Klean Files Lawsuit Against ReKlaim Inc, Pyrolyx’s AG Joint Venture Partner, for Failing to Pay its Property Taxes

Vancouver, Canada – Klean Industries Inc (“Klean”) is advising its shareholders that it has filed suit against ReKlaim Inc.(“ReKlaim”) in the Circuit Court of Morrow County, Oregon, asserting claims for breach of contract, breach of the covenant of good faith and fair dealing, fraud, and fraudulent concealment. In the lawsuit, Klean seeks a minimum of $153,867.46 in damages. ReKlaim was recently served with the summons and a copy of the formal complaint. The lawsuit stems from Klean’s purchase of ReKlaim’s assets in a failed tire pyrolysis technology venture located in Boardman, Oregon, and ReKlaim’s failure to satisfy certain property tax liabilities associated with that facility.

In February of 2018, Klean purchased only ReKlaim’s assets at the shuttered pyrolysis facility, leaving ReKlaim to satisfy any and all remaining liabilities including all associated taxes. ReKlaim, however, failed to use the proceeds from the sale of the facility to pay the outstanding property taxes it owed to the State of Oregon and Morrow County.

Upon learning of the delinquent taxes, Klean contacted ReKlaim and Tom Redd, ReKlaim’s CEO at the time, to ensure the delinquent taxes would be addressed and paid promptly. ReKlaim and Mr. Redd assured Klean that the delinquent taxes would be addressed promptly. To date, however, ReKlaim has failed to satisfy the delinquent taxes owed to the State of Oregon and Morrow County. As a result, Klean was forced to file suit against ReKlaim.   

Jesse Klinkhamer, Klean’s CEO commented “ReKlaim’s non-performance with respect to the delinquent taxes that were assessed when ReKlaim owned the facility is now causing issues for Klean. I find this entire situation disheartening.” Mr. Klinkhamer went on to discuss the current business climate, commenting that “In my opinion, the culture of corporations and their executives behaving badly seems to be endemic in business these days. I find it shocking that some businesses, their owners, and executives seem to be able to stay in business and move on to other projects despite often engaging in behavior that, in my opinion, is risky and dangerous for their shareholders and investors. How anyone can continue to do business with such companies is hard to believe.”

Klean will update their shareholders as this case enters the Oregon court process in due course.

About Klean

Klean Industries comprises an international team of award-winning experts with decades of experience in the design, manufacturing, and deployment of alternative energy solutions, including clean power production, waste management, recycling, and resource recovery. Klean uses proven technologies to rapidly develop projects that produce the highest quality fuels, recovered Carbon Blacks (“rCB”), and green energy from various kinds of carbon-based wastes. Klean specializes in building projects that use thermal technologies such as gasification, pyrolysis, and carbonization, which convert scrap tires, waste plastics, and municipal solid waste into domestic energy, sustainable green commodities, and new cleantech jobs.

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Klean Industries Inc.
Suite 2500 - 700 W. Georgia St.,
Vancouver, BC,
Canada, V7Y1B3
(T) +1.604.637.9609
(T) +1.866.302.5928
(F) +1.604.637.9609

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