Vancouver, BC - Viridis Energy Inc. ("Viridis" or the "Company") a "Cleantech" manufacturer and distributor of alternative energy providing biomass fuel to global residential and industrial markets, announced today that it has closed the second and final tranche of its $5,000,000 non-brokered private placement (the "Private Placement") announced on April 3, 2013 with the placement of $2,000,000 of units sold under the terms previously disclosed.
The second tranche consisted of 20,000,000 units at a price of $0.10 per unit generating gross proceeds of $2,000,000. Each unit consists of one common share of the Company and one-half of one non-transferable share purchase warrant. Each warrant will entitle the holder to purchase one common share of Viridis at any time within five years following the issuance of the warrant, subject to certain conditions, at an exercise price of $0.15 per share during the first twelve month period, $0.20 per share during the second twelve month period, $0.25 per share during the third twelve month period, $0.30 per share during the fourth twelve month period, and $0.35 per share during the fifth and final twelve month period. If the average trading price of the Company's common shares is $1.00 or greater for a period of 30 consecutive days, the Company can accelerate the expiry period of the warrants by providing written notice of such acceleration by way of news release, such that the exercise period of the warrants will expire on the day that is 30 days after the date of such news release.
All securities issued pursuant to the second tranche of the Private Placement are subject to a hold period, which expires on September 14, 2013. No referral fee or commission was paid on this transaction.
"This final portion of our $5 million financing enables us to complete the start-up of Scotia Atlantic Biomass, which we expect to have operational within the next 6 to 8 weeks. This will bring our annual capacity to 180,000 metric tonnes," said Christopher Robertson, chairman and chief executive officer of Viridis Energy Inc., "As targets for green, renewable energy consumption set by major industrial countries become effective, we expect demand for wood pellets to far surpass supply. To prepare for the projected growth in demand, we are also studying production expansion alternatives at the company's Kelowna, BC plant."
Source: Viridis Energy Inc
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