While both parties have reached preliminary agreement on the key terms of the proposed transaction, the final terms to be documented in the Asset Purchase Agreement are currently being negotiated and all related documentation finalized. Among other things, the proposed transaction is subject to customary closing conditions and regulatory approvals, including the approval of CMEC’s members. CMEC will seek member approval upon completion of the proposed Asset Purchase Agreement and distribution of CMEC’s informational materials to its shareholders. Timing of the transaction closing is expected in 2014.
In announcing this proposed transaction, CMEC’s CEO, Dana Persson stated, “CMEC fully examined its strategic alternatives and considered other proposals prior to entering into the exclusive Letter of Intent with Green Biologics, Inc. We chose Green Biologics as we believe its proposal represents the highest value to our shareholders.”
“After significant deliberation, we consider this agreement is in the best long-term interests of CMEC’s shareholders, employees, corn growers and the community at large. Green Biologics brings exciting new technology and product lines to the Little Falls facility. The Board of Directors and Management team will meet in the near future with shareholders to discuss Green Biologics’ offer and the process for seeking approval of the proposed transaction by CMEC’s shareholders.
In the interim, corn purchases, ethanol and co-product production efforts will continue in full force. Employees will produce and deliver high-quality products as usual, with no interruption of ethanol and co-products deliveries to our customers.”
Commenting upon the transaction, Joel Stone, President, Green Biologics, Inc. said, “We assessed a number of attractive acquisition alternatives prior to executing this letter of intent with CMEC. We could not be more pleased with the quality of the facility, the caliber of the workforce, and the strong support CMEC receives from its existing corn growers and the community at large. This is critically important to us as we will continue to procure locally grown corn from area producers. CMEC has been a leader and a pioneer in the U.S. ethanol industry. It is our intention that the Central MN facility will continue to carry on that tradition as a leader and a pioneer in the U.S. renewable n-butanol industry.”
Ocean Park Advisors acted as exclusive financial advisor to Central MN Ethanol Co-op on this transaction.