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CHARLOTTE -- NewGen Technologies, Inc. -- parent company to petroleum distributor and 56-location c-store operator Appalachian Oil Co. Inc. (APPCO) -- has finalized a strategic agreement with Titan Global Holdings that will see 100 percent of APPCO's outstanding stock purchased by the newly-formed Titan Energy Group.
As part of the agreement, Titan Energy has entered a 10-year supply agreement with Refuel America Inc., a wholly-owned subsidiary of NewGen, giving Titan the exclusive right to supply biofuel products to APPCO and its affiliates.
"NewGen is now strategically positioned to be the leader in biofuel supply and distribution from terminals to retail under one umbrella in the southeastern United States," NewGen chairman Bruce Wunner said in a statement. "The agreement will provide us with the exclusive right to supply biofuels to APPCO, which was a synergy we coveted when we initially bid for APPCO. We believe that this strategic relationship with Titan and APPCO benefit NewGen, ReFuel and our shareholders."
Other details of the agreement include:
-- In exchange for NewGen's cooperation with Titan's efforts to purchase APPCO, Titan will pay NewGen $1.3 million in reimbursements for good-faith deposits previously paid by NewGen to APPCO, and other related professional fees and expenses NewGen incurred.
-- NewGen will receive $600,000 annually under a consulting agreement to provide advice on strategic and operational business matters related to biofuels and related strategic areas.
The agreement is expected to close on Sept. 4.