Dallas, Texas 03/10/2014 (FINANCIALSTRENDS) – On 5th March, Rentech, Inc. (NASDAQ:RTK) announced that it has signed off on a agreement to sell its clean energy technology line of business to Sunshine Kaidi New Energy Group Co., Ltd. The deal also involves the hiving off of its product demonstration division as part of the package. This sale is expected to fetch Los Angeles based firm close to $15.3 million.
The agreement also provides for an additional payment of $16.2 million to be made to Rentech, Inc. (NASDAQ:RTK) by Sunshine Kaidi New Energy Group Co., Ltd on the successful completion of the construction of the operation plant in China. The payment would be made in lieu of the technology and technical knowhow that the company had provided Kaidi in the construction project. The deal also allows for the two companies to share in equal measure the proceeds from the sale of its product demonstration division based in Colorado.
Sunshine Kaidi New Energy Group Co., Ltd has disclosed that the equipment that it will come to own on the completion of this sale would be shipped out to the Wuhan province in China. The equipment would be used to complete the expansion project of its “biomass-to-liquids” demo factory.
Expressing his happiness at the conclusion of this agreement, Rentech, Inc. (NASDAQ:RTK) President, Chief Executive Officer, Director D. Hunt Ramsbottom Jr has been quoted to have said that, “The sale of these technologies and the decommissioned PDU is the final step in exiting our alternative energy technology-related operations. We continue to focus on driving near-term and long-term growth in our wood fibre processing and fertilizer businesses. We are pleased Kaidi has agreed to purchase these assets with plans to demonstrate and commercialize them in alternative energy projects.”
Rentech, Inc. (NASDAQ:RTK) also disclosed that due to the lack of conducive regulatory support in the U.S for developing clean energy solutions was one of the primary reasons for the sale of the property.