VANCOUVER, Nov. 13, 2013 /CNW/ - Lignol Energy Corporation (TSXV: LEC)
("LEC" or the "Company"), is pleased to announce that, further to its
news release of September 5, 2013, LEC has completed the first A$2
million tranche of a A$4.07 million loan to Neutral Fuels Parent
Company ("Neutral Fuels") to fund the initial rollout of closed loop
biorefineries in the Asia Pacific/Middle East/Africa region ("APMEA")
in an agreement with the McDonald's used cooking oil biodiesel program.
Under the arrangement with McDonald's, Neutral Fuels currently operates
two closed loop biorefineries located in Dubai, United Arab Emirates
and Melbourne, Australia.
Today's funding is structured as a 5 year, unsecured, non-interest
bearing loan to Neutral Fuels. In connection with the loan, LEC
acquired a 20% interest in Neutral Fuels and a 51% interest in Neutral
Fuels (Melbourne) Pty Ltd. ("Neutral Fuels Melbourne"), which has the
exclusive rights to Neutral Fuels business in Australia and New
Zealand. LEC plans to fund the remaining A$2.07 million to acquire an
additional 20% interest in Neutral Fuels by the end of February 2014,
thereby increasing its ownership to 40%.
"We are delighted to have completed the first tranche of our loan and
the acquisition of an interest in Neutral Fuels, an emerging leader in
the production of biodiesel from used cooking oil", said Ross
MacLachlan, CEO and Chairman of LEC. "This investment is keeping with
our strategy of acquiring interests in businesses which offer
sustainable solutions for the production of environmentally preferred
fuels and have the ability to produce near term revenues and cash
flows."
"This is a significant step for Neutral Fuels and provides an excellent
financial, technical, and geographic platform for our future expansion.
We are looking forward to working with Lignol in a number of exciting
areas" said Karl W. Feilder, CEO and Chairman of The Neutral Group.
This investment was funded by LEC accessing an additional $2,035,000
from the Company's secured revolving credit facility of up to
$12,500,000 with Difference Capital Financial Inc. This increased the
amount drawn under the facility to $11,785,000.
About Neutral Fuels
Neutral Fuels owns and manages biorefineries that convert used cooking
oil into biodiesel, the modern, sustainable replacement for fossil
diesel. On a lifecycle basis, biodiesel accounts for over 80% reduction
in carbon dioxide and its equivalents, the major contributors to
climate change. Neutral Fuels pioneered the closed loop business model
which was developed specifically for McDonald's use, where used cooking
oil is collected from McDonald's restaurants by the same vehicles that
deliver the fresh oil. The used oil is then backhauled to the Neutral
Fuels biorefinery where it is converted, litre for litre, into
biodiesel. This biodiesel is then pumped back into the delivery fleet
in an ongoing recycling process.
In Dubai, used cooking oil is collected from more than 100 McDonald's
UAE restaurants each month and their fleet of supply trucks in the UAE
has to date driven more than 2 million kilometres on Neutral Fuels B100
biodiesel. In Victoria Australia, the Neutral Fuels Melbourne
biorefinery currently recycles the used cooking oil from more than 150
McDonald's restaurants.
Neutral Fuels, headquartered in Dubai, UAE, is a member of The Neutral
Group, the international clean-tech organization founded in 2006 to
build sustainability strategies for the logistics, energy and
hospitality industries and to execute significant reductions in energy
spent and CO2 emissions. CEO and founder, Karl W Feilder, won the Asian
Sustainability Leadership Award in September 2012 and was awarded
Innovator of the Year in 2011 by LOG Magazine for his work in carbon
savings in the Middle East.
Neutral Fuels' closed loop business model, which was developed
specifically for McDonald's, takes used cooking oil from its local
restaurants and in return provides B100 biodiesel to fuel its
suppliers' delivery fleets. The company has been featured in print and
television media including;
CNN: http://tinyurl.com/Neutral-Fuels-CNN
BBC : http://tinyurl.com/Neutral-Fuels-BBC
Australian TV : http://tinyurl.com/Neutral-Fuels-Australia
For more information, please visit www.biodiesel.ae
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., 56% of Territory Biofuels Limited, 21% of
Australian Renewable Fuels Limited, 51% of Neutral Fuels Melbourne and
20% of 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 ability to complete
the funding of the second tranche of A$2,070,000 of a A$4,070,000 loan
to Neutral Fuels within the agreed timeframes and to increase its stake
to 40%, the ability of Neutral Fuels to complete the rollout of closed
loop biorefineries in accordance with its agreed timetable with
MacDonald's, LEC's ability to invest in, or otherwise obtain, equity
interests in energy related projects which have potential synergies
with the Company and which have the potential to generate near term
cash flow.
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, 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's
subsidiaries, associated and investee company to generate future near
term profits and to pay dividends, and to meet increasing regulatory
requirements, and LEC's ability to divest the ARW ordinary shares due
to modest trading volumes.
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, the Company 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
