Vancouver, British Columbia — Klean Industries Inc (“Klean”) is pleased to announce that its wholly-owned subsidiary Carbon Resources Recovery GmbH (“CRR”) located in Berlin, Germany has won a Final and Binding Injunction against ReOil Sp. z o.o.

The Binding Injunction Order prohibits ReOil from conducting any commercial transactions, from disclosing, offering and/or bringing to the market any of CRR’s confidential know-how and technical information on thermal treatment of used tyres by pyrolysis consisting of a device using a rotary kiln without CRR’s consent or from carrying out such actions through third parties.

The order specifically provides that ReOil shall not, through the commissioning of a consultant, find investors and at the same time inform them that ReOil has developed or owns or can license/dispose of any of CRR’s unique state-of-the-art, know-how for tyre pyrolysis or present the pyrolysis investment to investors, publish flyers or make any statement that ReOil owns that know-how or that CRR has nothing to do with such technology/know-how. Failure to comply with such order would expose ReOil to an administrative fine of up to EUR €50,000 for each case of infringement or, alternatively, the Managing Director to be detained in custody.

A Court Resolution of the first instance dated 5th September 2019 rejecting ReOil’s legal challenge against the Injunction Order. A Resolution of Notice of the Berlin court of appeal dated 30th January 2020 regarding the appeal of ReOil against the aforementioned court ruling, rejecting the arguments of ReOil in full and advising ReOil that the court of appeal intends to reject the appeal by written resolution instead of a full hearing, on the grounds that the arguments presented by ReOil had no merits and will not succeed to challenge the position of CRR as of January / February 2020 where CRR sufficiently substantiated that the construction and development of the pyrolysis plant in Bukowno was largely due to CRR’s own involvement and the technical know-how contributed by CRR and that ReOil was not permitted to present this as ReOil’s own know-how.

The legally final and binding Resolution of the second instance (Instance of Appeal) of the Berlin Court of Appeal as of 13th March 2020 (procedural no. 12 U 169/19) regarding the appeal filed by ReOil and the subsequent retraction of such appeal by ReOil on 6th March 2020, and the written confirmation of ReOil by its legal advisers dated 20th March 2020 that ReOil accepts and will adhere to the Injunction Order dated 26th February 2019, seeing such order to be final and binding upon ReOil.

As a result of the resolution of the Berlin Court of Appeal, the Court Resolution and thereby the Injunction Order dated Feb 2019 became legally final and binding with the effect that Reoil must:

• cease to disseminate, offer or distribute CRR’s know-how or enable third parties to do any of the foregoing;
• cease to declare the IP and know-how of CRR being know-how of ReOil; and
• accept that the technical and scientific know-how contributed by CRR represented the essential core of the functioning of the plant in Bukowno.

It has also come to the attention of management that ReOil Sp. z o. o has misled investors based on documents obtained by legal counsel where ReOil Sp. z o. o has raised finance using a vehicle known as Balise Springs PLC in contravention of the Court Order register and filed in Berlin.

Having reviewed a copy of the Investment Memorandum and the Term Sheet issued in connection with the creation, marketing and allotment of the Series 2019-F2 Securities, we note various statements that are inconsistent with the legal position in regards to the know-how used in ReOil’s operations and ReOil’s undertakings to CRR, namely that:

• the ReOil operations are based on a unique know-how belonging to ReOil which give ReOil a stand-alone position regarding the specifically utilized technology and that this know-how is essential for its operations and the economic success of the ReOil operations;
• ReOil being the sole owner of all IP and know-how used for the business further described in the documents referred to above; and
• ReOil being able to redeem a price of at least EUR €580/t Carbon Black with the rCB products produced in its business operations.

The statements above are not in line with the court resolution, declarations, acceptances and agreements referred to above.

The legal representatives of CRR in London have already made formal contact with the capital market players involved on the consequences of these false claims for the debt securities placed and the financing granted. At the same time, CRR is taking or preparing further legal steps against ReOil in Germany, Poland, England, Ireland, and the USA with regard to the breach of the ruling of the Berlin Regional Court and the overdue repayment of loans by ReOil.

Klean and CRR will pursue their legitimate interests by all legal means available in any country in the world and with respect to any party involved in any violation of rights. To the extent necessary to prevent violations of Klean / CRR’s know-how rights, this includes action against the construction and operation of facilities by ReOil in the area of scrap tire pyrolysis and action against any third party who, knowing the facts, assists ReOil in the violation of Klean / CRR know-how and who participates in or provides legally relevant assistance to ReOil.

Joachim Stehnkuhl, CRR’s Managing Director commented, “The theft of know-how and investment fraud are two major international problems. The management and the shareholders of Klean and CRR are fully committed to protecting their rights by all means and to prosecute anyone who behaves illegally, both under international civil and criminal law.

About Klean Industries

Klean Industries (“Klean”) provides best-in-class technologies and solutions in the waste-to-value industry. Our international team of award-winning experts have decades of experience in the design, engineering, and manufacturing of the highest quality equipment to convert waste streams into valuable energy and resources. Our unique products and services are a result of combined know-how in the design of recycling, resource recovery, waste management, and power generation projects. Our global project management expertise safeguards timelines and budgets enabling projects to be delivered in less time and at lower costs.

Klean uses proprietary technologies to rapidly develop projects that produce the highest quality fuels, recovered Carbon Blacks (“rCB”), and green hydrogen from various kinds of feedstocks. Our knowledge and skillfulness provide a specialization in building projects that use advanced thermal technologies such as pyrolysis, gasification, and carbonization, which convert end-of-life tyres, waste plastics, and municipal solid waste into domestic energy, sustainable commodities, and new cleantech jobs. We create a symbiosis between waste, resources, and energy. Klean Industries is the link between the low carbon, circular economy, and the goal of zero waste to landfill.

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