Trecora Resources (NYSE: TREC), a leading provider of specialty hydrocarbons and specialty waxes, today announced that on September 28, 2020, the Company completed its share sale transaction in Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.

In connection with the share sale, Trecora received in aggregate, total gross proceeds amounting to $70.5 million. Proceeds of the share sale net of taxes and transaction expenses are estimated to be $60 million.

"The closing of our non-core AMAK equity share sale marks an important milestone for the company and the fulfillment of our commitment to deliver significant value to our stockholders," said Pat Quarles, Trecora's President and Chief Executive Officer. "Proceeds from this transaction have enabled us to pay down debt and achieve our target leverage ratio of 1.5 to 2.0 times Adjusted EBITDA from continuing operations while building significant liquidity for future deployment.

"Our primary focus on cost control, operational reliability, and sound execution has allowed us to navigate an uncertain 2020 from a position of strength. With the completion of this transaction we have simplified our company's structure to pure speciality chemicals and positioned ourselves to generate growth. Our internal growth initiatives, comprising of approximately 27 individual projects, remains on target to realize approximately $4 million of annualized incremental EBITDA value creation in 2020 and significantly more in 2021," concluded Mr. Quarles.

About Trecora Resources (TREC)

TREC owns and operates a specialty petrochemicals facility specializing in high purity hydrocarbons and other petrochemical manufacturing and a specialty wax facility, both located in Texas, and provides custom processing services at both facilities.