19 Mar 2013, BioSpectrum Bureau , BioSpectrum
Singapore: Lignol Energy (LEC), a leading technology company in the advanced biofuels and renewable chemicals sector, has invested approximately $2.59 million (A$2.5 million) to acquire approximately 356 million shares of Australian Renewable Fuels (ARW) as a part of ARW's underwritten rights issue of approximately $8.29 million (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.
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 percent of ARW.
Mr Ross MacLachlan, chairman and CEO, said that, "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. 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."