ME2C® Environmental Defers All Major Debt & Secures Stock Repurchase Option with Principal Financial Partner
Company’s Financial Position Reinforced with Collaborative Agreements
CORSICANA, TX, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Midwest Energy Emissions Corp. (OTCQB: MEEC) ("ME2C Environmental" or the “Company”), a leading environmental technologies firm, announced today that it has reached an agreement that extends the maturity date of the Company’s entire unsecured and secured debt obligations until August 25, 2025.
The principal financial partner is the holder of an unsecured note with a principal amount outstanding of approximately $13.2M and a secured note with a principal amount outstanding of approximately $270,000. The notes were originally scheduled to mature on August 25, 2022, which has now been extended for three years. In addition, interest on the secured note, which note has been longstanding, has been reduced from 15.0% to 9.0% per annum. The unsecured note, as originally constituted, bears zero interest and entitles the lender to a certain non-recourse profit share. As part of the changes being announced, the lender has also been given an additional non-recourse profit share under the unsecured note.
In addition, the Company has negotiated a repurchase option which, at the Company’s sole discretion, allows for the Company’s buyback of a significant portion of stock held by the lender at a price of $0.50 per share.
“This agreement was crafted in collaboration with our primary lender and largest stockholder to ensure that ME2C will not be held back as we execute critical growth strategies over the next few years,” stated Richard MacPherson, Chief Executive Officer of ME2C Environmental. “We are very pleased with the confidence that our primary lender has shown with the extension of the Company’s only significant debt, along with our ability to repurchase stock.
“ME2C now has the full capacity to continue to achieve growth in key areas of our technologies’ advancement and the strategic enforcement of our patented IP,” continued MacPherson. “The deferment of this debt allows our capital to work toward gaining additional technology licensees and new product supply clients. We expect to continue to grow in a strong coal-fired marketplace, currently growing across most of the U.S. utility industry, over the next few years.
“We believe this reinforced position secures us financially to manage the ongoing IP litigation that we are actively pursuing, further establishing the Company’s ability to extract maximum value from our patented technologies for the betterment of our shareholders,” concluded MacPherson.
About ME2C® Environmental
ME2C Environmental is a leading environmental technologies company developing and delivering patented and proprietary solutions to the global power industry. ME2C’s leading-edge mercury emissions technologies and services have been shown to achieve emissions removal at a significantly lower cost and with less operational impact than currently used methods, while maintaining and/or increasing power plant output and preserving the marketability of byproducts for beneficial use. ME2C Environmental is a trade name of Midwest Energy Emissions Corp. For more information, please visit http://www.me2cenvironmental.com/.
Safe Harbor Statement
With the exception of historical information contained in this press release, content herein may contain "forward-looking statements" that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by using words such as "anticipate," "believe," "plan," "expect," "intend," "will," and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. Matters that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the gain or loss of a major customer, change in environmental regulations, disruption in supply of materials, capacity factor fluctuations of power plant operations and power demands, a significant change in general economic conditions in any of the regions where our customer utilities might experience significant changes in electric demand, a significant disruption in the supply of coal to our customer units, the loss of key management personnel, availability of capital and any major litigation regarding ME2C Environmental. In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release. ME2C Environmental does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in ME2C Environmental’s periodic filings with the Securities and Exchange Commission.
ME2C Environmental Corporate Contact:
Main: 614-505-6115 x-1001
Released November 3, 2022