Algae.Tec Says Deal with Reliance Industrial Investments and Holdings Limited (RIIHL) to Launch Global Biofuels Division
January 23 2014 - 12:44AM
Business Wire
Algae.Tec Limited (ASX:AEB)(OTCQX:ALGXY)(FWB:GZA:GR) said the
signing of agreements with Reliance Industrial Investments and
Holdings (RIIHL) was the backing the Company needed to fund and
launch its Global Biofuels Division.
Algae.Tec's enclosed algae growth
technology system. (Photo: Business Wire)
RIIHL is part of the Reliance Group, India’s largest private
sector enterprise.
The agreements encompass a subscription agreement, and technical
and equipment supply agreements. These agreements also discuss
conditions for future commercial algae plants, following the
successful completion of the pilot plant.
The subscription agreement details the issue of $1.5m worth of
shares and $5m of options to RIIHL with both the shares and option
exercise price being set at the 90 day volume weighted average
share price, which equates to 16.3 cents per share. The shares will
be issued immediately and RIIHL will make additional investments by
exercise of $1.2m of options over the next two years.
The technical and equipment supply agreements detail the
technical goals that Algae.Tec will have to meet and the costs that
RIIHL will pay for the pilot plant and technical supervision.
“This is a very exciting step forward by Algae.Tec” stated Peter
Hatfull, Algae.Tec’s Managing Director. “The new biofuels facility
to be built in India, will be fully funded by Reliance Industrial
Investments and Holdings Limited (RIIHL), leaving the equity
injection to be used solely for working capital purposes”
“This level of financial backing and ongoing support is just
what Algae.Tec needed.”
“It’s a fact of business life that emerging companies need
funding injections and the technical grunt of this type to
transition into the commercial phase.”
“It’s good news for Algae.Tec and the algae biofuels
sector.”
The Algae.Tec Biofuels Division is operated out of the Atlanta
facility through the Company's wholly owned subsidiary, Algae
Energy Inc.
The vision is to work with this significant strategic partner
Reliance for many years to come, deploying Algae.Tec growth
platform technology to produce algae biofuels in India and
expanding through Asia to help meet increasing demand for
fuels.
Algae.Tec recently announced expansion into the nutraceuticals
market which taps the fast growing demand for products like
Spirulina and Chlorella. This Division is based in Nowra south of
Sydney. “It is exciting to have two distinct divisions with strong
strategic partners with both divisions participating in massive
global markets” said Mr Hatfull.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20140122006620/en/
Digital Mantra GroupSusan Fitzpatrick-Napier+61 (0) 2 8006
0424+1 650 798 5238team@dmgpr.com
Affinity Energy and Health (ASX:AEB)
Historical Stock Chart
From Nov 2024 to Dec 2024
Affinity Energy and Health (ASX:AEB)
Historical Stock Chart
From Dec 2023 to Dec 2024