Calash is pleased to announce that it has provided technical and commercial due diligence in relation to the merger of UK-based environmental technology company Arq and Advances Emissions Solutions (ADES), a NASDAQ-listed holding entity for a group of companies that provide emissions solutions to customers in the power generation and other industries.
The merger will allow ADES shareholders to receive up to USD 10m of cash proceeds, at a price of USD 0.52 per share, and to retain between 47.4% and 49.5% of the outstanding shares of the combined company, based upon 100% equity elections by ADES investors. Alongside the merger, there will be a committed equity placement of USD 20m from current Arq investors and members of Arq management. The combined entity is projected to generate annual revenue of USD 196m, and USD 61m of EBITDA, by 2026.
The transaction remains subject to customary approvals, including the filing of a prospectus with the SEC, ADES shareholder approval, and UK court approval of Arq’s scheme of arrangement.
Calash has provided detailed technical and commercial due diligence for several incoming investors into Arq over a number of recent years. It has also worked closely with the Arq management team on a consulting basis to support its growth and capital strategy.
The Calash team included George Maitland, James Kirby, and Callum Evett.
“Calash has supported Arq and its investors several times over the past two years through technical and commercial due diligence. The Calash team has shown great ability to understand and validate Arq’s technology, and has provided vital support as we grow the business.”
Julian McIntyre, Arq CEO & Founder
Arq is a privately owned, environmental technology company founded in 2015 that has developed a novel process for producing speciality carbon products from coal mining waste. Arq has the technology and large-scale manufacturing facilities to produce a micro-fine hydrocarbon powder, Arq powder, that can be used as a feedstock to produce activated carbon. Arq powder can also be used as a blending additive for both the Carbon Black and Asphalt markets. When blended with residual fuel oil for marine transportation or utility fuels for energy generation, Arq powder provides both a lower cost and an improved environmental footprint. Arq’s products are patent protected with a family of over 70 patents and applications.
Advanced Emissions Solutions (ADES) is a leading provider of emissions control solutions for coal-fired power generation, industrial and municipal water purification markets. Its group of companies includes ADA Carbon Solutions, a provider of powder-activated carbon (PAC) and ADA-ES, the owner of the ADA M-Prove Technology. Other companies in the holding include CarbPure Technologies, which provides high-quality PAC and granular activated carbon ideally suited for the treatment of potable water and wastewater, and its affiliated company, ADA Carbon Solutions, which manufacturers products for CarbPure.
