VANCOUVER, Dec. 19, 2013 /CNW/ - Lignol Energy Corporation
(TSXV: LEC) ("LEC" or the "Company"), a leading technology company
in the advanced biofuels and renewable chemicals sectors, announced
that further to its press releases dated September 30, 2013 and November 6, 2013, it has completed a A$1,488,000 subscription for secured convertible
notes (the "Notes") in Territory Biofuels Limited ("TBF").
The Notes convert at 5 or 15 cents (Australian dollars) per ordinary TBF
share depending on the outcome of several criteria related to the
Darwin facility, the outcome of which is expected to be known by
June 30, 2014. Each of the
Notes is convertible into ordinary shares of TBF after June 30, 2014 and at any time up to November 15, 2018.
Upon the conversion of all the Notes, LEC will
potentially increase its controlling interest in TBF from 55% to
between 75% and 87% of the issued and outstanding shares of TBF,
and between 75% and 85% on a fully diluted basis depending on the
final conversion price referenced above. Other TBF
shareholders participated in subscribing for a total of
A$12,000 of the Notes bringing the
total funding to A$1,500,000.
For further details on the Notes, please refer
to the press releases dated September 30,
2013 and November 6, 2013.
Neither 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.
About Territory Biofuels Limited
TBF owns a large scale biorefining facility
located in Darwin, Northern Territory which includes a
Lurgi-designed biodiesel plant and the largest glycerine refinery
in Australia. The facility was
commissioned in 2008 at a cost of A$80
million, along with 38 million litres of related tankage,
now leased by TBF. The biodiesel plant is the largest in
Australia with a rated capacity of
140 million litres per year. The plant was originally built to run
on palm oil and food-grade vegetable oil, however the plant was
shut down in 2009 due to challenging technical and economic
conditions. To take advantage of current market
opportunities, TBF is in the process of raising funds to restart
the existing facility utilizing a specific grade of palm oil;
environmentally certified, Refined Bleached & Deodorized (RBD)
palm oil. In 2014, TBF plans to integrate new feedstock
pre-treatment technologies and catalysts to process a broader range
of feedstocks such as lower quality tallow, used cooking oil and
palm sludge oil; a waste product from palm oil mill extraction.
About Lignol Energy Corporation
("LEC")
Lignol Energy Corporation is an emerging
producer of biofuels, biochemicals and renewable materials from
waste. LEC owns 100% of Lignol Innovations Ltd. ("LIL"), 55% of
Territory Biofuels Limited, 21% of Australian Renewable Fuels
Limited ("ARW"), 51% of Neutral Fuels (Melbourne) Pty Ltd ("Neutral Fuels Melbourne")
and 20% of Neutral Fuels Parent Company Ltd ("Neutral Fuels"). The
Company intends to invest in, or otherwise obtain, equity interests
in energy related projects, which have synergies with the Company
and have the potential to generate near term cash flow. Further
information is available on the Company's website at
www.lignol.ca.
Caution concerning forward-looking
statements:
Certain statements contained in this document
may constitute forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements or
information include, without limitation, statements or information
about LEC's ability to invest in, or otherwise obtain, equity
interests in energy related projects which have potential synergies
with LEC and which have the potential to generate near term cash
flow, LEC's ability to continue as a going concern and to raise
additional financing to fund the operations of LEC and its
affiliates, LEC's ability to draw down additional funds in the
future from Difference Capital Financial Inc. (DCF), TBF's ability
to finance and restart its 140 million litre per year biodiesel
plant and glycerine refinery, to commence commercial operations and
to generate revenues and near term cash flow, and TBF's ability to
integrate new pretreatment technologies and catalysts to facilitate
the processing of a broad range of lower cost feedstocks. Often,
but not always, forward looking statements or information can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes" or variations of such words and phrases or words and
phrases that state or indicate that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved.
Such statements or information reflect LEC's
current views with respect to future events and are subject to
certain risks, uncertainties and assumptions including, without
limitation, LEC's ability to raise additional capital to fund
operations and to support the capital requirements of its
affiliates, the requirements of the potential effect of changes in
government policy relating to the environment, and incentives for
renewable fuels, the potential impact of changes in the prices of
feedstock and the market price of liquid fuels including biodiesel,
ethanol and renewable chemicals, the ability of LEC and its
affiliates to generate future profits and to pay dividends, and to
meet increasing regulatory requirements, LIL's ability to finance
and complete the development of a commercial project, LIL's ability
to develop products and to obtain off-take agreements, LEC's
reliance on publically available information of ARW in its
evaluation of its acquisition of shares in ARW, the potential
inability to divest the ARW ordinary shares due to modest trading
volumes, the potential inability to divest the ordinary
shares LEC owns of TBF, the ability of ARW to market their products
overseas and to meet relevant regulatory requirements, the
estimated cost of any future TBF capital investment, the
fluctuation of biodiesel and feedstock prices on TBF, the effect on
TBF of changes in government policy relating to the environment,
and incentives for renewable fuels, the ability of TBF to generate
cash flow and pay dividends, and the ability of TBF to market their
products overseas and to meet relevant regulatory
requirements.
Many factors could cause LEC's actual
results, performance or achievements to be materially different
from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements or
information, including among other things, financial market
conditions which will impact LEC's ability to finance its
operations and to meet future capital and investment requirements,
the demand for the market price of liquid fuels including gasoline,
biodiesel, ethanol, the market price and demand for renewable
chemicals, risks relating to the protection of technology from
infringement and those risk factors which are discussed elsewhere
in documents that LEC files from time to time with securities and
other regulatory authorities. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements or information prove incorrect, actual
results may vary materially from those described herein as
intended, planned, anticipated, believed, estimated or expected.
Except as required by law, LEC expressly disclaims any intention or
obligation to update or revise any forward looking statements and
information whether as a result of new information, future events
or otherwise. All written and oral forward-looking statements and
information attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the foregoing cautionary
statements.
SOURCE Lignol Energy Corporation