RE: NewsCinemage to dabble with bioenergy (CIG.v Last .025cts)
Number of shares outstanding 37,746,486
2007-11-15 10:26 ET - News Release
Mr. Edgar Froese reports
CINEMAGE SUB AND AFFILIATE SIGN BIOENERGY JOINT VENTURE PROPOSAL
Cinemage Corp.'s subsidiary Advanced Cultural Technologies Inc. has signed an agreement (subject to regulatory and shareholder approvals) with its affiliate Cinemage Systems LP to form a joint venture to investigate business expansion opportunities in the development and commercialization of bioenergy technologies. "The joint venture will allow us to continue to evolve our current technology while diversifying the corporation's interests into the alternative energy sector," said Edgar Froese, chief executive officer of Cinemage.
Under the terms of the joint venture proposal, the partnership will market up to $1-million in limited partner units carrying a full year-end tax write-off, and will use a substantial portion of proceeds to repay previous marketing advances from ACT, and will thereby finance its joint participation in the new joint venture. Cinemage has, through its wholly owned subsidiary ACT, developed a proprietary market-ready software engine that functions as a platform for securely hosting, distributing and processing financial transactions for the sale or licensing of digital content across the Internet. The corporation now seeks through the announced joint venture to expand its technology research and development business interests into the bioenergy technology sector.
"We are by now experienced in the life cycle of developing and refining new technologies," commented Mr. Froese. "Our primary area of biotechnology interest is in wood gasification used to generate electrical power and heat. It is in fact an old process developed in the forties, which now finds itself strategic to environmental protection as a technology that can produce clean sustainable energy from biomass without adding greenhouse gas emissions to the environment and thereby contribute to global warming. Utilizing beetle kill as feed stock, there is an opportunity here to provide efficient power to the public while contributing to the resolution of the immense problem created by the Mountain Pine Beetle infestation in central British Columbia."
Cinemage holds an option to acquire all partnership units in the future in exchange for common stock of the corporation issued at fair market value. As a related-party transaction, the joint venture agreement is subject to approval by minority shareholders of Cinemage and the TSX Venture Exchange.
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