Meridian assists in $4.5 million SaskAlta financing
(Calgary, Alberta) Meridian Merchant Capital Canada announced today that it has been engaged to provide ongoing financial advisory services to an exciting new Saskatchewan venture in the re-refining industry. A key component of the new relationship was Meridian’s assistance in raising $4.5 million in start-up equity, partially through Meridian’s affiliated Trinity Capital Canada LP.
SaskAlta Base Oils Corporation (SaskAlta) is engaged in maximizing opportunities associated with the recovery and re refining of hydrocarbon resources derived from used oil feedstock.
The newly formed company acquired a used oil treating plant in Humboldt, Saskatchewan, which is being upgraded and is scheduled to commence operations in Q2 2007. The plant will produce a suite of products destined for industrial customers in Saskatchewan and elsewhere.
Co-Chairs of the Saskalta board are Stan Owerko, Chairman of Meridian, along with Brad Munro, Vice-President, Growthworks (Saskatoon) and Lead Director of publicly traded CCS Income Trust. Keith Turner, Managing Director of Meridian, will also serve on the Board of Directors.
“Management is intending to upgrade an existing facility and thereby significantly reduce start-up capital costs,” said Turner. “This factor, combined with the strong demand in western Canada for the finished base oil product has all of us at Meridian/Trinity excited about the opportunity.”
In addition to helping to raise the start-up capital, Meridian has built an ongoing relationship with SaskAlta including providing the services of an experienced CFO, David Koplovich, to help guide the company through its ambitious start-up phase. Meridian will also provide ongoing, monthly, financial services to SaskAlta including M&A, corporate finance planning, and capital raising.