Algae.Tec's $5m capital raising well supported by investors
Australian renewable oil company Algae.Tec (ASX: AEB, FWB: GZA:GR, ALGXY: US) has signed milestone agreements recently in China and in Europe with Lufthansa, the A$5m capital raising was well received by the market.
Last week an agreement was signed with Shandong Kerui Group Holding to build the first biofuels and carbon capture facility in China.
The company is now well funded for 2012 and continues to talk to groups about potential off-take agreements.
Algae.Tec has recommenced trading this morning after the
successful completion of a A$5 million placement to sophisticated
investors through Patersons Securities.
The placement is
comprised of 12.5 million shares at $0.40, with the issue also including
attaching options of one for every two shares, which an exercise price
of $0.75 in early 2014.
Roger Stroud, chairman, commented on the positive news and strong endorsement from the investment community:
"This
again demonstrates that sophisticated investors are aligned with the
need for alternative transport fuel technologies such as Algae.Tec
enclosed algae to biofuels solution."
Another positve for
Algae.Tec is that the market continues to respond to the company's
recent milestones including the signing of major deals with companies in
China, Sri Lanka and Europe.
Stroud added, "Algae.Tec also
offers a profitable solution for carbon emitting companies and
industries seeking carbon dioxide reduction technologies."
Milestone signed with Shandong Kerui Group Holding
Highlighting
how quickly Algae.Tec is on the move, and by the way the company was
one of the best performing IPO's on the ASX during 2011, just last week a
deal was signed with Shandong Kerui Group Holding to build the first
biofuels and carbon capture facility in China.
The memorandum of
understanding is for a 50:50 equity joint venture, which shows very
strong commitment from the group, as China moves towards reducing
pollution and carbon as part of its current five year plan from
2011-2015, with a pledge to reduce the amount of carbon emitted per unit
of gross domestic product by 40% by 2020.
The 250-module
biofuels facility will be built in Dongying, in Shandong Province, and
will produce about 33 million litres of algae derived transport oil and
33,000 tonnes of biomass per annum at a combined value of over $40
million. It will capture 137,000 tonnes of waste carbon dioxide.
The
joint venture will also look to secure funding, following completion of
the 250-module plant to build new projects exceeding 1,000 modules and
engage with carbon dioxide emitters in the greater China region.
Stroud outlines the forward plans for Algae.Tec
Recently Stroud told Proactive Investors how Agae.Tec continues to look for, and enter into, global alliances:
“We
intend to continue to talk to groups about offtake agreements, about
supply and obviously more joint venture arrangements of a country-wide
nature,” he said.
“In other words, with China, this joint
venture (Shandong Kerui Group Holding) is with the group for the whole
of China. So we will want to do the same thing in the U.S., the same
thing in Australia and the same thing in Brazil.”
Milestone signed with Lufthansa
Last
month Algae.Tec signed a biofuels memorandum of understanding with the
European airline Lufthansa, and announced a biofuels production and
carbon capture deal with the Sri Lanka subsidiary of industrial giant
Holcim.
The Algae.Tec solution is less than one tenth the land
footprint of pond growth options, while its enclosed module system is
designed to produce algae biomass in virtually any environment.
The
system is designed to deliver the highest yield of algae per hectare
and, importantly, does not require the use of food producing land for
biofuel production.
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