December 27, 2023. Anaergia Inc., a global renewable fuels leader, announces the entry into a definitive agreement for a sale of US$15.6 million of Inflation Reduction Act (IRA) investment tax credits (the ITC Transaction) generated by its subsidiary, Rhode Island Bioenergy Facility Holdco, LLC (RIBH). The investment tax credits for qualified biogas property were generated from the project built by RIBH’s subsidiary in Johnston, Rhode Island.
The ITC Transaction is anticipated to close by January 29, 2024, and is subject to certain customary conditions. Proceeds will be used for transaction fees, funding of asset-level working capital and debt reserves, and limited distributions to RIBF members.
Akin Gump Strauss Hauer & Field LLP and Virentis Advisors, LLC are advising RIBH in connection with the ITC Transaction.
Additionally, the Company announces that it and Marny Investissement SA continue to work towards satisfying certain interim conditions in respect to the previously announced equity investment of C$40.8 million (the Strategic Investment). While initially expected for satisfaction on December 22, 2023, the interim conditions are required to be satisfied or waived pursuant to the subscription agreement by no later than December 29, 2023. Under the terms of the Strategic Investment, the transaction will close in three tranches of 34,000,000 units of the Company for gross proceeds of C$13.6M each. The first, second and third tranches may close no later than January 15, 2024, February 15, 2024, and March 15, 2024, respectively. The closing of the first, second and third tranches are subject to a limited number of customary conditions.