Lignol Energy Corporation January 13, 2014 6:00 AM
VANCOUVER , Jan. 13, 2014 /CNW/ – Lignol Energy Corporation (LEC.V) (“LEC” or the “Company”), has agreed to acquire all of the outstanding and issued ordinary shares of Territory Biofuels Limited (“TBF”) and thereby increase its ownership of TBF from 55% to 100%. TBF owns the largest biodiesel plant in Australia with an annual capacity of 140 million liters with plans to re-start operations in the second half of 2014.
LEC’s offer to acquire all of the 4,771,367 outstanding ordinary TBF shares owned by other TBF shareholders, in exchange for the issue of 2.5 LEC common shares for each TBF ordinary share, will result in the issue of an additional 11,928,419 common shares of LEC. LEC’s offer has been accepted by all of TBF’s remaining shareholders and is subject to TSX Venture Exchange approval. The closing of this acquisition is expected to be completed on or before January 31, 2014 , at which time TBF will become a wholly owned subsidiary of LEC.
Upon the closing of the transaction, the total number of LEC issued and outstanding shares will be 164,019,087 (227,992,425 on a fully diluted basis).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Territory Biofuels Limited
TBF owns a large scale biorefining facility located in Darwin, Northern Territory which includes a Lurgi-designed biodiesel plant and the largest glycerine refinery in Australia . The facility was commissioned in 2008 at a cost of A$80 million , along with 38 million litres of related tankage, now leased by TBF. The biodiesel plant is the largest in Australia with a rated capacity of 140 million litres per year. The plant was originally built to run on palm oil and food-grade vegetable oil, however the plant was shut down in 2009 due to challenging technical and economic conditions. TBF is in the process of raising funds to restart the existing facility utilizing environmentally certified, Refined Bleached & Deodorized (RBD) palm oil. In 2015, TBF plans to integrate new feedstock pre-treatment technologies and catalysts to process a broader range of feedstocks such as lower quality tallow, used cooking oil and palm sludge oil; a waste product from palm oil mill extraction.
About Lignol Energy Corporation (“LEC”)
Lignol Energy Corporation is an emerging producer of biofuels, biochemicals and renewable materials from waste. LEC owns 100% of Lignol Innovations Ltd. (“LIL”), 55% of Territory Biofuels Limited prior to the transaction described above, 21% of Australian Renewable Fuels Limited (“ARW”), 51% of Neutral Fuels ( Melbourne ) Pty Ltd (“Neutral Fuels Melbourne”) and 20% of Neutral Fuels Parent Company Ltd (“Neutral Fuels”). The Company intends to invest in, or otherwise obtain, equity interests in energy related projects, which have synergies with the Company and have the potential to generate near term cash flow. Further information is available on the Company’s website at www.lignol.ca.