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
