Lignol Energy buys stake in Australian Renewable Fuels Ltd.
Lignol Energy Corp. (LEC), a Canadian company engaged in the development of biorefining technologies for the production of advanced biofuels, has agreed to acquire 275 million ordinary shares, representing an 11% stake, in Australian Renewable Fuels Limited (ARW), an Australian-based biodiesel production company. The purchase will be done through Wasabi Energy Limited, a clean technology company, for a purchase consideration of CAD4.27 million (US$4.3 million). Payment will be partly in cash, issuance of shares, and through issuance of secured convertible debenture maturing 10 months after issuance.
The agreement was inked after considering all the details that would govern the amount of shares to be issued, as well as the secured debentures to be issued, especially as they relate to their value at maturity.
On the closing of the share acquisition, which was expected to close on August 20, 2012, Wasabi will hold approximately 19.2% of the issued and outstanding common shares of LEC. Wasabi also retains approximately 21 million ordinary shares in ARW. (August 16, 2012)