Mr. Chris Robertson reports
VIRIDIS ENERGY INC. ENTERS LETTER OF INTENT TO ACQUIRE CONFLUENCE ENERGY COLORADO-BASED PREMIUM PELLET MANUFACTURER
Viridis Energy Inc. has entered into a letter of intent to acquire 100per cent of the outstanding shares of Confluence Energy LLC, one of thelargest wood pellet plants in the western half of the United States.This transaction, subject to the applicable policies of the TSX VentureExchange, will be structured as an earn-out and be accomplished through ashare exchange of Viridis Energy common stock and the assumption ofdebt. The transaction is expected to close during the first half of thecurrent year and is projected to be accretive to the company's earningsper share during the first year.
Confluence Energy is a Colorado-based wood pellet manufacturer anddistributor with a capacity of 80,000 tons (expandable to 125,000 tons)per year of packaged wood pellets. Consistent with Viridis's vision,Confluence manufactures wood pellets utilizing pine beetle kill wood(wood from trees killed by mountain pine beetle infestation), a biomassfeedstock that is plentiful in the Rocky Mountain region. The companyis a supplier to several large retail customers, including nationalbig-box home improvement stores. Confluence was featured in Forbesmagazine in September, 2009, for its accomplishment in creatingColorado's first pellet mill and its focus on creating an opportunityfrom a potential catastrophic situation, in turning trees decimated bythe mountain pine beetle into a renewable energy source.
Mountain pine beetles infestation is predominately focused on westernNorth America, from Mexico to British Columbia, where an estimated 29million acres are threatened. In Colorado and Wyoming alone, mountainpine