Anaergia divests two bioenergy facilities, cuts C$20M in debt

Anaergia Inc. (TSX: ANRG; OTCQX: ANRGF) has entered into a definitive Master Purchase Agreement with IIF Anaergia HoldCo, LLC ("North Sky") to divest two bioenergy facilities, according to a company statement.

Under the agreement, the buyer has acquired the assets of the Charlotte Bioenergy Facility in Charlotte, North Carolina, and 100% interests in the Rhode Island Bioenergy Facility in Johnston, Rhode Island.

The transaction removes approximately C$20 million of project-level debt from Anaergia's balance sheet. In exchange, Anaergia received approximately C$9 million of equity in the buyer, described as a privately held company. The transaction is expected to result in a non-cash gain on sale.

Anaergia noted that the Charlotte facility had not been operating, while the Rhode Island facility had been running below expected capacity. The company characterized both as non-core assets.

"This definitive agreement is a meaningful step in Anaergia's transformation," said Assaf Onn, Chief Executive Officer of Anaergia. "It addresses two non-core facilities, is expected to reduce project-level debt and improve our earnings profile."

Anaergia is based in Carlsbad, California, and Burlington, Ontario, and focuses on converting organic waste into renewable natural gas, fertilizer, and clean water.

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