ViridisEnergy Inc. ("Viridis" or the "Company") (TSXV: VRD), announced today that it has completed the acquisition of certain assets of Enligna Canada Inc., a wood pellet mill operator located in Upper Musquodoboit, Nova Scotia. The assets were purchased from Enligna’s Receiver by 3260526 Nova Scotia Limited, a new, wholly owned subsidiary of Viridis (the “Subsidiary”).
The acquired assets include 20 buildings on four properties with a total of 157 acres and a separate 22 acre wood lot. The facilities house five pellet presses with the capacity to produce 110,000 tonnes of wood pellets, annually, and is the largest wood pellet manufacturing plant in Atlantic Canada. In addition, Enligna has an established reputation with customers in Europe and key relationships with raw material suppliers.
The Subsidiary obtained a $2.5 million short-term bridge loan (the “Loan”) to fund the acquisition. The Loan carries an interest rate of 6% per annum and is repayable on or before March 31, 2012. The Loan is secured by a demand mortgage charging the Subsidiary’s assets, as well as secured guarantees granted by Viridis and Okanagan Pellet Company Inc., another wholly owned subsidiary of the Company. The Company intends to repay the Loan using a more permanent source of funds, the negotiations for which are currently underway.
“We are acquiring a turnkey-ready operation with a skilled workforce on the East Coast of the continent where wood pellet use is highest, not to mention the proximity to seaports for exporting to our European customer base. The business community has been very supportive of Viridis to date, and we look forward to creating jobs and helping enhance the local economy,” said Christopher Robertson, Viridis’ chief executive officer, commenting on the acquisition. “We anticipate this acquisition will reduce our final cost of goods delivered to both our East Coast customers as well as our growing industrial customer base throughout Europe. The demand for wood pellets as a fuel source for power generation has expanded overseas in response to government policies requiring renewable energy sources to represent an increasing percent of energy consumption.”
Mr. Robertson added, “We expect the plant to be fully operational later this quarter and will resume business as Scotia Atlantic Biomass Company.”
Investor Contact: Yvonne L. Zappulla Managing Director Grannus Financial Advisors, Inc. 212-681-4108 Yvonne@GrannusFinancial.com
Company Contact: Michele Rebiere Chief Financial Officer Viridis Energy Inc 905-847-5226 Investorinfo@ViridisEnergy.ca
About Viridis Energy Inc. Viridis Energy Inc. (TSXV: VRD) is a publicly traded, "Cleantech" alternative energy company specializing in the agricultural and wood waste biomass. Headquartered in Vancouver, B.C., Viridis Energy operates Cypress Pacific Marketing, Okanagan Pellet Company and Scotia Atlantic Biomass Companyfocusing on the marketing, distribution and manufacturing of wood pellets and other renewable biomass. For more information on Viridis Energy Inc. please refer to the company website at www.viridisenergy.ca.
Forward-looking Statements Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s future operations. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a continued downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties associated with the demand for biofuels, (3) the risk that the Company does not execute its business plan, (4) the risk the Company does not secure sufficient working capital to finance the Loan repayment and its ongoing operations and growth,(5) the Company’s ability to hire and/or retain key management and employees, (6) ; an increase in the number of competitors with larger resources, (7) the Company’s ability to procure sufficient raw material from which it manufactures its products, and (8) other factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release and the Company intends to update such forward looking information in the Company's MD&Ain the event that actual results differ materially from such forward-looking statements contained herein. Additional information about these and other assumptions, risks and uncertainties are set out in the “Risks and Uncertainties” section in the Company’s MD&A filed quarterly with Canadian security regulators.
Neither the 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.
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