Vertex Energy, Inc. announced that it has successfully closed Phase 2 of its previously disclosed, planned joint venture partnership with Tensile Capital Management LLC As first announced on July 31, 2019, Vertex and Tensile entered into a joint venture arrangement with the goal of accelerating the full development of the Company's Heartland base oil refinery located in Ohio, subject to a successful pilot test validating a process by which used motor oil is converted into high purity base oil. As recently announced, the pilot test was completed, and the results successfully validated the proposed process improvements. Under the terms of the agreements, the Heartland refinery will be owned jointly by Vertex and a fund managed by Tensile, through a newly created special purpose vehicle, HPRM LLC ("HSPV"). Vertex will retain a 35% interest in HSPV, while Tensile will hold a 65% interest. In exchange for its interests in HSPV, Tensile has agreed to (1) purchase $13.5 million of HSPV interests from Vertex in exchange for a $13.5 million cash infusion to Vertex's balance sheet (less $1 million of interests in Vertex Refining Myrtle Grove LLC which Vertex is required to purchase in connection with the closing); and (2) invest $7.5 million of cash in HSPV at closing, with the option to deploy another $7.0 million into the HSPV in connection with the purchase of additional HSPV interests. Per the agreements, Vertex has the option to repurchase the Tensile interests in HSPV after three years, while Tensile can put its interest to Vertex after five years. Vertex will retain operational control of the Heartland refinery.