Sep 26, 2012 - US EarthBlock Technologies Inc (PINK:EBLC) yesterday said its board had authorised the president to close the takeover of Earth Gen-Biofuel Inc, a supplier of castor beans used as feedstock for biofuel production.
Under the terms of the share swap transaction, EarthBlock has to issue some 1.5 million common shares in exchange for all of the stock of Earth Gen-Biofuel.
EarthBlock, which provides building products and technologies, said that the deal gave it new business opportunities and enabled it to expand into new markets. Already, EarthBlock has partnered with Earth Gen-Biofuels in seeking construction projects in Latin America and southeastern Asia, it said.
Earth Gen-Biofuel will keep its name and will operate as a wholly-owned unit of EarthBlock, which plans to operate as a holding company for its units.
The target company has agreed to develop and manage two agricultural projects in Vietnam and Laos for growing castor beans to be used to produce vegetable oil for the biofuel sector. Under the agreement, Earth Gen-Biofuel will provide seed-stock, planting and harvesting equipment, along with transportation and farming management for the projects and marketing expertise to sell the crop, while the governments of the two countries will provide land and pay the local workforce. Earth Gen-Biofuel will buy the production at a fixed price below the global market price.
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