VANCOUVER, Feb. 4, 2014 /CNW/ - Lignol Energy Corporation
(TSXV: LEC) ("LEC" or the "Company") is pleased to announce that it
has closed the transaction previously announced to acquire all of
the current outstanding and issued ordinary shares of Territory
Biofuels Limited ("TBF"), increasing its ownership of TBF from 55%
to 100%. TBF owns the largest biodiesel plant in Australia with an annual capacity of 140
million litres with plans to re-start operations in the latter half
of 2014.
LEC acquired 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,
resulting in the issue of an additional 11,928,419 common shares of
LEC.
As of the closing of the transaction, the total
number of LEC issued and outstanding shares is 164,019,087
(227,992,425 on a fully diluted basis) and TBF is now a wholly
owned subsidiary of LEC.
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"), 100% of
Territory Biofuels Limited, 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.
Caution concerning forward-looking
statements:
Certain statements contained in this document
may constitute forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements or
information include, without limitation, statements or information
about LEC's and TBF's ability to finance, restart and profitably
operate its 140 million litre per year biodiesel plant and
glycerine refinery. Often, but not always, forward looking
statements or information can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes" or variations
of such words and phrases or words and phrases that state or
indicate that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Such statements or information reflect LEC's
current views with respect to future events and are subject to
certain risks, uncertainties and assumptions including, without
limitation, LEC's ability to raise additional capital to fund
operations and to support the capital requirements of its
affiliates, TBF may in the future issue shares in connection with
the raising of capital or the repayment of debt or other
obligations, which could result in LEC owning less than 100% of
TBF, TBF's ability to successfully operate the Darwin facility
commencing in the latter part of 2014 and to generate revenues and
cash flow, TBF's ability to integrate new pretreatment technologies
and catalysts to facilitate the processing of a broad range of
lower cost feedstocks, LEC's ability to continue as a going concern
and to raise additional finance to fund the operations of LEC and
its affiliates and LEC's planned investment in Neutral Fuels,
Neutral Fuels and Neutral Fuels Melbourne's ability to maintain a
profitable working relationship with McDonald's restaurants, LEC's
ability to invest in, or otherwise obtain, equity interests in
energy related projects which have technical and commercial
synergies with the Company and which have the potential to generate
future dividends and near term cash flow, the requirements of the
potential effect of changes in government policy relating to the
environment, and incentives for renewable fuels, the potential
impact of changes in the prices of feedstock and the market price
of liquid fuels including biodiesel, ethanol and renewable
chemicals, the ability of LEC and its affiliates to generate future
profits and to pay dividends, and to meet increasing regulatory
requirements, LIL's ability to finance and complete the development
of a commercial project, LIL's ability to develop products and to
obtain off-take agreements, LEC's reliance on publically available
information of ARW in its evaluation of its acquisition of shares
in ARW, the potential inability to divest the ARW ordinary shares
due to modest trading volumes, the potential inability to divest
the ordinary shares LEC owns of TBF, the ability of ARW and Neutral
Fuels to market their products and to meet relevant regulatory
requirements, the estimated cost of any future TBF capital
investment, the fluctuation of biodiesel and feedstock prices, and
the effect of changes in government policy relating to the
environment.
Many factors could cause LEC's actual
results, performance or achievements to be materially different
from any future results, performance or achievements that may be
expressed or implied by such forward looking statements or
information, including among other things, financial market
conditions which will impact LEC's ability to finance its
operations and to meet future capital and investment requirements,
the demand for the market price of liquid fuels including gasoline,
biodiesel, ethanol, the market price and demand for renewable
chemicals, risks relating to the protection of technology from
infringement and those risk factors which are discussed elsewhere
in documents that LEC files from time to time with securities and
other regulatory authorities. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements or information prove incorrect, actual
results may vary materially from those described herein as
intended, planned, anticipated, believed, estimated or expected.
Except as required by law, LEC expressly disclaims any intention or
obligation to update or revise any forward looking statements and
information whether as a result of new information, future events
or otherwise. All written and oral forward-looking statements and
information attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the foregoing cautionary
statements.
SOURCE Lignol Energy Corporation