Viridis Energy Completes Acquisition of Nova Scotia Wood Pellet Manufacturer
February 06 2012 - 10:00PM
Marketwired
Viridis Energy Inc. ("Viridis" or the "Company") (TSX VENTURE:VRD)
(OTCQX:VRDSF), 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 onor 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 Loanusing 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
verysupportive 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."
About Viridis Energy Inc.
Viridis Energy Inc. (TSX VENTURE: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.
Contacts: Grannus Financial Advisors, Inc. Yvonne L. Zappulla
Managing Director 212-681-4108Yvonne@GrannusFinancial.com Viridis
Energy Inc. Michele Rebiere Chief Financial Officer
905-847-5226Investorinfo@ViridisEnergy.ca www.viridisenergy.ca
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