Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Rentech(RTK) - gas-to-liquids and cleaner fuel -- Ignore unavailable to you. Want to Upgrade?

To: melinda abplanalp who wrote (13659)	3/21/2000 9:08:00 PM
From: Bradpalm1	Respond to of 14347

An excellent piece from the Denver Post. I especially liked the last paragraph. Imagine what will happen when Texaco publicly announces the launching of their refinery bottom initiative with RNTK's GTL technology converting gasified bottoms into useful FT products! Also, Texaco's 10-K is due out very soon. Should be a very interesting couple weeks ahead. Anschutz to fuel energy firm By Steve Raabe Denver Post Business Writer Mar. 21 - Denver energy firm Rentech Inc. will get a major capital infusion in a stock sale to companies closely linked to Denver billionaire Philip Anschutz. Rentech, developer of a process to convert natural gas to liquid fuels, signed a deal to sell as many as 8 million of its shares for $16.2 million to Anschutz Investment Co. and Forest Oil Corp. In addition, Rentech said it has a preliminary agreement to bring Texaco Energy Systems in as a partner for the first gas-to-liquids plant to be built in the United States in the last 40 years. Texaco has an option to purchase one-half of Rentech's 50 percent interest in the Sand Creek methanol plant in Commerce City. Rentech plans to convert the facility from methanol production to gas-to-liquids, using Rentech's proprietary Fischer-Tropsch process to convert natural gas to cleanburning diesel, naphtha, petroleum waxes and other products. "Texaco's potential involvement in the development of the Sand Creek project would add invaluable assistance in helping to achieve the project's full poten tial," said Dennis Yakobson, chairman, president and chief executive officer of Rentech. In the stock sale, Rentech initially will sell 1 million shares each to Anschutz Investment and Forest Oil for 60 cents per share. The two buyers then have options to acquire an additional 2 million shares each for $1.25 a share, and 1 million more apiece for $5 per share. If the options are exercised, Ren tech will end up selling a total of 8 million shares at a weighted average price of $2.03 a share. Anschutz and Forest Oil then would own a total of 11 percent of the company's shares, making them the largest owners of Rentech. Anschutz Investment Co. is controlled by Philip Anschutz. The Denver investor also is the largest owner of Forest Oil, with a 37 percent stake worth $178 million in the energy exploration company. "We're tickled pink," Yakobson said of the investment by Anschutz and Forest Oil. "The Anschutz company has a sterling reputation on the ability to pick excellent investment opportunities." Yakobson said proceeds from the stock sale will be used for what he described as "general purposes." Rentech's share price had languished below $1 for much of the past four years, until Feb. 10, when Texaco officials in an analysts' conference call mentioned the Denver company and its gas-to-liquids process. The stock almost doubled overnight. Rentech shares closed Monday at $2.56, down 19 cents. Copyright 2000 The Denver Post. All rights reserved.