Vertex Energy, Inc. announced that it has successfully completed a pilot test program required to proceed with Phase Two of its planned joint venture partnership with San Francisco-based investment firm Tensile Capital (Tensile). As first announced on July 31, 2019, Vertex and Tensile entered into a definitive joint venture agreement to accelerate the full development of the Company's Ohio-based Heartland base oil refinery, subject to a successful pilot test designed to validate a process by which used motor oil is converted into high purity base oil. In December 2019, the pilot test was successfully completed. Following the positive test results, Vertex and Tensile have recently commenced a formal review process and are negotiating final documentation relating to the planned Phase Two of the joint venture. While Vertex anticipates moving forward with Phase Two in the next few weeks, there can be no assurance that the parties will agree on final transaction terms or that Phase Two will proceed as planned.