Vancouver, British Columbia — (Newsfile Corp. – April 4, 2023) — ReGen III Corp. (TSXV: GIII) (OTCQX: ISRJF) (FSE: PN4) (“ReGen III” or the “Company”) is providing the following update.
After the successful completion of offtake product testing in late 2020, ReGen III ratified a Sales, Purchase & Marketing Agreement (“SPA”) in May 2021 with BP Products North America Inc. (“BPPNA”), a distillates trading and origination division of BP PLC. Subsequent amendments to the SPA required ReGen III to secure financing for its Texas recycling facility by March 31, 2023.
After the close of trading on April 3, 2023, and in spite of the recent advancements being made on project financing with Export Development Canada, National Bank Financial and Raymond James Financial, ReGen III was notified that due to BPPNA’s internal procedures and the Company not closing project financing by March 31, 2023, the SPA has been terminated.
ReGen III would like to thank the teams at BPPNA for the time, faith and technical support they spent on the Company’s project over the past three-and-one-half years.
The Company’s patented and disruptive processing technology remains a differentiated offering to capture global demand for Group III base oils. The Company continues to pursue financing options for its US Gulf Coast recycling facility while exploring other market opportunities where it can apply its patented technology. The dissolution of this agreement allows the Company to evaluate alternative opportunities and relationships that have surfaced over the past twenty-four months.
Group III base oils are in high demand globally while onshore North American production of Group III base oils will remain in structural short supply for the foreseeable future. Geopolitical developments have led to governments focusing on security of commodity supply and looking to increase domestic production. ReGen III’s Group III base oil has successfully passed rigorous testing by Afton Chemicals, Castrol, several majors, super-majors and global blenders. Our re-refined products meet or exceed American Petroleum Institute standards.
ReGen III management has established and cultivated relationships with these majors, super-majors and global blenders regarding geographically diverse, varying volume & product specifications and varying contract durations over the past four years. The Company’s management continues to have active discussions with these potential offtake buyers and blenders, who have historically and are continuing to actively propose business relationships and will update them about the availability of ReGen III’s lower carbon, sustainable, Group II+ and Group III base oils.
ReGen III’s management has discussed the SPA development with the Company’s financial advisors at National Bank Financial and Raymond James. Both teams remain supportive of ReGen III and are continuing to advance their respective financing processes.
About ReGen III
ReGen III is a cleantech company commercializing disruptive, patented technology to recycle used motor oil (“UMO”) into high-value Group III base oils. With a focus on creating sustainable solutions that generate better environmental outcomes and compelling economics, the Company’s ReGen™ process is expected to reduce CO2e emissions by 82% as compared to virgin crude derived base oils combusted at end of life.
In 2022, ReGen III completed FEL2 and value engineering for the Company’s 5,600 bpd UMO Texas recycling facility, where world class engineering, construction and licensed vendor teams – including Koch Project Solutions, LLC, PCL Industrial Management Ltd., Koch Modular Process Systems and Duke Technologies – are providing detailed design, construction, commissioning, and start-up services.
Operating in an underserved segment of the base oil market, ReGen III aims to become the world’s largest producer of sustainable Group III base oil.
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-subscription.
For further information, please contact:
Tel.: (604) 806-5275
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 other than statements of historical facts contained in this news release constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”). Without limiting the foregoing, such forward-looking information includes statements regarding the Company’s business plans, expectations, capital costs and objectives. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking information. Forward looking information should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information is based on information available at the time and/or the Company management’s good faith belief with respect to future events and is subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company’s control. For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company’s most recent Management’s Discussion and Analysis and financial statements and other documents filed by the Company with the Canadian securities commissions and the discussion of risk factors set out therein. Such documents are available at www.sedar.com under the Company’s profile and on the Company’s website, https://www.ReGenIII.com/. The forward-looking information set forth herein reflects the Company’s expectations as at the date of this news release and is subject to change after such 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, other than as required by law.