SusGlobal Signs Agreement to Purchase 40,000 Square Foot Facility with 65,000 Metric Tonne Annual Capacity and Existing Environmental Compliance Approvals in Hamilton, Ontario

Rhea-AI Summary

SusGlobal Energy Corp. (OTCQB:SNRG) has announced the purchase of a 40,535 square foot facility in Hamilton, Ontario, with an Environmental Compliance Approval allowing the processing of 65,884 metric tonnes of organic waste annually. The facility will cost approximately US$3.73 million, with a deposit of US$165,680 already paid. This acquisition aims to enhance production and distribution of the company's SusGro™ organic fertilizer products while providing increased capacity for revenue generation through fertilizer sales and municipal waste intake fees.

Positive

• Acquisition of a facility with a capacity to produce about $2 million worth of organic fertilizer daily.
• Environmental Compliance Approval to process over 65,000 metric tonnes of organic waste annually.
• Strategically located facility enhances commercialization and distribution capabilities.

Negative

• Total purchase price of $3.73 million may exert financial strain.
• Dependence on municipal waste intake fees poses risks if municipal contracts are not maintained.

Capacity to produce approximately $2 million worth of organic fertilizer daily

TORONTO, ON / ACCESSWIRE / June 2, 2021 / SusGlobal Energy Corp. ("SusGlobal") or (the "Company") (OTCQB:SNRG), the developer of SusGro™, a revolutionary pathogen-free organic liquid fertilizer, today announced that its wholly-owned subsidiary, SusGlobal Energy Canada I Ltd. ("SusGlobal Canada I"), signed an Agreement of Purchase and Sale dated February 10, 2021 (the "Purchase Agreement") to purchase a 40,535 square foot facility on 3.26 Acres (the "Property") located at 520 Nash Road North, in Hamilton, Ontario, which includes an Environmental Compliance Approval to process 65,884 metric tonnes per annum of organic waste, 24 hours per day 7 days a week.

As per the terms of the Purchase Agreement, SusGlobal Canada I provided an initial deposit of US$165,680 (CA$$200,000) and conducted both a Phase I and a Phase II Environmental Site Assessment. The parties signed a waiver of all due diligence and the Company advanced a further US$124,260 (CA$150,000) on June 1, 2021, towards the purchase price of US$3,727,800 (CA$4,500,000). Of the purchase price US$1,781,060 (CA$2,150,000) will be paid in cash and US$1,656,800 (CA$2,000,000) will be paid in the form of a take-back mortgage granted in favour of the seller on closing June 16, 2021.

The facility will produce, distribute and warehouse the Company's SusGro™ and other organic liquid fertilizer products that are provided under private label and sold through big box retailers, consumer lawn and garden suppliers, and for end use to the wine, cannabis and agriculture industries. With the addition of a further 10,000 square feet of R&D labs and office space, the Hamilton facility will also house the continued development of SusGlobal's proprietary formulations and branded liquid and dry organic fertilizers.

"We are pleased to have purchased an additional facility with a high-value Environmental Compliance Approval and strategically located to provide a contingency plan to our municipal clients that are already using our Bellville facility where we intake organic waste. Equally important is the Hamilton facility's proximity to agricultural clients who purchase our outbound products including liquid and dry organic fertilizers. This acquisition exponentially increases SusGlobal's capacity for commercialization and distribution of our proprietary products, enabling us to ramp revenues and cash flows through fertilizer sales, tipping fees for intaking municipal organic waste, and carbon credits as Leaders in The Circular Economy®," stated Marc Hazout, President and CEO of SusGlobal.

About SusGlobal Energy Corp.
SusGlobal Energy Corp., the developer of SusGro™, a revolutionary pathogen-free organic liquid fertilizer is a renewables company focused on acquiring, developing and monetizing a portfolio of proprietary technologies in the waste to energy and regenerative products applications globally. It is management's objective to grow SusGlobal into a significant sustainable waste to energy and regenerative products provider, as Leaders in The Circular Economy®. For more information, please visit the Company's website at: www.susglobalenergy.com

Safe Harbor Statement
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's objectives. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, lack of sufficient financial resources; variations in market conditions, currency and our stock; the Company's ability to obtain any necessary permits, approvals, consents or authorizations required for its activities; the Company's ability to produce energy, biogas, compost or organic fertilizer from its properties successfully or profitably, to continue its projected growth, or to be fully able to implement its business strategies and other risk factors described in the Company's filings with the U.S. Securities and Exchange Commission, which may be viewed at www.sec.gov.

Contact
SusGlobal Energy Corp.
Marc Hazout, President and CEO
(416) 223-8500 or Toll Free: 1-866-512-7374
Email: info@susglobalenergy.com

Investor Relations Contact
Lytham Partners, LLC
Ben Shamsian
New York | Phoenix
(646) 829-9701
Email: shamsian@lythampartners.com

SOURCE: SusGlobal Energy Corp.

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FAQ

What is the significance of SusGlobal Energy's new facility in Hamilton, Ontario?

The new facility will increase SusGlobal Energy's capacity to produce organic fertilizers, generating potential revenues from fertilizer sales and municipal waste intake.

How much was SusGlobal Energy's purchase price for the new facility?

The purchase price for the Hamilton facility is approximately $3.73 million.

What are the expected benefits of the Hamilton facility for SusGlobal Energy?

The facility will enhance production capacity, enable the development of new fertilizer formulations, and support increased revenue from tipping fees and product sales.

What is the annual organic waste processing capacity of the new facility?

The facility can process 65,884 metric tonnes of organic waste per year.