CleanTech Company Raises $39.1M with $10.2M from Government Grants and R&D Incentives | Addresses a Pressing Need for Clean Waste Disposal

“There are 26 million end-of-life tyres (ELT) generated each year in Australia – the bulk of which are currently exported. This changes in December 2021 by Federal Government legislation. 

Green Distillation Technologies Corporation (GDTC) addresses this problem by having an operational plant dedicated to recycling end-of-life tyres, eliminating waste, and producing profitable oil, carbon, and steel commodities – providing a great opportunity for ESG investors committed to sustainability.”

John Fletcher, Executive Chairman , GDTC

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Executive Summary

GDTC is an Australian CleanTech public company that converts end-of-life tyres into carbon, oil, and steel, with zero physical waste and a negative carbon footprint.

The company’s proprietary Destructive Distillation process disposes of and recycles end-of-life tyres in a safe, environmentally friendly, and energy-efficient way. GDTC generates income from four high-demand revenue streams: tyre disposal, production of low carbon fuel, carbon, and steel wire.

Investment Highlights

  • The GDTC team has extensive corporate, financial and technical experience.
    • GDTC Chairman John Fletcher was the CEO of Coles Myer, where he grew shareholder returns by 31% a year and achieved a $20B exit when Wesfarmers acquired Coles. John also grew shareholder returns by 41% a year as CEO of Brambles Industries (40,000 employees) and was a non-executive director of Telstra.
    • Chief Technical Officer Dennis Randall has a PhD and has invented waste-to-energy and renewable energy technologies.
  • GDTC has already raised $39.1M, including $10.2M from the Australian federal government through Commercialisation Australia grants and R&D incentives.
  • 1.7 billion ELTs are generated globally each year with limited commercial solutions for recycling– this is an excellent opportunity for investors to help the company recycle these ELTs.
  • 71% of tyres generated in Australia are currently exported. Federal government legislation will come into effect on December 1 2021, banning the export of whole baled tyres, and will double the number of tyres to be disposed of locally. There is no current capacity to deal with this issue.
  • The company is paid gate fees to dispose of ELT with low processing/input costs where feedstock is a revenue stream. GDTC results in zero physical waste and has a negative carbon footprint.
  • The first commercial plant is undergoing expansion to facilitate 24/7 operations after 12-months of testing and refinement.
  • The site for the second commercial plant is secured, designed, fully permitted, and shovel-ready. Additionally, five sites have been identified across Australia.
  • Internationally, the company will form local strategic partnerships to build/operate in each region.
  • Each of the company’s recycling plants will process approximately 6% of Australia’s current annual waste tires. These are expected to generate about $12M revenue, EBITDA $8.5M, NPAT $5.2M, and 44% return on capital.

Investment Offering

GDTC is raising $10M in ordinary shares and $2.5M through convertible notes (10% coupon paid quarterly in cash up to 31/12/22, with a 30% discount to the next proposed capital raise of no less than $15M).

The funds will be used to expand the plant to facilitate 24/7 operations, establish six new plants in Australia, and expand internationally through strategic partnerships.

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