Comstock Records Significant Gains From Completion of Major Asset Sales
September 14 2023 - 06:00AM
GlobeNewswire Inc.
Comstock Inc. (NYSE: LODE) (“Comstock” and the “Company”), an innovator of technologies that enable systemic decarbonization and the energy transition by efficiently converting under-utilized natural resources into renewable energy products, today announced the successful completion of multiple asset sales, resulting in strong gains and advances of the Company’s objectives.
Investment in ABTC and the Battery Recycling Facility
The Company previously announced the sale of its Battery Recycling Facility and LINICO’s sale of certain related equipment (collectively, the “Facility”) to American Battery Technology Company (“ABTC”), for a net price of $27 million. This week, the Company completed the sales of its 9,076,923 ABTC common shares for proceeds of approximately $5.5 million, resulting in total cash proceeds of $26.5 million, net cash proceeds of $14.5 million, and a realized gain on the sale of these assets of over $7 million that will be reflected in the Company’s statement of operations in third quarter of 2023. ABTC is required to make a final payment of $0.5 million in cash, during the fourth quarter of 2023, associated with the purchase and sale agreements.
“This represents the culmination of a major asset sale objective, bringing in over $15 million in net cash proceeds during 2023, and recording a $7+ million realized gain on the sales,” stated Mr. Corrado De Gasperis, Comstock’s executive chairman and chief executive officer. “We look forward to putting this capital to very productive use in our other lines of business, including our new photovoltaic recycling facility located in Silver Springs, Nevada.”
Investment in Green Li-Ion
The Company’s 88% owned LINICO subsidiary also consummated the sale of 1,500 preferred shares, or 4%, of its 37,162 Green Li-ion Pte. Ltd. (“Green Li-ion”) shares for gross sales proceeds of $0.8 million, and a realized gain on the sale of approximately $0.6 million, and effectively valuing the remaining 35,662 shares at about $19 million.
“We originally invested $2 million in Green Li-Ion in 2021 and have watched them progress and position their technology readiness into one of the world’s first remanufacturers of spent Lithium-ion batteries into pre cursor cathode active materials,” continued Mr. Corrado De Gasperis. “They have always been and continue to be a top tier strategic technology and business partner and we very much look forward to their continued success.”
About Comstock
Comstock (NYSE: LODE) commercializes innovative technologies that contribute to global decarbonization by efficiently converting under-utilized natural resources, primarily, woody biomass into net zero renewable fuels, end of life metal extraction, and generative AI-enabled advanced materials synthesis and mineral discovery.
To learn more, please visit www.comstock.inc.
