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Kentucky investment into Braidy Industries can be refundable

The $15 million of taxpayers money is refundable if certain goals are not met.

LOUISVILLE, Ky. — Kentucky is banking on Braidy Industries to deliver on a promise of creating hundreds of jobs; however, the Commonwealth isn’t just rolling the dice.

They are called Triggering Events and there are four of them.

By June 30, 2018, Braidy Industries was supposed to begin construction or site preparations for the aluminum rolling mill, and on the first of that same month there was a groundbreaking ceremony which satisfied that provision.

Within 90 days from March 2, 2018, the company had to prove it allocated $25 million of the common stock offering for mill construction.

By the end of this year, December 31, 2020, Braidy Industries must show that it has $1 billion available for building and equipping the mill.

Finally by June 1, 2022, the company must have 51 percent of its employees in Kentucky, as well as 51 percent  of its assets in Kentucky.

If Braidy Industries falls short on any of the goals, Kentucky can take back its $15 million investment and also receive 8 percent in interest accrued each year since May 4, 2017.

Braidy Industries sent the FOCUS team the following statement:

“Gov. Beshear and the administration continue to closely monitor the situation at Braidy Industries. It is our hope that the project will come to fruition and create good-paying jobs in Eastern Kentucky. We want the project to succeed, but if the mill is not built we will seek the return of Kentucky’s original investment.”

RELATED | Braidy Industries needs $500M to break ground on aluminum plant in Eastern Kentucky, executives say

RELATED | Eastern Kentucky community remains hopeful for Braidy Industries aluminum plant despite setbacks

►Contact reporter John Charlton at jcharlton@whas11.com. Follow him on Twitter (@JCharltonNews) and Facebook.

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