GEN III OIL - A PRIMARY BUY OUT TARGETFor those not up to spead on the GIII story and the involvement of Parkland :
- GIII is leasing the Bowden plant in Alberta from Parkland
- GIII will be constructing a 2800 BPD plant re-refining plant converting used motor oil into saleable group II+ and group III base oils
- Elbow River, a Parkland subs, has an offtake agreement for 100% of production from the Bowden plant
- GIII getting increased visibility in the market with ongoing discussions with 2 international super majors, with already 1 LOI signed and nearing the signature of a definitive agreement
- Increasing strong investment appetite for ESG, clean energy type investments
- discussions on financing expected to close very soon, confirmed support from EDC and strong interest from First Nations Groups
- on 12 months operations, Bowden expected to generate 85 M in EBITDA and 65 M in FCF
Under the motto " Build it and they will come " , buyout interest is already increasing, multiple CA's have been signed and the plant is not built yet.
Keep an eye on this one.
Leo