Highlights
Acquisition of the adjacent 2.03 acres of prime M5 industrial lands dramatically increases SusGlobal's capacity for commercialization and distribution of its proprietary Renewable Natural Gas (RNG) production and fertilizer products.
The additional land allows SusGlobal to increase capacity to produce approximately US$7.5 million worth of organic fertilizer monthly and produce approximately US$7.5 million worth of RNG annually.
Colliers International Realty Advisors established an estimated fair market value of the property "As Complete" of US$14,222,000.
Toronto, Ontario--(Newsfile Corp. - November 7, 2023) - SusGlobal Energy Corp. (OTCQB: SNRG) ("SusGlobal") or (the "Company"), an environmental, agricultural, industrial biotechnology and renewables company, today announced it has completed the purchase of 2.03 acres of prime M5 Industrial Lands located adjacent to the Company's existing 3.26-acre facilities at 490 Nash Road North, in Hamilton, Ontario.
The purchase marks an impressive step forward for SusGlobal with a total 5.29-acre licensed site and solidifies its position as a leader in the organic waste processing, renewable natural gas, and fertilizer production industry in Southern Ontario.
As per the terms of the Purchase Agreement, the Company's wholly owned subsidiary, SusGlobal Energy Canada Corp., provided an initial deposit of US$72,070 on June 15, 2023, after receiving both a Phase I and a Phase II Environmental Site Assessment.
The parties signed a waiver of all due diligence, and the Company advanced a further US$151,345 on July 14, 2023, towards the purchase price of US$2,234,145. On November 2, 2023, we paid US$569,346 in cash and paid US$1,584,400 in the form of a take-back mortgage granted in favour of the seller on closing on November 2, 2023.
By leveraging the Company's Environmental Compliance Approval ("ECA") the facilities will have a processing capacity of 65,884 metric tonnes per annum of organic waste, translating to an increased capacity to produce approximately US$7.5 million worth of organic fertilizer monthly and produce approximately US$7.5 million worth of RNG annually.
Colliers International Realty Advisors Inc., at the Company's request, carried out an analysis of the property to estimate its prospective market value "As Complete". Based on their opinion report, the fair market value is estimated at US$14,222,000. The report describes the methods and approaches to value in support of the above conclusion, and contains the pertinent data gathered in their investigation of the market.
The acquisition of this additional property will allow for the processing of organics beginning in late 2024 upon completion of site plan and provide the space needed to manufacture, distribute, and store SusGro®, as well as an RNG facility to be developed and commence production in 2026 as part of an offtake agreement initiative (per the Company's previous press release of Oct. 3, 2023).
The expanded Hamilton facility will include a total area of approximately 50,000 square feet, this facility will serve as the hub for SusGlobal's ongoing development of proprietary formulations and branded products and will include an impressive 10,000 square feet of state-of-the-art Research and Development labs and office space. By investing in cutting-edge research and innovation, SusGlobal solidifies its commitment to delivering ground-breaking solutions that drive sustainable change. SusGlobal is paving the way for what the Company believes are revolutionary advancements in sustainable energy and agriculture. The Company has demonstrated this commitment to cutting-edge technology with the development of SusGro®, an award-winning unrivaled pathogen-free organic liquid fertilizer.
Mr. Marc Hazout, President and CEO of SusGlobal, expressed his excitement around the acquisition, stating, "We are thrilled to have secured these additional lands, at our existing Hamilton site with prestigious ECA. SusGlobal solidifies its position as a reliable partner for its municipal clients, ready to meet the growing demands of waste management and organic processing, while ensuring enhanced capacity for Hamilton's expanding green bin program. As municipalities strive to implement sustainable practices, SusGlobal stands at the forefront, providing vital solutions that align with environmental goals and regulatory requirements. Furthermore, the proximity of our Hamilton facility to the City of Hamilton's Kenora Transfer Station enhances logistical efficiency, egress, and future biogas expansion possibilities. Through this acquisition, we position ourselves for enhanced commercialization and distribution, enabling growth in revenue and cash flows derived from renewable natural gas and fertilizer sales, tipping fees, in addition to the lucrative monetization of carbon credits. SusGlobal is proudly spearheading the way with its stewardship and as leaders in the Circular Economy®."
About SusGlobal Energy Corp.
SusGlobal Energy is a sustainable energy, agriculture, and industrial biotechnology company.
With a portfolio of proprietary technologies, we convert organic material, such as landfill waste, into liquid biofuels, biogas, and fertilizers. These regenerative product applications and low emission products help power the energy grid and transportation sectors. Within the agricultural markets, SusGlobal products help increase crop yields and soil amendments - an excellent example is our brand, SusGro®, an award-winning, pathogen free organic liquid fertilizer.
As leaders in the Circular Economy®, management's purpose is to make SusGlobal the leader in proprietary waste to energy and regenerative technology and products.
For more information, please visit the Company's website at www.susglobalenergy.com.
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Safe Harbor Statement
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's objectives. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, lack of sufficient financial resources; variations in market conditions, currency and our stock; the Company's ability to obtain any necessary permits, approvals, consents or authorizations required for its activities; the Company's ability to produce energy, biogas, compost or organic fertilizer from its properties successfully or profitably, to continue its projected growth, or to be fully able to implement its business strategies and other risk factors described in the Company's filings with the U.S. Securities and Exchange Commission, which may be viewed at www.sec.gov.
Contact
SusGlobal Energy Corp.
Marc Hazout, President and CEO
(416) 223-8500 or Toll Free: 1-866-512-7374
Email: info@susglobalenergy.com
SOURCE: SusGlobal Energy Corp.
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