Greenman makes its intentions known.

GreenMan Technologies Inc., Lynnfield, Mass., has executed a letter of intent containing an exclusive option to acquire certain operating assets of Winston-Salem, N.C.-based Tires Into Recycled Energy and Supplies Inc. (TIRES Inc.).

TIRES Inc. is a crumb rubber producer with nearly 60 million pounds of yearly production capacity.

GreenMan can exercise the purchase option during the next 12 to 21 months if TIRES Inc. meets certain predetermined performance criteria.

In return for the exclusive purchase option, GreenMan says it has issued $200,000 of common stock to be applied toward the purchase price if the acquisition is successfully closed or to be forfeited if the company doesn't exercise the option.

GreenMan has also agreed to lease certain pieces of processing equipment owned by TIRES Inc. with an option to buy. The parties have agreed to use a previously issued $350,000 good-faith deposit to prepare and to move the leased equipment to GeenMan's Tennessee plant.

Additionally, GreenMan has executed a multi-year agreement to supply TIRES Inc. with rubber feedstock from its Georgia and Tennessee plants.

"This relationship allows us to immediately leverage each of our strengths with the potential for strong accretive performance by joining our two companies in a more permanent basis in the near future," Bob Davis, GreenMan president and CEO, says.