Acquisition news fuels Alcar Chemicals Group Inc. (Pink Sheets: ACMG) run up the charts. Shares of Alcar Chemicals closed up $0.022 per share to $0.087 per share on volume of almost 20 million shares.
Last week Alcar Chemicals announced that Siam Renewable Energy Group Ltd. approved and signed a definitive agreement to acquire the controlling interests of the company. Siam will acquire 55 percent of the company for a total investment of $282 million, a value of over $2 dollars per share.
Some highlights of the deal include the following: * Siam will invest a total amount of $282 million for a total of 137.5 million restricted shares with the first amount of $7.2 million in the form of a convertible loan. * Warrants are expected to be issued with exercise dates for each of the next four years. * With the signing of the agreement, Dr. Cavasin’s resignation as chief executive of Alcar Chemicals and his new position at Siam as chief operating officer and director of operations becomes effective. * The deal is expected to close on or before May 7, 2007.
Later in the week, Alcar Chemicals announced that Siam had finalized the restructuring plan. According to the plan, Alcar Chemicals will be restructured into two companies. ACMG Inc. – for Alcar Chemicals Manufacturing Group – will remain in effect as the operating company synthesizing ethanol, polyols and sweeteners from renewable natural resources and bio-waste. ARTL Inc. – for Alcar Renewable Technology Licensor – will be dedicated to building reactors and licensing the different technologies.
According to Alcar Chemicals, following the restructuring program ACMG Inc. is expected to reach approximately $750 million in revenues by 2010 while ARTL Inc. is expected to gross $1 billion annually as of the same year.
Siam Renewable Energy Group is an international business corporation formed by private investors who started different technology funds and venture capital groups active in the energy sector since the early nineties.
Alcar Chemicals has been concentrating on innovative methods for biomass — forestry waste, agricultural waste and non-food crop – valorization for the past decade, specifically petroleum-independent fuel and plastics resin production.
In early trading today, shares of Alcar Chemicals are trading up $0.003 per share to 9 cents per share on volume of almost 1.5 million shares.
