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.
Original post available here.
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