Comstock Inc., a leader in hard technology developments enabling clean energy, recently announced new revenue contracts for its solar panel recycling business, an international equity partnership with revenue and royalty generating agreements for its low carbon, lignocellulosic fuels business, certain asset sales and an indicative term sheet for $325 million in gross funding through SBC Commerce LLC (“SBCC”), a U.S. based, globally positioned, private equity group.
Today, the Company announced an additional convertible debt financing of $3.5 million, with an option for an additional $1.5 million, to provide the liquidity and capacity to continue the fast pace of commercial transaction execution in the fuels and metals segments. The remainder of the Comstock’s convertible debt has been either converted, redeemed or extinguished.
“Our commercialization pipelines have grown, broadened and accelerated as our teams have been effective in demonstrating our remarkable, commercial-ready clean technologies, that are now translating into real market adoptions,” said Corrado De Gasperis, Executive Chairman and CEO of Comstock Inc. “We raised additional capital with trusted partners to ensure that we maintain and accelerate our current commercialization pace and carefully structured this deal with higher, near term conversion premiums (initially 200% of yesterday’s close), full redemption rights, and a prohibition on any variable rate equity lines, all in a thoughtful effort to minimize dilution.”
The SBCC transactions are progressing and subject to final structuring, documentation, due diligence and applicable regulatory approvals. This term sheet represents a combination of direct investments and certain asset sales that recognizes significant valuations, nearly $500 million in management’s estimates, for the Company’s three businesses and positions essential growth capital to accelerate the commercialization of its fuels, metals and mining businesses. Comstock will announce each of the transactions as the definitive structures and agreements are finalized and funded.
Comstock Fuels offers advanced lignocellulosic biomass refining solutions that produce market-leading yields of cellulosic ethanol, gasoline, renewable diesel, sustainable aviation fuel, and other renewable fuels at extremely low carbon intensities (15 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ), that are proven to produce up to 125 GGEs per dry metric ton of feedstock on a GGE basis, depending on feedstock, lignin content, site conditions, and other parameters. Comstock is currently planning to build, own, and operate its first four U.S. facilities.
Comstock Metals has now received materials from new, local, regional and nationally recognizable customers where they coordinated and enabled the decommissioning of these end-of-life panels from their facilities and coordinated the transportation of these panels to its permitted facility in Nevada where the materials will be processed and recycled.
“We are meticulously planning, organizing, and coordinating with SBCC and it is important that we complete certain prerequisites for ourselves and our capital partners, in terms of certain tax-efficient entity reorganization and other customary realignments before taking in any of the committed funds. We are pleased and excited with the collaboration and progress and are confident about closing these transactions over the coming months,” concluded De Gasperis.
