(TheNewswire)
December 11, 2020- TheNewswire - Regina, Saskatchewan - HTC Extraction Systems (" HTC ") (TSXV:HTC) (OTC:HTPRF) announcesthat, conditional upon TSX Venture Exchange Inc. (“ TSXV ”) approval,and all other regulatory and shareholder requirements being met, HTCintends to spinout to its current shareholders, its existing energyclean tech business and assets (“ Clean Energy Division ”), in the form of a new energy clean tech company, namely“ Delta CleanTechInc. ” (the “ Spinout ” and also“ Delta CleanTech ”).
The Spinout of the Clean EnergyDivision will consist of the historic fourpillars of its clean technologies and business: 1) CO 2 capture 2) hydrogen production 3)solvent and ethanol purification and 4) carbon credit certificationand trading.
This will be accomplished by bundling HTC’s patentedprocess design IP, as well as its CO 2 capture and related solvent IPtogether under one single entity, whose focused mandate will be onpositioning itself as a leading technology provider in the energyclean technology sector.
BUSINESS UNITS:
CO 2 Capture : Over the last 16 years, HTC ExtractionSystems, through its three wholly owned subsidiaries, has developedcost-effective CO 2 capturesolutions for CO 2 enhancedheavy oil production, food grade CO 2 markets and industrial CO 2 applications. Delta CleanTech willparticipate in this sector through leveraging its proprietarytechnologies to significantly reduce the cost of CO 2 capture. Trademarked as Delta’sLCDesign®, this system has been engineered to reduce capital andoperating costs while delivering superior performance by loweringemissions and producing concentrated, high quality of CO 2 . The LCDesign® unit will captureCO 2 from power plants andother flue gas source such as hydrogen reformers, cement plants,refineries, or diesel generators.
Hydrogen Production CO 2 Capture - Blue Hydrogen : The Clean Energy Division began IP development with hydrogen modelling/design/simulationprocesses and staging platforms for reactor and catalyst designs in2003. It has set an industry benchmark forcost effective deployment of hydrogen production relatedCO 2 capture, recognized as Blue Hydrogen . The ability to cost effectively configure catalysts, adaptreactor designs, and capture CO 2 to accommodate multi-feed stocks, optimizes the deploymentof methane hydrogen reforming systems manufactured by OEMs which haveproven to date to be the most cost effective method of producinghydrogen. The Clean Energy Division has developed and is in theearly stages of commercializing technologies to produce hydrogen fromcrude ethanol and other bio-sources such as grains, and cellulouseffectively manufacturing bio-hydrogen that does not requirehydrocarbon as a feed stock.
Solvent and Ethanol Reclamation andRecycling : HTC Purification’s patented purificationtechnology is utilized by reclamation and extraction industrieslooking to reclaim, recycle and reuse the extracted solvents andalcohols, rather than have these contaminated fluids disposedunderground. Delta ’s re3 ( reclaim,recycle, reuse ) technology can save up to 30% ofthe required fluid costs. DeltaSolv® are custom designed,ethanol-based, solvent mixtures and additives that optimize extractionand ethanol reclaiming efficiency. This technology development workhas been done in conjunction with research facilities at theUniversity of Calgary.
Carbon Rx Inc. : Historically one of Canada’s largest carbon traders with a longhistory of carbon credit validation, certification led by experiencedcarbon asset and transaction managers. Large emitters in Canada havea net requirement of carbon reduction or pay increased taxes undercurrent legislation. Carbon trading leverages off-take agreementsand clean technology investments to offset these costlyexpenses.
Carbon Rx Inc. (“ Carbon Rx ”) isRegina-based and engaged in the development, verification andmarketing of CO 2 offsetcredits. Carbon Rx owns two business units leading the way in the developmentof aggregation and sale of carbon credits from; municipal landfillsand from agricultural no till and minimum tillage farming practices;having historically traded over $30,000,000 of carbon creditunits.
TRANSACTION HIGHLIGHTS:
HTC ExtractionSystems ’ existing shareholders will receive sharesin DeltaCleanTech , at a ratio yet to be determined;facilitating Delta CleanTech’ s access to pureplay Environmental SocialGovernance (“ ESG ”) clean tech capital both from Europe and North America.
Contemporaneously with the Spinout, HTC intends tosecure business and project development capital for DeltaCleanTech , in the range of approximately$3,000,000 to $4,000,000, by way of capital raise or a strategicacquisition.
HTC intends forthe DeltaCleanTech to be a reporting issuer in Canada. Apublic company listing will be pursued contemporaneously with theSpinout.
BENEFITS TO SHAREHOLDERS:
HTC’s Clean EnergyDivision has differentiated itself by developingits proprietary and patented extraction and purification technologies.The acceptance of climate change and the social license thatcorporations are moving towards, are upon us in force. A reducedenvironmental footprint, through the capture of CO 2 , production of hydrogen andutilization of reclaimed, recycled and reused extraction fluids, haseffectively become a currency of business, avehicle for punitive penalties and taxation, and a statement toshareholders who expect Environmental Social Governance(“ ESG ”) and Identity Preserved Waste (IPW TM ) protocolsfrom the companies they invest in.
The Clean Energy Division’s patented and trademarked IP, and trade secrets have been developed bya recognized team of industry leaders led by Dr. Ahmed Aboudheir,Chief Technology Officer for over 16 years. Dr. Aboudheir is a highlyregarded technology developer with a background in chemical andindustrial systems engineering having extensively published over 35process design, process engineering peer-reviewed publications andpresentations as a keynote speaker in energy clean tech forums aroundthe world.
HTC’s Spinout of DeltaCleanTech will be beneficial to shareholders.Among other benefits, it will unlock the value of the Clean Energy Division IP by allowing thisbusiness unit to be financed and its growth accelerated by a focused,skilled, and experienced management team, and it will allow our HTCshareholders to own shares in two public companies.
DELTA Extraction Technology Selectedfor Carbon XPrize Competition
Demonstrating HTC’s Leadership inCO 2 Extraction and Carbon Reduction
“Ten Teams fromFive Countries Advance to Finals of $20M NRG COSIA Carbon Xprize”
“ The $20 million NRG COSIA Carbon XPRIZE isa global competition to develop breakthrough technologies that willconvert CO 2 emissions from power plants andindustrial facilities into valuable products like building materials,alternative fuels and other items that we use every day. ”
HTC’s DeltaTechnology was selected in December of 2018, toprovide the extracted CO 2 for the Alberta Carbon Conversion Technology Centre (ACCTC) , test facility, forutilization by the finalists of the XPRIZE competition, and has customdesigned the Delta CO 2 Extraction plant to provide the required CO 2 as well as provide the flexibilityfor future CO 2 extractiontesting requirements. The plant was engineered, fabricated, andcommissioned by HTC’s Delta Clean Energy Division and its partners with the successful delivery ofcaptured and purified CO 2 beginning in September 2020. The Delta Clean EnergyDivision has benefitted already from this renouned XPRIZECO 2 utilization project showcase, with variousnew CO 2 caputre spinoff projects being enteredinto. HTC’sDelta Technology forms part of the Clean EnergyDivision that will be the subject matter of the Spinout.
Please visit https://deltacleantech.ca/ for moreinformation on HTC and its existing Clean Energy Division . For more detailed financialdisclosure on the Clean Energy Division ,please view HTC’s third quarter filings, available at www.htcextraction.com .
Upon completion of the Spin-out, HTC ExtractionSystems’ asset base and operations willconsist of its Hemp – CBD/Biofibre/Protein Business Unit(“ Business Unit ”), which includes the production contracting of broad acreindustrial hemp for: Cannabinoid Extraction; Biofibre forBioplastics, Biochar and Cellulose, as well as Hemp Seeds, Protein andHemp Seed Oil. By implementing its historicalskillsets, process design and standard operating procedures(" SOPs "), HTC will aim to become one of Canada’slargest hemp biofibre suppliers, hemp seed sellers and oil processorsand cannabinoid extractors and refiners. In order to accomplish itsobjectives, the Corporation intends to leverage its relationships withsuccessful farming leaders and draw on SOPs, best practices ingenetics, fertility, fibre processing, seed cleaning and processingincluding experience required in ingredient sales with multi-yearcontracts. HTC’s current net book value is approximately $34M, ofwhich this remaining Business Unit represents over 80%.
_____________________________________________________________________________
NEITHER THE TSX VENTURE EXCHANGE NOR ITSREGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIESOF THE TSX VENTURE EXCHANGE ACCEPTS RESPONSIBILITY FOR THE ADEQUACY ORACCURACY OF THE RELEASE.
For moreinformation contact:
Jeff Allison
Phone: 306?525-5130
E?mail: jallison@deltacleantech.ca
HTC corporate developments can be followed on www.htcextraction.com andis traded under the symbol HTC.
This press release contains"forward-looking statements" or "forward-lookinginformation" (collectively referred to herein as"forward-looking statements") within the meaning ofapplicable securities legislation. Such forward- looking statementsinclude, without limitation, forecasts, estimates, expectations, andobjectives for future operations that are subject to severalassumptions, risks, and uncertainties, many of which are beyond thecontrol of HTC. Forward-looking statements are statements that are nothistorical facts and are generally, but not always, identified by thewords "expects", "plans", "anticipates","believes", "intends", "estimates","projects", "potential" and similar expressions,or that events or conditions "will", "would","may", "could" or "should" occur or beachieved. This press release contains forward-looking statementspertaining to, among other things, the timing and ability of theCorporation to obtain regulatory and, if required, shareholdersapprovals to roll our the Clean Energy Division, the ability tosuccessfully list this division as a public issuer, its ability toprocure production contracting of broad acre industrial hemp and toleverage its relationships with successful farming leaders and thesuccess of operations, both in the Business Unit and the Clean EnergyDivision.
Forward-looking information is basedon current expectations, estimates and projections that involve anumber of risks, which could cause actual results to vary and, in someinstances, to differ materially from those anticipated by HTC anddescribed in the forward-looking information contained in this pressrelease.
Although HTC believes that thematerial factors, expectations and assumptions expressed in suchforward- looking statements are reasonable based on informationavailable to it on the date such statements were made, no assurancescan be given as to future results, levels of activity and achievementsand such statements are not guarantees of future performance.
HTC Purenergy Inc. (OTCQB:HTPRF)trades on the OTCQB Venture Market for early stage and developing U.S.and international companies. Companies are current in their reportingand undergo an annual verification and management certificationprocess. Investors can find Real-Time quotes and market informationfor the company on www.otcmarkets.com. (links to: http://www.otcmarkets.com/stock/htprf/quote ).
Copyright (c) 2020 TheNewswire - All rights reserved.