June 22, 2015 — (Vancouver, BC) Solegear Bioplastic Technologies Inc. and Ex-Tech Plastics, Inc. have executed a letter of intent (the “LOI”) to formalize an agreement to combine their bio-based business efforts to achieve faster growth of their share of the bioplastics market. Solegear and Ex-Tech have been working together since 2013, and believe that their respective bioplastic expertise will bring unique strategic and operational benefits to the joint venture.
“We are excited about the potential of this joint venture. Ex-Tech is one of the early innovators in the bioplastics industry and has built a meaningful and well-respected bioplastic business. I believe the two companies’ expertise, people and capital collectively focused on our common goal will only help strengthen our growth potential,” said Paul Antoniadis, CEO of Solegear. “The projected revenues and operational efficiencies for this joint venture are significant.”
Solegear’s strategy is to grow its bioplastics business both organically and through targeted joint ventures and acquisitions. After announcing a strategic partnership agreement with Ex-Tech in March of this year, Solegear and Ex-Tech have taken this further step to deepen the relationship in order to accelerate their collective bioplastic market share position.
“In completing a strategic commercial review with Solegear, it made sense for Ex-Tech to pursue the possibilities of a joint venture to create more momentum with our existing bioplastics business,” said William Riesbeck, President of Ex-Tech Plastics, Inc. “Our firm has been in business for 30 plus years and produces sheets from a wide range of materials such as PVC, PET, RPET & Bioplastics. I believe this JV will put more resources behind our Bioplastics business that will unlock more revenue potential than by going at it alone.”
The terms of the LOI remain confidential, however both firms continue to expand their commercial efforts in parallel while completing the milestones to formalize a definitive joint venture agreement.
About Ex-Tech Plastics, Inc.
Ex-Tech Plastics, Inc. was founded in Richmond, Illinois in 1983 as an innovator in recycled plastics sheet. Building on that foundation, Ex-Tech was one of the first extruders to successfully produce and market sheet made from sustainable materials. Ex-Tech delivers a diverse array of sheet solutions in PET, bioplastics, olefins and vinyl to domestic and international customers.
About Solegear Bioplastic Technologies Inc.
Solegear, based in Vancouver, British Columbia, is an innovator in the field of next-generation plastics. The Company is an advanced materials firm that engineers, produces and distributes high-performance bioplastics (bioplastics are a category of plastics that are bio-based, compostable, or both) through a capital efficient business model. Founded in 2006, Solegear has developed, and is commercializing, proprietary bioplastics technologies that utilize annually renewable plant-based ingredients formulated using green chemistry, to address the growing North American market opportunity for rigid consumer packaging and durable plastic goods.