Lignol Energy Corporation increases its stake in Australian Renewable Fuels Limited
Thursday, Mar 21, 2013
VANCOUVER, March 18, 2013 /CNW/ -Lignol Energy Corporation (TSXV: LEC) ("LEC" or "the Company"), a leading technology company in the advanced biofuels and renewable chemicals sector, today announced that it has invested approximately A$2.5 million to acquire approximately 356 million shares of Australian Renewable Fuels Limited (ASX: ARW) ("ARW") as a part of ARW's underwritten rights issue of approximately A$8 million. This investment was funded, in part, from LEC's recently announced line of credit with one of the Company's major shareholders, Difference Capital Funding Inc. This investment together with the approximately 179 million shares acquired by LEC as a part of ARW's share placement, announced on February 12, 2013, and shares previously acquired by LEC has resulted in a total ownership of approximately 898 million shares, representing 21.4% of ARW.
"We are pleased to have participated in the private placement, the shareholder entitlement offer, and to have supported ARW through the related underwriting to become one of ARW's largest shareholders." said Ross MacLachlan, Chairman and CEO. "As a result of our recent investments, LEC is now well positioned in the Australian biodiesel industry. These investments are further evidence of our strategy of acquiring interests in companies which have synergy with our company and have the potential to generate near term cash flow."
About Lignol Energy Corporation ("LEC")
LEC (TSXV: LEC) owns 100% of the issued and voting shares of Lignol Innovations Ltd. ("LIL") and has interests in Australian Renewable Fuels Limited (ASX: ARW) ("ARW") as well as Territory Biofuels Limited ("TBF"). LEC also 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.
LIL is a leading technology company in the advanced biofuels and renewable chemicals sector undertaking the development of biorefining technologies for the production of advanced biofuels, including fuel-grade ethanol, and other renewable chemicals from non-food cellulosic biomass feedstocks. LIL's modified solvent based pre-treatment technology facilitates the rapid, high-yield conversion of cellulose to ethanol and the production of value-added biochemical co-products, including high purity HP-LTM lignin. HP-LTM lignin represents a new class of high purity lignin extractives (and their subsequent derivatives) which can be engineered to meet the chemical properties and functional requirements of a range of industrial applications that until now has not been possible with traditional lignin by-products generated from other processes. LIL is executing on its development plan through strategic partnerships to further develop and integrate its core technologies on a commercial scale. For more information please visit LEC's website at www.lignol.ca.
SOURCE Lignol Energy Corporation