Vancouver-based Arrowstar Resources Ltd. intends to acquire 100% of Recycle Fuel Technologies Inc., a company that plans to recycle used vehicle tires, technical rubber and plastics and convert them to energy and graphitic carbon black, according to a June 13 news release.
Arrowstar will pay a total of US$5.0 million in cash and shares to the beneficial owners, Carlos and Lucian Sorentino. Recycle Fuel Technologies intends to develop, construct and operate plants based on its proprietary thermolysis depolymerization technology that enables recycling of used vehicle tires, technical rubber and plastics.
The company already has a pilot plant with a capacity of 500 tonnes per year in Eisenhüttenstadt near Berlin, Germany. The first commercial plant is expected to have a capacity of 24,000 tonnes, expandable to 48,000 tonnes.
Arrowstar plans to conduct a financing to raise C$5.0 million at 20 Canadian cents per share to fund the acquisition, commissioning the pilot plant, plant engineering and for general working capital.
Following the transaction, the company intends to change its name to Recycle Fuel Technologies Inc. As part of the deal, Carlos Sorentino will join Arrowstar as president, CEO and director.