VANCOUVER, BC - Viridis Energy Inc. ("Viridis" or the "Company") CA:VRD +10.00% , a "Cleantech" manufacturer and distributor of renewable energy providing waste biomass fuel to global residential and industrial markets, announced today that on March 31, 2014, Cornwall Investments LLC ("Cornwall") exercised 25,000,000 of its Viridis Energy common share purchase warrants at a price of $0.15 per share, generating proceeds of $3,750,000. The amount of warrants exercised was an increase from the 15,000,000 warrants the Company had previously indicated on a March 4, 2014 press release that Cornwall had intended to exercise.
The Company also reported that it used the proceeds from the Royal Bank of Canada 6% term loan secured last month to repay the $3.3 million loan owed by its Okanagan Pellet Company subsidiary to Cornwall prior to the target date of October 2014. As a result, 847,000 shares of Viridis common stock previously held in escrow for possible future release to Cornwall as a condition of the loan were released back to the Company's treasury account from escrow.
The shares purchased through the warrant exercise increases Cornwall's holdings of the Company's common stock to 104,488,376 shares, or 75% of the current shares outstanding of 138,451,883. Viridis' fully diluted shares total 149,527,369, inclusive of all options (average exercise price of $0.27) and warrants (average exercise price $0.22), which if exercised would generate approximately $2.4 million in additional capital to the Company.
Commenting on the transaction, Robert Aaron, Chairman of the Board of Viridis Energy and CEO of Gilwern Associates, an advisor to Cornwall Investments LLC, said, "The worldwide transition towards renewable energy sources has created a strong and growing demand for wood pellets, especially the superior quality wood pellets produced by Viridis. Our management team is replicating the efficiencies developed in the Okanagan Pellet plant in British Columbia into our recently reactivated plant in Nova Scotia. Cornwall is confident that the early exercise of its $0.15 warrant will provide growth capital the company can utilize to continue its expansion of both its production and merchanting capabilities."
Have something to say? Share your thoughts with us in the comments below.