Neo Material Technologies Acquires Niche Metal Reclamation Business

Neo Material Technologies Inc. (TSX: NEM) (the "Company" or "Neo") and privately held Recapture Metals Limited of Peterborough, Ontario ("Recapture") jointly announced the signing of agreements today whereby Neo will acquire 100% of all issued and outstanding shares of Recapture. The transaction is expected to close on August 31, 2009.

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. In 2008 and 2007 Recapture had revenues of Cdn$22.5 million and Cdn$24.1 million, respectively. With operations in Canada, the United States and Germany, Recapture has approximately 65 employees.

Under the terms of the agreements, Neo will issue 4.5 million new common shares and pay CDN$6.5 million in cash to Recapture shareholders, subject to 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.

"This acquisition provides Neo with a solid platform and is a first step in our stated strategy to diversify into other complementary rare elements and specialty materials. Recapture's strong hydrometallurgical skills in both primary production and recycling coupled with Neo's global sales organization, technical skills and presence in Asia make a powerful combination," said Constantine Karayannopoulos, President and CEO, of Neo Material Technologies Inc. "On behalf of everyone at Neo, we look forward to working with our new colleagues at Recapture."

Larry Seeley, President of Recapture, commented: "The employees of Recapture Metals Limited have built a tremendous foundation for a world class rare metals organization. The partnering with Neo will provide experience, resources and diversification to further facilitate growth and implementation of our long term vision."

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.