Ottawa, ON – Thermal Energy International Inc. recently announced that it has expanded its suite of energy saving solutions by acquiring the award-winning, patented Dry-Rex™ bioenergy technology from Mabarex Inc., of Montreal.
According to Thermal Energy International Inc., Dry-Rex™ turns bark, sludge and other biomass into high-efficiency, low-cost, low-emission biofuel for power producers, pulp and paper, and other industries.
Terms of the deal include taking immediate ownership of the exclusive worldwide license to the Dry-Rex™ technology and the transfer of all Dry-Rex™ intellectual property (patent) rights on an earn-out basis over five years. Thermal Energy is also acquiring the global Dry-Rex™ sales relationships and the existing roster of active sales opportunities from Mabarex. Thermal Energy has been actively marketing this new solution for several months and is already engaged in early-stage project development talks with prospective clients for Dry-Rex™ solutions.
Total value of the acquisition is $3.25M. This includes the issuance of 500,000 common shares of Thermal Energy at a deemed price of 16 cents a share. The remainder of the acquisition price will be retired through royalty payments on Thermal Energy's sales of Dry-Rex™ solutions.
Each of Thermal Energy's typical FLU-ACE® waste heat recovery projects have been in the $1M–$2M range. Whereas, Dry-Rex™ applications, when combined with our heat recovery solutions are expected to average $7M–$15M with a similar attractive payback period, offering Thermal Energy the ability to increase revenues on a per-customer basis