Vertex Energy, Inc. Announces Successful Completion of Pilot Test Associated with Tensile Capital for Planned Joint Venture Partnership
January 10, 2020 at 12:02 pm
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Vertex Energy, Inc. announced that it has successfully completed a pilot test program required to proceed with Phase Two of its planned joint venture partnership with San Francisco-based investment firm Tensile Capital (Tensile). As first announced on July 31, 2019, Vertex and Tensile entered into a definitive joint venture agreement to accelerate the full development of the Company's Ohio-based Heartland base oil refinery, subject to a successful pilot test designed to validate a process by which used motor oil is converted into high purity base oil. In December 2019, the pilot test was successfully completed. Following the positive test results, Vertex and Tensile have recently commenced a formal review process and are negotiating final documentation relating to the planned Phase Two of the joint venture. While Vertex anticipates moving forward with Phase Two in the next few weeks, there can be no assurance that the parties will agree on final transaction terms or that Phase Two will proceed as planned.
Vertex Energy Inc. is an energy transition company that specializes in producing both renewable and conventional fuels. The Company is engaged in operations across the petroleum value chain, including refining, collection, aggregation, transportation, storage and sales of aggregated feedstock and refined products to end-users. Its segments include Refining and Marketing and Black Oil and Recovery. The Refining and Marketing segment is engaged in the refining and distribution of petroleum products and includes the Mobile Refinery and related operations. In addition, it aggregates a diverse mix of feedstocks petroleum distillates, transmix and other off-specification chemical products. The Black Oil business is engaged in operations across the entire used motor oil recycling value chain including collection, aggregation, transportation, storage, refinement, and sales of aggregated feedstock and re-refined products to end users. It owns a fleet of 68 collection vehicles.