BioHiTech Global, Inc., a technology and services company that provides sustainable waste management solutions, announced it has completed the acquisition of an additional 26.8 percent ownership stake in the nation's first high efficiency mechanical and biological treatment process (HEBioT) renewable resource recovery facility located in Martinsburg, W. Va.
According to the company, the acquisition makes BioHiTech the largest owner of the Martinsburg facility, enabling the company to consolidate the operations in its financial statements. The Martinsburg facility is expected to generate $7 million of annual high margin revenue beginning in 2019.
The facility utilizes a patented HEBioT process for the disposal and recycling of mixed municipal solid waste into solid recovered fuel. The process is expected to divert from landfills as much as 80 percent of the waste that enters the facility.
"This acquisition is an important part of our strategic growth plan, and we are excited to have become the largest owner of the first U.S. facility using this important environmentally beneficial technology,” said Frank E. Celli, CEO of BioHiTech Global, in a statement. “This flagship facility will add significant high margin revenue to our income statement and serve as the cornerstone to the planned rollout of additional HEBioT facilities in the coming years through our exclusive development rights agreement with Entsorga. With this important transaction now behind us, we look forward to continuing our efforts to build value for our stockholders by positioning BioHiTech for sustainable long=term revenue growth."
BioHiTech acquired the additional ownership stake in the Martinsburg Facility from Entsorga USA in exchange for the issuance of $1,886,330 million of newly issued Series E preferred stock, convertible into 714,519 shares of the company's common stock at a fixed price of $2.64 per share. Entsorga USA, a company owned by the principals of the Italian engineering firm that developed the HEBioT technology, will remain as a minority owner of the Martinsburg facility.
Under certain conditions, the company is obligated to redeem up to $400,000, or 151,515 shares, of the Series E preferred at the request Entsorga USA. A more detailed description of the transaction will be available in a current report on Form 8-K to be filed with the Securities and Exchange Commission.