Solegear Bioplastic Technologies Inc. (TSX-V:SGB) (“Solegear” or the “Company”) announced today that it has formally closed the previously announced strategic acquisition of the bioplastics division of Ex-Tech Plastics, Inc. (“Ex-Tech”) for consideration of $1.33 million in common shares of the Company at a deemed price of $0.20 per share (the “Acquisition”). Ex-Tech, based in the Chicago, Illinois, area has been a leading manufacturer of extruded plastic sheets for over thirty years.
The Acquisition is expected to provide Solegear with annualized revenues of an estimated US$2 million, which the Company expects to use as a base for further growth and development. As consideration, Solegear has issued 6,650,000 common shares to Ex-Tech in respect of the transaction, all of which are subject to a 24-month hold period. The terms of the acquisition were first announced in a Solegear news release distributed on March 17, 2016.