The companies have agreed to establish joint venture projects in recycling waste into plastic and oil within the US and internationally.
Under the LOI, the initial project include the development of a plant in Sheboygan, Wisconsin, that is anticipated to require $5m in the form of convertible debt financing, or alternative financing that will acquire the building or equipment required for the plant.
The agreement allows 5 Stone to have a right of first offer to provide financing on subsequent GETH projects where shredder residue will be consumed.
5 Stone will also have a right to participate in any future financing of projects for shredder residue recycling for about 20% of the total financing.
5 Stone, in collaboration with GETH, will utilize GETH’s expertise to maximize governmental support and to locate future sites.
GETH chairman and CEO Gary De Laurentiis said by working with 5 Stone the company benefits from both their financing and expert knowledge of developments in the environmental field.
