Cerealto (Siro) and the Seguin Economic Development Corporation Agree to Mutual Settlement Agreement
The company has agreed to this decision until the new start date for construction is defined and the minimum necessary production volume is secured to reactivate the project.
Cerealto (Siro) and the Seguin Economic Development Corporation (SEDC) have agreed to a Mutual Settlement Agreement in which the land that was granted to Cerealto per the terms of a Performance Agreement executed in 2014 will be deeded back to the SEDC. In addition, Cerealto the City of Seguin and Guadalupe County have mutually agreed to dissolve the active tax abatement agreements executed between the respective parties. This decision was motivated by the fact that the Company has yet to achieve the minimum necessary production volume to ensure the viability of the project and that the established statutory period is about to expire.
The SEDC has reinforced its commitment to assist and support Cerealto as this project continues to progress. Going forward, Cerealto will be working diligently to generate the needed additional production volume and determine a new construction timeline for the proposed food manufacturing facility. The SEDC and Cerealto are fully committed to working together in order to eventually secure the project in the City of Seguin once the necessary production volume is guaranteed. Equally, Cerealto’s business partners are fully supportive of this decision.
As of today, several minor investments have been made by Cerealto in relation to this project. These include the recruitment of three senior managers who will continue working for the company and ensure the project comes to fruition. ####