The terms of the notes provide for conversion into an equity position for LEC of between 20 percent to 40 percent in TBF, depending on a range of criteria related to the development of the Darwin facility.
This investment will be funded, in part, from the Vancouver¸British, Columbia-based firm's recently announced line of credit with its major shareholder, Difference Capital Funding Inc. The terms of the Technology Collaboration Agreement provide for technical assistance from Lignol and its partners with respect to both the restart of the facility and the potential integration of new pretreatment technologies and catalysts to facilitate the processing of a broad range of low cost feedstocks.
“We are proud to be working with TBF on this important, large scale project”, said Ross MacLachlan, Chairman and CEO of LEC. “The Darwin plant is an impressive industrial facility and the TBF team has developed a compelling business model with strong commercial partnerships with which to become a major regional player in the biodiesel market in the Pacific Rim.
He added, "This transaction reinforces the commitment to our strategy of selective investments in energy related projects which have synergies with our Company and have the potential to generate near term cash flow.”
Chris Hart, Chairman of TBF described Lignol’s investment as an important step in the restart of the Darwin facility.
“Having toured the Lignol facilities and met with their scientists, engineers and partners, I am also confident that our new technology collaboration will assist in an efficient recommissioning of our project and lead to the implementation of advanced technologies that maximize plant performance,” he said.
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