EcoSystem Closes Equity Financing
November 13 2009 - 1:35PM
Business Wire
EcoSystem Corporation (OTC Bulletin Board: ESYM) today announced
its closing on the sale of EcoSystem preferred stock and warrants
to purchase EcoSystem common stock to three investment funds for
$13 million.
The new investment is in addition to the $76 million equity
financing completed by EcoSystem in August 2009. The new investment
funds will be held with the proceeds of the $76 million financing
in a restricted EcoSystem account and will be available for use
according to the use of proceeds schedule and other conditions
specified in the agreements.
EcoSystem will use the investment proceeds to acquire distressed
renewable fuel production facilities and other
strategically-compatible assets, and to develop and integrate
EcoSystem’s Cellulosic Corn™ technologies into EcoSystem’s planned
production facilities.
EcoSystem’s goal is to achieve an annualized renewable fuel
production rate of 500 million gallons per year within three years,
and to demonstrate market leadership by using its technologies to
refine more fuel out of corn for less cost on reduced energy
consumption and carbon emitted.
Detailed information regarding this investment is available
online at www.eco-system.com in EcoSystem’s November 13, 2009 Form
8K.
Cellulosic Corn™
The corn ethanol industry contributed over $65 billion to the
GDP by offsetting 7% of America's fossil fuel needs in 2008.
EcoSystem intends to prove that corn has much more to add.
EcoSystem’s view is that the established first generation corn
ethanol infrastructure is the only practical pathway in North
America to cost-effectively increase the production and use of
carbon-neutral biofuels on globally-meaningful scales. To
accomplish this in a competitive and environmentally superior way,
the installed base of first generation corn ethanol facilities will
need to evolve to achieve significantly improved production
efficiencies. EcoSystem intends to do just that, and to become a
leading low cost and low carbon producer of renewable fuels by
leveraging its technology portfolio to acquire and upgrade corn
ethanol facilities into increased financial and environmental
sustainability while facilitating the convergence of cellulosic and
corn ethanol.
EcoSystem’s portfolio of patented and patent-pending Cellulosic
Corn™ technologies are designed to achieve the following key
goals:
- Increase the net energy balance
of biofuel derived from corn;
- Increase profitability of corn
ethanol;
- Decrease amount of petroleum
burned to make corn derived biofuel;
- Increase the nutritional content
of corn ethanol co-products;
- Reduce, reuse and recycle the
carbon emissions of corn ethanol production;
- Diversify the biomass mix
accepted and produced by traditional corn ethanol facilities;
- Decrease the commodity and
financial risk profile of corn ethanol;
- Standardize corn-friendly
cellulosic technology by building on the existing corn ethanol
complex; and,
- Enhance the competitive
positioning of corn ethanol in the domestic and global
markets.
About EcoSystem Corporation
EcoSystem’s ambition is to become a leading low cost and low
carbon producer of renewable fuels by acquiring and upgrading
existing corn ethanol facilities with technologies designed to
increase the yield and to reduce the energy consumption and carbon
intensity of refining fuel out of corn. Additional information is
available online at www.eco-system.com.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking statements" within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, as amended by
the Private Securities Litigation Reform Act of 1995. Those
statements include statements regarding the intent, belief or
current expectations of EcoSystem Corporation and members of its
management as well as the assumptions on which such statements are
based. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking
statements. Important factors currently known to management that
could cause actual results to differ materially from those in
forward-statements include fluctuation of operating results, the
ability to compete successfully, and the ability to complete
before-mentioned transactions. The company undertakes no obligation
to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results.