Canadian Lignol to raise stake in Australian Renewable Fuels
Oct 15, 2012 - Canadian biorefining technology company Lignol Energy Corp (CVE:LEC) today said it had agreed to increase its stake in biodiesel producer Australian Renewable Fuels Ltd (ASX:ARW) to 14.9% from 11.2%.
Under the agreement, Lignol will acquire additional 88 million common shares in the Australian company for a total price of CAD 1.1 million (USD 1.1m/EUR 868,000), of which CAD 225,000 to be paid in cash and the rest via 7 million Lignol common shares issued at CAD 0.125 apiece. The transaction needs regulatory approvals and is expected to be closed on or about November 6, Lignol said.
Australian Renewable Fuels has three biodiesel plants with total output capacity of 150 million litres of biodiesel per year.
Lignol also considers investments in energy related projects that have synergies with its biorefining technology, it added.