Increasing Material Use
Neo Material Technologies has announced the closing of the acquisition of 100% of all issued and outstanding shares of Recapture Metals Limited ("Recapture"). Neo has issued 4.5 million new common shares and paid CDN$6.5 million in cash to Recapture shareholders. Of the total consideration, 2.25 million of the new common shares and CDN$3.0 million will be held in escrow and released by an escrow agent in accordance with the terms of an escrow agreement in place, and subject to certain post closing adjustments. Neo will also make additional payments in cash or new common shares, at Neo s option, conditional upon certain agreed upon EBITDA targets for three calendar years, commencing in 2010, being met or exceeded. "The expansion of Neo s product line with Recapture s complementary rare elements gives Neo a footprint into new growing and exciting applications. Recapture also diversifies Neo s production base beyond the Asia Pacific region," said Constantine Karayannopoulos, President and CEO. "We welcome Larry Seeley and his team at Recapture to Neo and look forward to growing the business with them."
Recapture produces, reclaims, refines and markets high value niche metals and their compounds which are primarily used in the wireless, LED, flat panel, solar and catalyst industries. Recapture s current commercial product lines include gallium and indium and it is in the process of commercializing a rhenium recycling operation. With operations in Canada, the United States and Germany, Recapture has approximately 65 employees. Recapture will become part of the Company s Performance Materials Division (formerly the AMR Performance Materials Division).