CPE News (3/25/2021) – K.B. Recycling Industries Ltd., dba as Alkemy, has filed a preliminary prospectus in connection with a proposed initial public offering of ordinary share units. The terms of the offering are to be announced.
The prospectus also qualifies the distribution of 4,334,862 Subscription Receipt units to be issued upon the deemed exercise of 4,334,862 Subscription Receipts. The Subscription Receipts issued on February 25, 2021 at a price of CDN $0.29 per Subscription Receipt for gross proceeds to Alkemy of CDN $1,257,109.98
Alkemy has applied to list its ordinary shares and warrants on the TSX Venture Exchange (TSX-V).
The offering is being co-led by INFOR Financial Inc. and Cormark Securities Inc. as joint bookrunners. Miller Thomson LLP and Gornitzky & Co. act as Canadian legal counsel and Israeli legal counsel respectively to Alkemy while Stikeman Elliott LLP and Yigal Arnon & Co. are acting as Canadian and Israeli legal counsels to the underwriters respectively.
Beit She’an, Israel based K.B. Recycling has developed a unique plastic recycling process to recycle plastic bags and sheets traditionally not considered economically viable for recycling and as such have become one of the largest plastic pollutants in the world. Alkemy employs a dynamic one-step process that does not require separate recycling and production plants. Alkemy’s process includes both recycling and finished product manufacturing in a single process called “waste-to-product”, allowing Alkemy to reduce the cost of the recycled plastic as raw materials, and increase the profit margin per metric ton.
Alkemy has been backed and controlled by Sullam Holdings L.R. Ltd. and Tedea Technological Development and Automation Ltd. (Tel Aviv/TASE: TEDE) with each controlling 28,945,000 ordinary shares or 49.5% of pre-IPO outstanding shares.
Up closing of the offering, Sullam and Tedea each expect to hold approximately 24.76% of issued and outstanding ordinary shares, or approximately 21.93% on a fully diluted basis.
photo credit: K.B. Recycling/Alkemy
News Release
K.B. Recycling Industries Ltd. files preliminary prospectus for initial public offering of ordinary shares
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Toronto, Ontario and Beit Shean, Israel, March, 25, 2021 – K.B. Recycling Industries Ltd. (“K.B. Recycling” or “Alkemy” or, the “Company”) today announced that it has filed, and obtained a receipt for, a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada, except the province of Québec, for a proposed initial public offering of ordinary shares (the “Offering”). Copies of the preliminary prospectus are available on SEDAR at www.sedar.com.
The Offering is being co-led by INFOR Financial Inc. and Cormark Securities Inc. as joint bookrunners.
The preliminary prospectus contains important information relating to the Offering and the Company and has not yet become final for purposes of a distribution of securities to the public. No securities regulatory authority has either approved or disapproved the contents of this news release. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any province or territory of Canada prior to the time of receipt for the final prospectus or other authorization is obtained from the securities regulatory authority in such province or territory. This news release does not provide full disclosure of all material facts relating to the securities offered. Investors should read the preliminary prospectus, final prospectus and any amendment, for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision. The ordinary shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the ordinary shares may not be offered or sold within the United States except pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.
About K.B. Recycling
K.B. Recycling is an environmental technology company based in Israel, and carries on business under the name “Alkemy”. Alkemy has developed a unique plastic recycling process to recycle plastic bags and sheets traditionally not considered economically viable for recycling and as such have become one of the largest plastic pollutants in the world. Alkemy employs a dynamic one-step process that does not require separate recycling and production plants. Alkemy’s process includes both recycling and finished product manufacturing in a single process called “waste-to-product”, allowing Alkemy to reduce the cost of the recycled plastic as raw materials, and increase the profit margin per metric ton.
For further information, please contact: Shmuel Porre Chief Executive Officer K.B. Recycling Industries Ltd. Tel: +972526016888 Email: shmulik@kb-recycling.com