Lignol Energy increases equity stake in Australian Renewable Fuels
Lignol Energy Corporation (LEC), a leading technology company in the advanced biofuels and renewable chemicals sector, announced on February 13 that it has increased its equity stake in Australian Renewable Fuels Limited (ARF) which will result in LEC becoming one of the largest shareholders in ARF.
On February 7, ARF announced it had received an offer of US$12.8 million from LEC. Part of the deal closed on February 12, 2013, with the balance closing on March 5, 2013. Upon completion of these two transactions, LEC expected to hold a total of 744,660,715 ordinary shares of ARF, or approximately 17.75%.
The above transactions were funded by the company’s existing cash and by a proposed line of credit of US$4.87 million provided by one of LEC’s major shareholders, Difference Capital Funding, Inc. (DCF). DCF will provide LEC with a line of credit at 8% interest per year for one year, or if LEC obtains an alternate equity-financing source, it will end at that point.
More information on the companies can be found at Lignol’s website www.lignol.ca and at ARF’s website www.arfuels.com.au. (February 13, 2013)