Vancouver, BC - Viridis Energy Inc. ("Viridis" or the "Company") CA:VRD +3.16% VRDSD -7.61% , announced today that effective June 30, 2014 its subsidiary Scotia Atlantic Biomass Company Limited ("Scotia Atlantic") has entered into a strategic agreement with Halifax Grain Elevator Limited ("Halifax Grain"). Located in one of the most strategic ports in Canada for export to Europe, Halifax Grain will invest up to $1,000,000 in Viridis' subsidiary.
Halifax Grain, a dominant bulk grain handling and storage provider at the Port of Halifax, provides unique and segregated storage using 365 silos ready for transport via cargo ship, transport vehicle or rail car. This system, unlike most pellet storage facilities, allows for different grades of pellets to be stored. The Port of Halifax is the last stop for vessels heading east from the Great Lakes and the St. Lawrence Seaway to eastern North America and Europe.
"The Province of Nova Scotia is an ideal location for Viridis to continue its expansion on the east coast, given our valued relationship with Halifax Grain and the Port of Halifax, an advantageous shipping route to the rapidly growing market in Europe. Naturally, forming a strategic relationship with one of the principle operators at a key east bound port is fundamental to our tactical growth strategy," commented Christopher Robertson, CEO of Viridis.
Under the terms of the agreement, Halifax Grain will invest up to a total of $1,000,000 in Scotia Atlantic for a maximum 20% equity ownership in the Viridis subsidiary and work with Scotia Atlantic management in support of its operational objectives. Halifax Grain also provides Scotia Atlantic with inland transportation (trucking) in addition to storage and handling at the Port of Halifax.
"This strategic partnership is one that benefits all Nova Scotians," said George Malec, Vice President, Business Development and Operations, Halifax Port Authority. "What this does is strengthens the biomass industry in our province which is good for employment and good for the economy. We welcome and encourage this type of private sector investment and we look forward to our continued work with both Viridis Energy and Halifax Grain."
Source: Viridis Energy Inc.
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