to close funding for the project by December 31, 2021 (the “Financial Close Date”) and Section 3.5 required ReGen III to submit a written timeline estimating the timeline for construction of Texas facilities within 180 days of contract performance date.

bp recognizes the considerable progress made by ReGen III on the financing and engineering fronts for the Company’s proposed recycling facility in Texas. Due to the state of negotiations with several potential funding partners described below, their respective due diligence processes and the timeline for completion of the ongoing Engineering and Initial Design Study (“FEED”). , bp agreed to:

  1. postpone the Financial Closing Date from December 31, 2021 to June 30, 2022; and
  2. modify the delivery date of a written schedule estimating the construction schedule to be less than one hundred and eighty (180) days from the financial close date.

FINANCING PROGRESS ACHIEVED ON THE ENTIRE CAPITAL PILE

Funding for the company’s used motor oil recycling facility in Texas will be through a combination of debt and equity, with more emphasis on debt and financing at the project level. .

The Company has now received both a letter of interest and indicative preliminary conditions for a project level, US $ 108 million senior credit facility from Export Development Canada (“EDC”). EDC accepts that ReGen III brings qualified financial partners alongside EDC in a senior secured position, for a combined debt of up to US $ 135 million. Final terms continue to be advanced with EDC and will be finalized once the Company’s FEED study and EDC’s due diligence process are completed. ReGen III is pleased to continue to advance discussions with EDC while other institutional groups are still in discussions with the Company about debt financing for our Texas recycling facility.

The ReGen III team has spent considerable time identifying, negotiating and ultimately initiating due diligence processes with a variety of equity-focused investors interested in funding the company’s recycling facility in Texas. As a result of these efforts, we are pleased to announce that ReGen III has signed a Non-Binding Letter of Intent (“LOI”) with a multi-billion dollar private equity (“PE”) company focused on green energy infrastructure. ReGen III has agreed to an equity investment, an exclusive standstill period of up to 60 days, effective November 29, 2021, to give the private equity firm additional time to complete its due diligence process. reasonable process and move to a binding agreement.

“Our team has reviewed many potential equity financing proposals and met with many investors during the Texas recycling facility financing process. Beyond the goal of meeting our project financing requirements, our team has invested considerable effort in finding a financial partner whose management team is not only culturally aligned but is also motivated by the goal of reducing CO2 significantly equivalent emissions. By signing this letter of intent, we believe we have found this partner “, said Greg Clarkes, President and CEO of ReGen III. “We look forward to quickly completing the ongoing due diligence process and moving to a binding agreement. “

The leaders of ReGen III are optimistic about a positive outcome of the ongoing PE due diligence process and believe that a partnership with this team and the advancement of their letter of intent towards a binding agreement is in everyone’s best interest. shareholders. This PE firm has pre-existing business relationships with a number of our major partners while also providing a minimum dilution financial solution and sound financial commitment for future projects.

While there can be no guarantee that funding will be finalized with this part, it is anticipated that a successful closure will bring considerable financial and advisory resources, not only to our Texas recycling facility, but the rest. of the global pipeline of ReGen III projects over the next two years.

A finder’s fee of two percent (2%) in cash and two percent (2%) in common shares of ReGen III will become payable to an approved entity upon successful closing of the proposed equity financing.

About ReGen III

ReGen III is a clean technology recycling company that creates more sustainable solutions that include better environmental outcomes and a compelling economy. ReGen III has a portfolio of patented technologies that allow Used Motor Oil Refineries (“UMO”) to produce a higher value base oil blend than traditional methods, including 55% Group III.

Earlier this year, ReGen III engaged Koch Project Solutions, LLC (“KPS”) to provide project execution management services leading to the turnkey delivery of its new facility in Texas, through which KPS will lead the world-class engineering, construction and approved supplier of ReGen III. (PCL Industrial Management Ltd., Koch Modular Process Systems and Duke Technologies) until the completion of detailed design, construction, commissioning and start-up. ReGen III has already signed a definitive offtake agreement with bp to purchase 100% of the company’s base oils produced at the proposed re-refining facility in Texas.

For more information on ReGen III or to subscribe to the company’s mailing list, please visit: www.regeniii.com/investors/corporate-presentations and www.regeniii.com/newsletter-abonnement.

On behalf of the Board of Directors of ReGen III Corp.
“Greg Clarke”
Greg Clarke
Chief Executive Officer

For more information, please contact:

Marc Redcliffe
Executive Vice President, Corporate Finance
ReGen III Corp.
Phone. : (778) 668-5988
Email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information contained in this press release constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”). Without limiting the foregoing, this forward-looking information includes statements regarding the business plans, expectations and objectives of the Company. In this press release, words such as “could”, “could”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend” de ”,“ plan ”,“ estimate ”and similar words and their negative form are used to identify forward-looking information. Forward-looking information should not be interpreted as a guarantee of future performance or results, and will not necessarily constitute precise indications as to whether, or at what times or by which, such future performance will be achieved.The forward-looking information is based on information available at the time and / or on the good faith belief of the management of the Company concerning future events and are subject to known or unknown risks, uncertainties, assumptions and other unforeseeable factors, many of which are beyond the limits of the Company. these and other factors and assumptions underlying the forward-looking information contained in this press release, please consult the management’s discussion and analysis and the most recent financial statements of the Company and other documents filed by the Company with the Canadian commissions. securities and the discussion of the risk factors set out therein. These documents are available on www.sedar.com under the Company profile and on the Company website, https: //www.ReGen III.com/. The forward-looking information presented here reflects the Company’s expectations as of the date of this press release and is subject to change after this date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/106364


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