Bioleum Corporation, the renewable‑fuel arm of Comstock Inc., has closed a $6.5 million acquisition of Hexas Biomass Inc., a global leader in purpose‑grown energy crops and biomaterials. The deal was paid with $3.5 million of Bioleum common stock, $500,000 in cash, and $2.5 million of convertible debt that is tied to Hexas revenue. The transaction formalizes a relationship that began with a January 2025 agreement in which Bioleum’s predecessor, Comstock Fuels, secured exclusive rights to Hexas’ intellectual property for liquid‑fuel applications and made a strategic investment.
Hexas’ proprietary XanoGrass varieties produce 25–30 dry metric tons per acre, translating to more than 100 barrels of biofuel per acre per year—well above the yield of conventional corn or soy. By adding Hexas’ high‑yield crops to its portfolio, Bioleum can accelerate its goal of reaching 200 million barrels of renewable fuel per year by 2035 and reduce feedstock variability and cost. The acquisition also deepens Bioleum’s integrated platform, pairing its advanced refining technology with Hexas’ proven cultivation expertise to create a more competitive, carbon‑negative fuel supply chain.
Wendy Owens, Hexas’ founder and president, said the deal “will help us to execute on our vision by accelerating commercialization and global deployment of our technologies in biofuels and multiple other biobased applications.” Kevin Kreisler, Bioleum’s CEO, added that incorporating a proprietary low‑cost feedstock model “provides unprecedented benefits for our refining solutions and targeted supply chain partners.” The comments underscore the strategic intent to combine high‑yield feedstock with efficient conversion technology.
Bioleum became an independent company on May 22 2025, though Comstock Inc. still holds a significant stake. The acquisition is a small, $6.5 million transaction relative to Bioleum’s scale, but it is a key step in securing a proprietary, carbon‑negative feedstock that can be grown on marginal lands without competing with food production. The deal also represents a formalization of the earlier January 2025 partnership, giving Bioleum a stronger foothold in the renewable‑fuel market while allowing Comstock to focus on its metals recycling and mining operations.
Investors have reacted cautiously, citing Comstock Inc.’s distressed financial profile—negative profitability metrics and a low Altman Z‑score—despite the strategic benefits of the acquisition. The transaction signals Bioleum’s continued focus on scaling its renewable‑fuel platform, but it also highlights the broader financial challenges faced by its parent company.
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