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Greenway and Mabert Agree in Principle to Joint Venture Opportunity
ARLINGTON, TEXAS, July 23, 2019 (GLOBE NEWSWIRE) -- Greenway Technologies, Inc. (GWTI), an advanced gas-to-liquids (“GTL”) technology development company today announced that Mabert LLC, a company controlled by Greenway Director, Kevin Jones, which also acts as agent for the Company’s lenders, acquired INFRA Technology Group’s U.S. GTL plant and technology located in Wharton, Texas. Mabert purchased the entire 5.2-acre site, plant and equipment, including INFRA’s proprietary Fischer-Tropsch (“FT”) reactor system and operating license agreement. Greenway and Mabert have agreed in principal to enter into a joint venture whereby GWTI, Mabert and a third-party investment group will jointly fund and participate in plant operations going forward. The parties are currently working to complete the final joint venture structure and related operating participation agreements.
As consideration for its interest in the joint venture, the Company is expected to provide a license to its patent-pending G-Reformer™ natural gas reforming technology and a G-Reformer unit. As the first GTL operating plant using Greenway’s proprietary technology and equipment, this facility is initially expected to yield a minimum of 75 barrels per day of gasoline and diesel fuels from converted natural gas. Greenway is also expected to contribute engineering and operations personnel to the joint venture, who will be responsible for integrating Greenway’s G-Reformer technology with the existing INFRA FT system. The Company’s Board of Directors voted on July 19, 2019, to adopt the resolution affirming GWTI’s partnership in the new joint venture. The resolution’s vote was passed with approval from five of the six GWTI Directors, with Kevin Jones abstaining from the vote.
Ray Wright, Greenway’s Chairman of the Board stated, “Greenway’s anticipated participation in the joint venture’s conversion of this existing GTL production facility marks a major milestone in our company's history. Not only will we be able to complete our engineering certifications, a necessary step for future G-Reformer licensing and sales, we expect that this facility will produce a substantial amount of saleable waxless liquid fuels, demonstrating what we believe will be the world’s first economically viable commercial small-scale GTL plant.”
Tom Phillips, Vice President of Operations and chief engineer for Greenway said, “Once our G-Reformer is fully integrated, this GTL plant will be the first commercial-scale production facility using Greenway’s proprietary technology. We will have the capability to test and optimize various configurations of our unique Fractional Thermal Oxidation™ (FTO) gas reformation process, as well as expedite the engineering certifications necessary to license our front-end G-Reformer technology to other GTL producers. We believe that the successful demonstration of our patented and proprietary technologies at this GTL facility will allow Greenway to participate in a number of other GTL projects around the U. S.”
Mr. Wright added, “We are grateful that Mr. Jones, one of the largest stockholders in Greenway, has agreed to partner with the Company to realize this exceptional and timely transaction. Without his continued support and the financial backing of Mabert over the last year, we would not have had the opportunity to participate in this transformative acquisition.”
Mabert LLC is a Texas Limited Liability Company owned and controlled by Greenway Director and stockholder, Kevin Jones, and his wife Christine Earley. On September 14, 2018, the Company entered into a loan agreement, with Mabert acting as agent for the Company’s lenders, for the purpose of funding Greenway’s ongoing research and development, working capital and general corporate operating expenses up to $1,500,000. Please see the Company’s annual report on Form 10-K and most recent quarterly report on Form 10-Q, related exhibits and other filings for more information about the Mabert Loan Agreement.
About Greenway Technologies, Inc.
Based in Arlington, Texas, Greenway Technologies, through its wholly owned subsidiary, Greenway Innovative Energy, is engaged in the research and development of proprietary gas-to-liquids (GTL) syngas conversion systems that can be scaled to meet oil and gas field production requirements. The company’s patented technology has been realized in its recently completed first-generation commercial G-ReformerTM unit, a unique component used to convert natural gas into synthesis gas. When combined with a Fischer-Tropsch reactor and catalyst, G-Reformer units can be deployed to process a variety of natural gas streams including pipeline gas, associated gas, flared gas, vented gas, coal-bed methane and/or biomass to produce fuels including gasoline, diesel, jet fuel and methanol. When derived from natural gas, these fuels are incrementally cleaner than conventionally produced oil-based fuels.
For more information about Greenway Technologies, visit www.gwtechinc.com.
About INFRA Technology Group
Based in Houston, Texas, INFRA Technology Group is an innovation-based company, developing and commercializing advanced energy and materials technologies that aim to profoundly alter energy, materials and resource systems worldwide. INFRA has developed and patented a proprietary Gas-to-Liquids technology (INFRA.xtl), based on the Fischer-Tropsch synthesis process, for the production of light synthetic oil and clean liquid synthetic transportation fuels from natural and associated gas, as well as from biomass and other fossil fuels.
For more information about INFRA Technology Group, visit: https://en.infratechnology.com.
All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the PSLRA of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While the Company’s management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on several assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, among others, the ability of the Company to complete a joint-venture agreement with Mabert LLC, the ability to integrate the Company’s technology with the existing INFRA FT and plant technologies, the ability to produce and sell liquid fuels from such facility, the ability to receive certification of the Company’s technology, and uncertainty of obtaining any future technology licensing agreements or sales. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.
The information found in this Press Release does not and shall not constitute an offer to sell or is a solicitation of an offer to buy securities by the Company nor shall there be any sale of these securities by the Company in any state or jurisdiction based upon the information found in this Press Release. Any stock offering by Greenway shall be made only through the provision of a private placement memorandum, including the subscription documents which are a part thereof. Before making any investment, you should carefully consider your own objectives, financial situation and needs, and all statements and risk disclosures contained in any offering documents provided by the Company and in the Company’s public filings.
In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company's SEC filings. You should obtain appropriate financial advice before making any decision about whether to make any investment.
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