Gulf Oil and Gas accountACCOUNT

Algae.Tec & RIIHL Deal to Launch Global Biofuels Division

Source: The Wall Street Journal 1/23/2014, Location: Asia

Algae.Tec Limited said the signing of agreements with Reliance Industrial Investments and Holdings (RIIHL) was the backing the Company needed to fund and launch its Global Biofuels Division.

Algae.Tec's enclosed algae growth technology system.

RIIHL is part of the Reliance Group, India's largest private sector enterprise.

The agreements encompass a subscription agreement, and technical and equipment supply agreements. These agreements also discuss conditions for future commercial algae plants, following the successful completion of the pilot plant.

The subscription agreement details the issue of $1.5m worth of shares and $5m of options to RIIHL with both the shares and option exercise price being set at the 90 day volume weighted average share price, which equates to 16.3 cents per share. The shares will be issued immediately and RIIHL will make additional investments by exercise of $1.2m of options over the next two years.

The technical and equipment supply agreements detail the technical goals that Algae.Tec will have to meet and the costs that RIIHL will pay for the pilot plant and technical supervision.

"This is a very exciting step forward by Algae.Tec stated Peter Hatfull, Algae.Tec's Managing Director. "The new Biofuels facility to be built in India, will be fully funded by Reliance Industrial Investments and Holdings Limited (RIIHL), leaving the equity injection to be used solely for working capital purposes"

"This level of financial backing and ongoing support is just what Algae.Tec needed."

"It's a fact of business life that emerging companies need funding injections and the technical grunt of this type to transition into the commercial phase."

"It's good news for Algae.Tec and the algae Biofuels sector."

The Algae.Tec Biofuels Division is operated out of the Atlanta facility through the Company's wholly owned subsidiary, Algae Energy Inc.

The vision is to work with this significant strategic partner Reliance for many years to come, deploying Algae.Tec growth platform technology to produce algae Biofuels in India and expanding through Asia to help meet increasing demand for fuels.

Algae.Tec recently announced expansion into the nutraceuticals market, which taps the fast growing demand for products like Spirulina and Chlorella. This Division is based in Nowra south of Sydney. "It is exciting to have two distinct divisions with strong strategic partners with both divisions participating in massive global markets" said Mr Hatfull.

Jet fuel News in India >>

Related Categories: Agents, Anti-foaming  Aromatic Solvents  Butene  Cleaning  Corrosion Inhibiting  Crude Oil  Diesel Fuel  Ethylene  Fluids Drilling, Completion, Workover & Stimulation  Fluids/Chemicals  Fracturing Sand  Fuel oil  Gasoline (Lead free)  General  Grout  Jet fuel  Kerosene. Domestic use  Lubricants, Oils & Greases  Nitrogen  Oil Treating & Refining  Polyethylene  Polyvinyl chloride  Propane  Sand, Sandblast  Summer Diesel  Surfactants 

Related Articles: Aromatic Solvents  Butene  Cleaning  Corrosion Inhibiting  Crude Oil  Diesel Fuel  Ethylene  Fluids Drilling, Completion, Workover & Stimulation  Fluids/Chemicals  Fracturing Sand  Fuel oil  Gasoline (Lead free)  General  Jet fuel  Kerosene. Domestic use  Lubricants, Oils & Greases  Nitrogen  Oil Treating & Refining  Polyethylene  Polyvinyl chloride  Propane  Sand, Sandblast  Surfactants 


India Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 |

More News

Related Links

Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.