Viridis Energy Receives $3,750,000 from Exercise of Warrants
04 April 2014 - 2:14AM
Access Wire
VANCOUVER, BC / ACCESSWIRE / April 3, 2014 - Viridis Energy Inc.
("Viridis" or the "Company") (TSXV: VRD), a "Cleantech"
manufacturer and distributor of renewable energy providing waste
biomass fuel to global residential and industrial markets,
announced today that on March 31, 2014, Cornwall Investments LLC
("Cornwall") exercised 25,000,000 of its Viridis Energy common
share purchase warrants at a price of $0.15 per share, generating
proceeds of $3,750,000. The amount of warrants exercised was an
increase from the 15,000,000 warrants the Company had previously
indicated on a March 4, 2014 press release that Cornwall had
intended to exercise.
The Company also reported that it used the proceeds from the
Royal Bank of Canada 6% term loan secured last month to repay the
$3.3 million loan owed by its Okanagan Pellet Company subsidiary to
Cornwall prior to the target date of October 2014. As a result,
847,000 shares of Viridis common stock previously held in escrow
for possible future release to Cornwall as a condition of the loan
were released back to the Company's treasury account from
escrow.
The shares purchased through the warrant exercise increases
Cornwall's holdings of the Company's common stock to 104,488,376
shares, or 75% of the current shares outstanding of 138,451,883.
Viridis' fully diluted shares total 149,527,369, inclusive of all
options (average exercise price of $0.27) and warrants (average
exercise price $0.22), which if exercised would generate
approximately $2.4 million in additional capital to the
Company.
Commenting on the transaction, Robert Aaron, Chairman of the
Board of Viridis Energy and CEO of Gilwern Associates, an advisor
to Cornwall Investments LLC, said, "The worldwide transition
towards renewable energy sources has created a strong and growing
demand for wood pellets, especially the superior quality wood
pellets produced by Viridis. Our management team is replicating the
efficiencies developed in the Okanagan Pellet plant in British
Columbia into our recently reactivated plant in Nova Scotia.
Cornwall is confident that the early exercise of its $0.15 warrant
will provide growth capital the company can utilize to continue its
expansion of both its production and merchanting capabilities."
Viridis Investor Contact:
Yvonne L. Zappulla
Managing Director
Grannus Financial Advisors, Inc.
212-681-4108
Company Contact:
Michele Rebiere
Chief Financial Officer
Viridis Energy Inc
905-847-5226
investorinfo@viridisenergy.ca
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.
SOURCE: Viridis Energy Inc.
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