Hello and welcome to Virtual Investor Conferences. On behalf of OTC Markets, we are very pleased you have joined us for our OTC QB Venture Conference. Our next live presentation is from ReGen III. Please note, you may submit questions for the presenter in the box to the left of the slides. You can also view a company's availability for a one-on-one meeting by clicking "Book a Meeting" in the top toolbar. At this point, I'm very pleased to welcome Tony Weatherill, Chief Executive Officer and President of ReGen III, which trades on the OTC QB Venture Market under the symbol ISRJF and on the TSXV under the symbol GIII. Welcome, Tony.
Thank you, Greg. Hello everybody. I'm Tony Weatherill, CEO and President of ReGen III, and I'm very excited to have the opportunity to speak with you all today. Before getting into the bulk of the presentation, I'd kindly direct your attention to our forward-looking statements. Now that we have that done, I'd like to get into the presentation. Who are ReGen III? We are a clean tech company redefining how the world thinks about lubricating base oils. At the heart of our business is a game-changing proposition, transforming used motor oil into premium Group 2+ and Group III base oils, products that command high value in a growing, supply-constrained global market. Our proprietary, patented process has been pilot-tested, proven, and is backed by vendor guarantees. We are now scaling up. This isn't theory; it's execution. Group III base oils are the gold standard in performance lubricants.
Demand is rising fast, yet the supply remains limited and heavily reliant on imports. That's where we come in. Our process enables us to produce Group III base oils at significantly lower costs than virgin oil producers. Feedstock and processing costs are lower, and the unit economics are exceptional. Simply put, we deliver a premium product with a superior margin at a lower cost. We're first to market with this level of efficiency and yield. That gives us a durable, sustainable competitive edge and positions us as a breakout opportunity in a multi-billion dollar sector ripe for disruption. This is a scalable platform. It can be deployed globally, either as greenfield developments or retrofits to existing brownfield facilities.
Our long-term vision is bold but achievable: to become the world's largest producer of sustainable, re-refined Group III base oils, and in doing so, we'll help meet a critical market need while driving substantial returns for our investors. This is not just a clean tech solution; it's a high-margin, high-growth business model with global relevance, environmental impact, and compelling economics. What exactly do we do? They say that a picture paints a thousand words. First, let me start with a question. What if I told you we could take this used motor oil, it's thick and it's black, and turn it into this, a crystal clear fluid so pure it looks like a glass of water that I'm holding right now? That's exactly what we do at ReGen III.
Using our patented process, we transform used motor oil, which most people would consider hazardous waste and which is potentially carcinogenic, into premium, synthetic-grade Group III base oils, the critical component in the world's highest-performing lubricants. These are the same base oils used in premium global brands like Valvoline, Mobil One, and Castrol, to name a few. These products are trusted by OEMs and consumers across the globe to power modern engines, turbines, and high-quality industrial lubricants. What sets us apart isn't just the quality; it's the model. Traditional producers rely on crude oil. We use post-consumer waste. Their costs are high. Ours are low. Their process is linear. Ours is circular. Group III base oils command premium prices, but our feedstock and processing costs are significantly lower than virgin oil producers. That gives us exceptional margins and a sustainable cost advantage in a supply-constrained market.
Our value proposition is very simple: take a waste product, apply a proven process, deliver a premium, in-demand product at a lower cost with a greener footprint. This is where environmental impact meets economic upside, and that is ReGen III. We're turning waste into wealth, and we're inviting the right partners to join us. Perhaps a little bit about myself now and indeed our team. I've spent over 35 years in the oil and petrochemical industry. Over those three and a half decades, I've worked in almost every role imaginable: engineering, technical, operations, R&D, sales and marketing, refining, and executive leadership. I've worked with or partnered with nearly every oil and energy supermajor, as well as many of the world's leading lubricant blenders and suppliers. I'm originally from the U.K., as you may tell from the accent, but for the last 11 years, Canada has been home.
Most recently, and more pertinently, I served as President of Petro-Canada Lubricants and Senior Vice President Commercial at HF Sinclair, a global enterprise with more than 1,400 employees and over $4 billion in annual revenue. When I say I know base oils and the lubricant market, I truly mean it. This industry runs deep in my blood, and in a literal sense, it's the lifeblood of our society. From transportation and logistics to food processing to pharmaceuticals to construction, base oils are the common denominator behind modern life. Over the course of my career, I've had the privilege to work around the world and to meet some incredible people, including Formula One and IndyCar drivers, hence the motorsport paraphernalia that is behind me right now. More importantly, I've seen the full arc of how this industry works and indeed where it's headed. That's exactly why I joined ReGen III.
I joined because I believe, without any hesitation, that our technology works. I've seen the data. I've seen the product. I've talked to the market. What we're producing is not just high-performing; it's filling a critical gap in the supply of low-carbon, high-quality Group III base oils. We have 32 global patents protecting our proprietary ReGen III process. That IP gives us a defensible, differentiated position in a space that's demanding change. Now my role simply is to accelerate our speed to market. In the last three months alone, we've significantly ramped up discussions with major oil companies, global blenders, additive suppliers, and some of the world's largest trading houses, not just for off-take agreements but for strategic partnerships.
There's a real sense of urgency in the market, and it's because the industry knows what we already believe: that ReGen III is offering the right products at the right time with the right economics. We're building something real, something valuable, and something scalable. We have an exceptional, handpicked, talented team steeped in industry knowledge and expertise that is poised to deliver and execute. What are base oils exactly? Indeed, why are they so critical? Why should we care? Before we dive deeper into the opportunity in front of us, it's important to take a step back and perhaps understand the product at the heart of it all: base oils. Base oils are the foundation of nearly all lubricants. They're the primary ingredient in everything, from the oil in your car engine to the fluids used in industrial turbines and manufacturing. There are three main categories.
Group I, the oldest and least refined: these are typically used in low-performance applications like greases or lawnmower oils. Group II, which is a step up in quality, commonly used in older passenger and commercial vehicles: they're the workhorse of the market, but increasingly they're being phased out in favor of more advanced solutions. Then there's Group III, the premium grade. This is what goes into modern cars, high-performance engines, wind turbines, and sophisticated industrial equipment. Here's where the market is headed. Across the globe, the demand for Group III base oils is rising sharply. Automakers, equipment manufacturers, and regulators are all pushing towards more efficient, lower emission, high-performance systems, and Group III base oil is the key enabler. It is no surprise then that Group III base oils command a 40% - 50% price premium over Group II and indeed Group I. That's the segment we're focused on.
That's where the real opportunity lies. We'll dive deeper into how ReGen III delivers in this space in just a moment. For now, remember this: Group III is not just a higher-quality product. It's a higher-margin market with global tailwinds and growing unmet demand. ReGen III is positioned right at the center of it. Let's take a look at the critical market problems. To truly understand the opportunity ReGen III is addressing, we need to look at the three critical problems facing the base oil and lubricant sector today. The first is supply chain imbalance. There's a growing global demand for Group III base oils, but production remains uneven and highly concentrated. Most countries don't make enough to meet their needs. In fact, here in North America, the U.S. produces just 13% of its own Group III supply.
As a result, Group III base oils must be imported into the U.S., but also into Europe, Latin America, Africa, and beyond. This leads to higher costs, greater volatility, and increasing environmental and geopolitical risk, especially as global supply chains are stretched. The second issue is environmental damage, starting with what happens to used motor oil. Today, the vast majority of used motor oil is either burned, dumped, or downgraded into fuels, causing significant emissions and environmental harm. Yet the industry knows this isn't sustainable. In fact, 2/3 of major lubricant companies have now made public commitments to reduce emissions or reach net zero. More blenders and oil marketers are actively seeking re-refined Group III base oils to reduce their cradle-to-grade carbon footprint and align with ESG mandates. The third problem is technology. Historically, re-refining hasn't been able to produce base oils that meet the high-performance demands of modern engines.
Most re-refined products have been Group I or Group II or indeed intermediate products used mainly in low-grade blends. That is where ReGen III changes the game. Our patented technology produces true Group III base oils. They're clean, they're consistent, they're high-performing, and ready to be blended into the most advanced lubricants on the market. We are solving three systematic industry problems with one integrated, scalable solution: fixing the supply chain, reducing environmental harm, and closing the performance gap in re-refining. In short, ReGen III is not just responding to the market; we are redefining it. Let me illustrate just how compelling this opportunity is. This bar chart tells a very clear story. The green bars show the rising demand for Group III base oils, and it's growing fast. In fact, Group III is the fastest-growing segment of the base oil market.
Now compare that to the blue bars. That is supply. The gap between the two is a shortfall in North America, a widening gap between what's needed and what's being produced domestically. Today, the U.S. produces only 13% of North America's Group III requirements. The rest is imported, often from regions with long lead times, volatile pricing, and rising carbon intensity. As global demand is expected to double by 2050, this gap is only going to get bigger. Here's where it gets even more interesting. Of all the Group III base oils on the market today, only 1% - 2% come from re-refined sources. In other words, the industry wants cleaner, more sustainable Group III, but it doesn't yet exist at scale. ReGen III is uniquely positioned to change that.
With tariffs and policy now favoring local, secure, low-carbon supply, our model doesn't just make environmental sense, it makes economic and geopolitical sense too. This isn't just a market gap, it's a multi-billion dollar opportunity, and we're ready to lead the way. Let's bring this together. At ReGen III, we see a clear and urgent opportunity, and it's one that checks every box investors care about. We're not just solving one problem, we're addressing three critical challenges simultaneously: the supply chain strain, the global demand for Group III oils that far exceeds local supply, especially in North America, the environmental crisis, where millions of gallons of used motor oil are still incinerated or dumped every year, and the technology gap, where traditional re-refining has failed to produce the high-performance Group III base oils the market demands. ReGen III is stepping into that gap. We have the patented technology.
We have the partnerships and momentum, and we have a product that fills a glaring void in the market. Most importantly, we're not competing on cost alone. We're delivering a premium product that commands a Group III pricing premium of up to 50% over Group II or Group I oils. This is not a commodity play. It's a margin-driven opportunity in a market that's growing rapidly, under pressure to decarbonize, and hungry for local, sustainable, high-quality supply. Now, let's talk about why ReGen III stands apart. This is not just a good idea on paper. This is a premium product that's been rigorously tested and consistently validated by some of the biggest household names in the industry. When we share our product with major blenders and formulators, the response is invariably the same. This is the best re-refined Group III base oil we've ever seen. Why is that?
Because our Group III base oil delivers exactly what today's industry demands. It's demanding high performance, improved fuel economy, reliability, and consistency. Unlike most of the Group III in the market today, we can offer security of supply, produced locally, not imported from the Middle East or Asia. From a business perspective, this is a high-margin opportunity. Our patented process is cost-efficient and energy-efficient. We deliver the highest published yields of high-value Group III base oil of any re-refiner globally. Our feedstock, used motor oil, is not just abundant, it's cheaper than crude. We're taking a waste problem and turning it into a high-value product with significant pricing power. That's circular. That's green. It's a win on every front, from economics to ESG. Our Texas City project alone would address up to 10% of used motor oil that is currently being burnt or dumped in the United States.
That's a missed opportunity and a serious environmental liability. We're here to change that. ReGen III isn't just making base oil; we're creating a cleaner, more secure, more profitable future for the entire industry. We are standing at a tipping point. The fundamentals are in place, and the market is calling, and our goal is simple: speed to market. We are actively targeting a meaningful development within the next 6 - 12 months, and our experienced team is laser-focused on execution. We're not waiting; we're moving. Our deep industry knowledge and global network have opened doors to a prestigious group of potential off-takers and strategic partners, from major oil companies to national blenders to ESG-driven institutional players. These aren't theoretical conversations. We're in deep, advanced dialogue with a number of these parties, and the excitement is truly mutual. We believe we are close, very close.
We're developing along two tracks: brownfield opportunities, where we can plug in quickly and cost-effectively, and our flagship greenfield project in Texas City, a purpose-built facility designed to scale and set a new standard in the industry. On the financing front, we're ready. As soon as partnerships are finalized, we're poised to hit the ground running. We're already engaged with leading banks, and our Part 2 application is underway with the U.S. Department of Energy’s Loan Programs Office. We believe our project aligns perfectly with both the U.S. and indeed Canada's administration's push for clean energy, domestic manufacturing, and circular economy solutions. This isn't just a story about technology or product. It's a story about timing, execution, and opportunity, and we're ready to capitalize. Let me turn your attention now to our flagship project and the centerpiece of our growth strategy, namely Texas City.
This is not just another facility; this is a game-changer. We're developing a 5,600-bbl per day greenfield plant, and when complete, it will be the second-largest producer of Group III base oils in North America and the largest re-refined Group III facility on the continent. Let that sink in quickly: the largest in North America. What's most exciting, the project is already derisked. We've successfully completed pilot operations. Engineering is well advanced. Feedstock supply is secured, and the financing roadmap is already in motion. At the helm of this development is Brad Kotush , our recently appointed CFO, an industry veteran whose experience in executing large-scale energy infrastructure projects is expected to be a major accelerator for our success. What's next? We're in the final stages of partnership negotiations, and once finalized, we'll move rapidly into project financing, completion of final engineering, and FID, final investment decision.
Texas City is only the beginning. This project is the launchpad. We're already planning parallel developments, leveraging the same model to scale efficiently across North America. We're not talking about an idea; we're talking about a proven, engineered, and ready-to-scale platform. With your support, we can move fast, move first, and capture a leadership position in a massive, growing market. Let's talk about location, because in our business, location is leverage. Our flagship facility is being developed in Texas City, and the strategic advantages are undeniable. This site offers everything we need to scale rapidly, operate efficiently, and serve high-demand markets across the world. It has highway, rail, and barge access, allowing us to move product quickly and cost-effectively across North America. It has a deep-water port, giving us direct access to international markets, including Europe, where demand for high-performance Group III base oils is growing rapidly.
It has off-site water treatment, significantly reducing our infrastructure footprint and indeed CapEx. All the major utilities are already in place. That saves time, it reduces complexity, and helps us stay on track for rapid deployment. In short, Texas City isn't just a good site; it's a strategic launchpad for long-term growth. It positions us to hit the ground running and move fast when the market is ready. With the scale and reach of this site, we're not just building one facility; we're building a platform for global leadership in sustainable, high-margin Group III base oil production. Here's something most people don't know: the base oil in your engine oil never actually breaks down. It can be recycled indefinitely. Yet today, less than 2% of global Group III base oil supply comes from re-refined sources. That's not just inefficient; it's a massive waste of a highly valuable resource.
Instead of recycling, we're still burning used lubricants or downgrading them into low-grade products. In 2025, that's not just outdated; it's unsustainable. The industry knows it. In fact 2/3 of major players now have public Scope 3 emission reduction goals, but few have real solutions. That's exactly where we come in. We're not just offering a high-performance product; we're offering a circular economy solution in a $6 billion a year Group III base oils market that's desperate for change. Our re-refined base oil technology delivers premium quality, massive carbon reductions, and a compelling value proposition without compromise. We're just getting started. Texas is only our first step. We're already targeting multiple follow-on projects across the United States, Europe, Asia-Pacific, and indeed the Middle East. Our strategy includes greenfield sites, brownfield retrofits, M&A, and JVs designed to scale rapidly.
Our patents cover all major global markets, and we're ready to license in select non-core regions. Our vision is very, very simple. It's to build the world's leading circular base oil company, a company that doesn't just reduce emissions but transforms a broken global system. This is a rare opportunity to align world-class sustainability with superior economics, and we're positioned to lead it. Let me put this all in two perspectives. We've developed innovative technology that addresses a critical, unmet global need, one the industry can no longer afford to ignore. Yet today, our market cap is just CAD 30 million . That's not a reflection of our potential. That's a disconnect waiting to correct. Here's what's really happening: our insiders hold over 17%. We're all in. We're finalizing transformational partnerships, ones that could trigger a share price re-rating and set us off to the races. This isn't a one-project company.
We're building a platform for long-term growth with multiple projects we're ready to execute from Texas to new global markets. This is a classic inflection point, a moment where early believers can position themselves before the market wakes up. We know where this is going, and we're inviting you to come with us. ReGen III is not just another player in this space. We are at the cusp of a transformation that will reshape how the world thinks about lubricants, emissions, and sustainability. We're uniquely positioned for both near-term wins and long-term global growth. Why? Because our disruptive technology creates extraordinary margin opportunities. We produce Group III base oil, a premium product, but at lower costs than traditional virgin oil producers. There are two reasons: a highly efficient patented process, which is unique, and access to low-cost feedstock that others overlook. This is not theory. Our technology is proven.
Our yields are industry-leading, and our margins are in modeled scenarios outstanding. We are positioned to be the first to market with this kind of efficiency and scale. We are in active discussions with strategic partners, and once those partnerships solidify, we are ready to accelerate commercialization rapidly. It does not stop at Texas. We have a roadmap for global expansion, from greenfield to brownfield opportunities. Whether building from scratch or retrofitting existing Group I or II, or indeed VGO, vacuum gas oil re-refiners, we have dozens of viable targets around the globe. This is about enabling the circular economy, not just reducing waste, but creating real value. We are helping the lubricating base oil market reduce its dependence on virgin base oils, cut emissions, and in many jurisdictions, meet regulatory mandates. We are tapping into a massive growing market, and the timing truly could not be better.
We have the technology, the team, and the momentum, and we are inviting the right investors to join us as we scale. We welcome the opportunity to speak further with those of you who are ready to be part of this journey. I think we have time for a couple of questions that have come through, so I'll just respond to those, if I may. Does ReGen III, this is the question, does ReGen III plan to collect its own used oil? Put simply, not at this time. The current market is oversupplied with used motor oil, and we see no need to vertically integrate collection. Our process has a significant margin advantage, which positions us to displace existing off-takers or, if required, import feedstock to ensure supply. A follow-up question to that is, do you have certainty on your feedstock and having enough supply?
Short answer to that is absolutely yes. We've secured letters of intent covering over half of the required feedstock for our Texas City facility. We are in active discussions with additional suppliers, and they are progressing exceptionally well, and we are confident in our ability to fully contract the required volume ahead of any final investment decisions. One additional question is, how long until you're operating? I would summarize this in the following way. We're actively exploring ways to accelerate our path to production, including potential M&A opportunities and retrofit opportunities that would significantly shorten both timelines and indeed reduce capital intensity and time to cash flow. For our flagship Texas City project, the key near-term milestone is securing a strategic partnership, either through an off-take agreement, direct investment, or indeed through other partnerships.
This would be a transformational step for the company, enabling us to finalize project financing and to reach that final investment decision. Once that final investment decision is achieved, we anticipate a construction timeline of approximately 24 to potentially 30 months. This concludes our presentation today. My sincere thanks for your time and attention. For those that would like to reach out to me, you can reach out on our website or tweatherill@regen3.com or by phone on 647-91-3470. Again, thank you very much for your time today.