VANCOUVER, Dec. 19, 2013 /CNW/ - Lignol Energy Corporation (TSXV: LEC)
("LEC" or the "Company"), a leading technology company in the advanced
biofuels and renewable chemicals sectors, announced that further to its
press releases dated September 30, 2013 and November 6, 2013, it has
completed a A$1,488,000 subscription for secured convertible notes (the
"Notes") in Territory Biofuels Limited ("TBF").
The Notes convert at 5 or 15 cents (Australian dollars) per ordinary TBF
share depending on the outcome of several criteria related to the
Darwin facility, the outcome of which is expected to be known by June
30, 2014. Each of the Notes is convertible into ordinary shares of TBF
after June 30, 2014 and at any time up to November 15, 2018.
Upon the conversion of all the Notes, LEC will potentially increase its
controlling interest in TBF from 55% to between 75% and 87% of the
issued and outstanding shares of TBF, and between 75% and 85% on a
fully diluted basis depending on the final conversion price referenced
above. Other TBF shareholders participated in subscribing for a total
of A$12,000 of the Notes bringing the total funding to A$1,500,000.
For further details on the Notes, please refer to the press releases
dated September 30, 2013 and November 6, 2013.
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. To take advantage of current market
opportunities, TBF is in the process of raising funds to restart the
existing facility utilizing a specific grade of palm oil;
environmentally certified, Refined Bleached & Deodorized (RBD) palm
oil. In 2014, 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, 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 ability to invest in,
or otherwise obtain, equity interests in energy related projects which
have potential synergies with LEC and which have the potential to
generate near term cash flow, LEC's ability to continue as a going
concern and to raise additional financing to fund the operations of LEC
and its affiliates, LEC's ability to draw down additional funds in the
future from Difference Capital Financial Inc. (DCF), TBF's ability to
finance and restart its 140 million litre per year biodiesel plant and
glycerine refinery, to commence commercial operations and to generate
revenues and near term cash flow, and TBF's ability to integrate new
pretreatment technologies and catalysts to facilitate the processing of
a broad range of lower cost feedstocks. 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 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 to
market their products overseas and to meet relevant regulatory
requirements, the estimated cost of any future TBF capital investment,
the fluctuation of biodiesel and feedstock prices on TBF, the effect on
TBF of changes in government policy relating to the environment, and
incentives for renewable fuels, the ability of TBF to generate cash
flow and pay dividends, and the ability of TBF to market their products
overseas and to meet relevant regulatory requirements.
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
