TORONTO, Aug. 24 /CNW/ - 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
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."
GMP Securities L.P. acted as financial advisor to Neo on this
About Neo Material Technologies
Neo Material Technologies is a producer, processor and developer of
neodymium-iron-boron magnetic powders, rare earths and zirconium based
engineered materials and applications through its Magnequench and AMR
Performance Materials business divisions. These innovative products are
essential in many of today's high technology products. Magnequench's Neo
powders are used to produce bonded magnets, generally used in micro motors,
precision motors, sensors and other applications requiring high levels of
magnetic strength, flexibility, small size and reduced weight. Rare earth and
zirconium applications include catalytic converters, computers, television
display panels, optical lenses, mobile phones and electronic chips. The
Company is headquartered in Toronto, Canada and has approximately 1,300
employees in 15 locations, across 10 countries.
For further information:
For further information: Michael Doolan, Chief Financial Officer, (416)
367-8588, ext.335, Website: www.neomaterials.com, e-mail:
email@example.com; Ali Mahdavi, Investor Relations, (416) 962-3300, ext.
225, e-mail: firstname.lastname@example.org