(AMES, IA)—Renewable Energy Group’s (NASDAQ: REGI) Board of Directors yesterday authorized a review of strategic alternatives for its Life Sciences subsidiary, which is developing renewable chemicals and fuels using a proprietary microbial fermentation process. The strategic review process will be comprehensive and focused on the best path to maximize shareholder value.
Over the last three years under REG ownership, the Life Sciences subsidiary has advanced its technology, increased the number of potential products that can be made from the technology and expanded its intellectual property portfolio.
“REG Life Sciences recently announced its first commercial product,” said Daniel J. Oh, REG’s President and Chief Executive Officer. “We believe now is the right time to review strategic alternatives for Life Sciences in order to generate value from this investment. The REG Board of Directors and management are committed to delivering value for our shareholders, and today's announcement underscores our stated objective to optimize our portfolio.”
There can be no assurance that the strategic review will result in any specific action or transaction. REG does not intend to provide updates concerning this strategic review process until its Board of Directors has approved a specific action or REG has otherwise determined that further disclosure is appropriate.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading provider of cleaner, lower carbon intensity products and services and is North America’s largest producer of biomass-based diesel. REG utilizes a nationwide production, distribution and logistics system as part of an integrated value chain model to focus on converting natural fats, oils and greases into advanced biofuels and converting diverse feedstocks into renewable chemicals. With 12 active biorefineries across the country, research and development capabilities and a diverse and growing intellectual property portfolio, REG is committed to being a long-term leader in bio-based fuels and chemicals.
For more than a decade, REG has been a reliable supplier of advanced biofuels which meet or exceed ASTM quality specifications. REG sells REG-9000 biomass-based diesel to distributors so consumers can have cleaner burning fuels that help diversify the energy complex and increase energy security. REG-9000 biomass-based diesel is distributed in most states in the US. REG also markets ultra-low sulfur diesel and heating oil in the northeastern and midwestern US. For more information on REG visit our website at www.regi.com.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the REG’s review of strategic alternatives for its Life Sciences subsidiary with a view to benefiting shareholders. These forward-looking statements are based on current expectations and assumptions, are subject to change, and actual results may differ materially. Factors that could cause actual results to differ materially include that REG’s strategic review may not result in any specific action or transaction, that any strategic alternative pursued by REG may not result in an increase in shareholder value and other risks and uncertainties described from time to time in REG's annual report on Form 10-K for the year ended December 31, 2015, quarterly reports on Form 10-Q and other periodic filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release and REG does not undertake to update any forward-looking statements based on new developments or changes in our expectations.