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CALGARY, Alberta and TORONTO, July 14, 2020 (GLOBE NEWSWIRE) -- Magnetic North Acquisition Corp. (TSXV: MNC) ("Magnetic North" or the "Company"), along with Cirque Innovations Ltd. ("Cirque"), is pleased to launch commercial operations for CXTL Recycling Canada Corp. ("CXTL"). CXTL will use Cirque's recycling technology to break down plastics into saleable products, leaving virtually no waste behind.
The foundational technology which Mr. John Blair, CEO of Cirque, first invented in 1993, uses a patent-pending nano chemical process utilizing ultra-frequencies to depolymerize and break down specific materials. Mr. Blair has iterated the technology over numerous deployments improving the technology each time.
Magnetic North has, through its investee company CXTL, been working closely with Cirque over a ten (10) month period to complete required due diligence, including a third-party report that certified the inputs (plastic waste), the technology, and the outputs (saleable products). During the past three months of demonstration operations, the machine has worked successfully on a variety of materials containing plastics and other substances.
"This is a major breakthrough in recycling technology and helps to solve a problem for municipalities across North America that are experiencing significant difficulties in recycling many types of plastic waste," said Andrew Osis, Co-CEO of Magnetic North. "The world generated over 359 million tonnes of plastic in 2018, and that number is expected to rise. Turning end-of-life plastic into useable material, and thus reducing or eliminating plastic waste, is a crucial global innovation that also provides an economic opportunity."
Magnetic North and Cirque will jointly own CXTL on a 50/50 basis. Cirque will contribute the technology and management, and Magnetic North will contribute capital, and management expertise as needed. As a result, CXTL will be the exclusive worldwide operator of the technology. Furthermore, Magnetic will acquire from Cirque, the demonstration machine for 350,000 Series A Preferred Shares and $500,000 in cash. This demonstration machine will become part of CXTL's operations.
"The world is facing considerable stockpiling issues with respect to a limited market in recyclable goods," said John Blair, CEO of Cirque, a privately held company. "CTXL's technology allows us to break down materials into source matter while maintaining the strict environmental standards required of responsible corporations today as part of the circular economy."
CXTL will commence limited commercial operations and revenue generation within the next few weeks from its current facility. Several feedstocks have been identified and formal contracts will be completed in the near term. Magnetic North, Cirque, and CXTL are currently evaluating and designing large-scale commercial facilities for operations in a number of North American municipalities.
About Magnetic North Acquisition Corp.
Magnetic North invests and manages businesses on behalf of its shareholders and believes that capital alone does not always lead to success. With offices in Calgary and Toronto, our experienced management team applies its considerable management, operations and capital markets expertise to ensure its investee companies are as successful as possible for shareholders. Magnetic North shares trade on the TSX Venture Exchange under the stock symbol MNC. For more information about Magnetic North, visit its website at www.magneticnac.com. Magnetic North's securities filings can also be accessed at www.sedar.com.
For further information, please contact:
|Graeme Dick||Kevin Spall||Andrew Osis|
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CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This news release contains "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer's business, capital, or operations that is prospective in nature, and includes future-oriented financial information about the issuer's prospective financial performance or financial position. The forward-looking information in this news release includes the increase in generation of plastic, the Company's acquisition of the demonstration machine from Cirque, the commencement of limited commercial operations and revenue generation, formal contracts with feedstock companies and the evaluation and design of large-scale commercial facilities for operations.
The Company has made certain material assumptions, including but not limited to: prevailing market conditions; general business, economic, competitive, political and social uncertainties; and the ability of the Company to execute and achieve its business objectives to develop the forward-looking information in this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include but are not limited to: adverse market conditions; reliance on key and qualified personnel; and regulatory and other risks associated with the industries in which the Company's portfolio companies operate, in general. The Company cautions that the foregoing list of material risk factors and assumptions is not exhaustive.
The Company assumes no obligation to update or revise the forward-looking information in this news release, unless it is required to do so under Canadian securities legislation.
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