Viridis Energy's Scotia Atlantic Biomass and Ekman & Co. Enter into a Sales and Marketing Agreement
25 July 2013 - 6:30AM
Access Wire
Agreement Covers Scotia's Total Production
Over 24-Month Period
Vancouver, BC - July 24, 2013 - Viridis
Energy Inc. ("Viridis" or the "Company") (TSXV: VRD) announced today that its wholly owned subsidiary,
Scotia Atlantic Biomass Company, Ltd. ("Scotia") has entered into
an agreement with Ekman & Co AB. ("Ekman"), one of the world's
oldest trading houses and wholesalers of forest products, under
which Ekman will serve as Scotia's exclusive worldwide agent to
market its entire wood pellet production. Under the terms of the
agreement, Ekman will provide Scotia with the best possible sales
opportunities at all times, including sales into different markets
and market segments. The agreement covers an initial period of 24
months and an aggregate projected wood pellet production of up to
240,000 metric tons.
Viridis purchased
Scotia, one of largest wood pellet manufacturer in Canada, in 2012.
Scotia's operation sits on a 157 acre property, including a 22 acre
wood lot. Scotia's production is expected to begin this month after
several months of refurbishing and calibrating operations. Its
proximity to shipping ports, in addition to the quality its
product, positions Scotia as a key supplier of wood pellets to
Europe where the demand for renewable energy sources, especially
from commercial energy suppliers, is fast growing.
Ekman,
founded in 1802 and based in Gothenburg, Sweden, specializes in all
facets of the supply chain of forest related products, including
sales, distribution, infrastructure support and financial services,
such as insurance, trade financing, credit and interest rate risk
and currency hedging. With revenue exceeding $2.3 billion and
assets nearing $300 million, Ekman maintains 40 offices in 24
countries throughout Europe, the Middle East, North and South
America, Asia and the Pacific Rim.
Commenting on the
agreement, Christopher Robertson, Viridis Energy's CEO, said, "The
re-opening of the Scotia operations is a significant accomplishment
towards achieving our goal of 1,000,000 metric ton capacity. We
received outstanding cooperation and support from local Nova Scotia
authorities and vendors to reach this point." Mr. Robertson
continued, "Partnering with one of the world's foremost forestry
industry experts for the off-take production of our Scotia
operations has given us a high level of confidence in the growth
prospects of the wood pellet market. Ekman has built an excellent
reputation over its 210 year history as a 'go to' service provider
and authority in the paper and pulp industries. We look forward to
building a mutually beneficial relationship with such a value-added
partner."
Jan Svensson, Ekman
Group's chief executive officer, added, "Ekman prides itself for
being able to identify opportunities in shifting global market
conditions. Our focus on forest products has provided us with a
dynamic medium through which we can react to evolutionary trends
and use our organizational skills to add value to the supply chain.
Working with seasoned, wood pellet professionals like Viridis is a
natural progression for Ekman to further pioneer forest products as
a sustainable, renewable resource."
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|Company Contact: Michele | Johan Granath | |
|Rebiere Chief Financial |Senior VP Bioenergy| |
|Officer Viridis Energy Inc |Ekman & Co +46 703 | |
|905-847-5226 |49 5527 | |
|investorinfo@viridisenergy.ca|info@ekmangroup.com| |
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About Viridis Energy Inc.
Viridis Energy Inc. (TSXV: VRD) is a
publicly traded, "Cleantech" alternative energy company
specializing in the agricultural and wood waste biomass. Located in
Vancouver, B.C., Viridis Energy operates Cypress Pacific Marketing,
Okanagan Pellet Company and Scotia Atlantic Biomass, thus providing
the company with vertical integration for distribution and
manufacturing as well as coast to coast national presence. For more
information on Viridis Energy Inc. please refer to the company
website at www.viridisenergy.ca.
Forward-looking
Statements
Certain statements in this release are forward-looking statements,
which reflect the expectations of management regarding the
Company's future operations. Forward-looking statements consist of
statements that are not purely historical, including any statements
regarding beliefs, plans, expectations or intentions regarding the
future. Such statements are subject to risks and uncertainties that
may cause actual results, performance or developments to differ
materially from those contained in the statements. No assurance can
be given that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the
Company will obtain from them. These forward-looking statements
reflect management's current views and are based on certain
expectations, estimates and assumptions which may prove to be
incorrect. A number of risks and uncertainties could cause our
actual results to differ materially from those expressed or implied
by the forward-looking statements, including: (1) a continued
downturn in general economic conditions in North America and
internationally, (2) the inherent uncertainties associated with the
demand for biofuels, (3) the risk that the Company does not execute
its business plan, (4) inability to finance operations and growth
(5) inability to finance the start-up operations in Nova Scotia in
a timely manner (6) inability to retain key management and
employees, (7) an increase in the number of competitors with larger
resources, and (8) other factors beyond the Company's control.
These forward-looking statements are made as of the date of this
news release and the Company intends to update such forward looking
information in the Company's MD&A in the event that actual
results differ materially from such forward-looking statements
contained herein. Additional information about these and other
assumptions, risks and uncertainties are set out in the "Risks and
Uncertainties" section in the Company's MD&A filed with
Canadian securities regulators.
Neither
the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
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