K.B. Recycling Industries Ltd. (Alkemy) completes IPO and aggregate financings of $11.4 million

April 21, 2021

On April 21, 2021, K.B. Recycling Industries Ltd., conducting business as Alkemy (“Alkemy”), announced the closing of its initial public offering (the “Offering”) of 6,282,984 units (the “Units”) at a price of C$0.29 per Unit, for total gross proceeds of approximately C$1,822,065, including the exercise in full of the Underwriters’ (as defined below) over-allotment option. Concurrently with the Offering, the Company has issued 14,358,545 Class A units (the “Class A Units”) at a price of C$0.58 per Class A Unit for aggregate gross proceeds of approximately C$8,327,956 to specified investors resident in Israel by way of private placement (the “Private Placement of Class A Units”). The Company has also issued 4,334,862 subscription receipts (the “Subscription Receipts”) by way of private placement to certain Canadian accredited investors (the “Private Placement of Subscription Receipts”). The Subscription Receipts were issued at a price of C$0.29 per Subscription Receipt for aggregate net proceeds of approximately C$1,256,095. Upon closing of the Offering, each Subscription Receipt converted into one Unit.

Alkemy raised an aggregate of approximately C$11.4 million from the Offering, the Private Placement of Class A Units and the Private Placement of Subscription Receipts. The Offering was co-led by INFOR Financial Inc. and Cormark Securities Inc. as joint bookrunners (the “Underwriters”).

Alkemy is a leading environmental technology company based in Israel. Alkemy has developed a unique plastic recycling process to recycle plastic bags and sheets traditionally not considered economically viable for recycling and as such have become one of the largest plastic pollutants in the world.

Miller Thomson advised Alkemy on all three transactions with a team led by Lawrence Wilder (Capital Markets & Securities), and comprised of Pierre Soulard, Abid Ahmed and Brandon Meyer (Capital Markets & Securities), Manjit Singh (Corporate Tax), and Sarah DeGenova and Joshua Rim (Articling Students).

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