GreenMan Technologies, Lynnfield, MA, a recycler of over 30 million scrap tires per year in the U.S., has executed a letter of intent containing an exclusive option to acquire certain operating assets of Tires Into Recycled Energy and Supplies (TIRES).

GreenMan Technologies, Lynnfield, MA, a recycler of over 30 million scrap tires per year in the U.S., has executed a letter of intent containing an exclusive option to acquire certain operating assets of Tires Into Recycled Energy and Supplies (TIRES). The exclusive purchase option is exercisable during the next 15 to 24 months if certain predetermined financial performance criteria are met by TIRES. In return for the exclusive purchase option, GreenMan issued $200,000 of common stock which will be applied towards the purchase price of the assets if the acquisition is successfully closed, or forfeited if the option is not exercised. The formulated purchase price cannot be determined at this time. In addition, GreenMan has agreed to lease, with an option to buy, certain pieces of tire processing equipment owned by TIRES, and has executed a multi-year agreement to supply to TIRES rubber feedstock material from GreenMan's Georgia and Tennessee plants. In addition, the parties have agreed to use a previously issued $350,000 good faith deposit to prepare and move the leased equipment for use. TIRES is a crumb rubber producer with capacity approaching 60 million pounds per year.