BIOX comments on the passage of the U.S. Federal Excise Tax incentive for biodiesel
TSX symbol: BX
TORONTO, Jan. 3, 2013 /CNW/ - BIOX Corporation (BIOX) (TSX: BX), a renewable energy company that designs, builds, owns and operates biodiesel production facilities, commented today on the recent passage by Congress of the U.S. Federal Excise Tax incentive, referred to as the biodiesel tax incentive. The biodiesel tax incentive is part of a larger legislative package titled, "The American Taxpayer Relief Act of 2012." The United States Senate and House of Representatives passed the Act in separate votes held on January 1, 2013, and the President of the United States is expected to sign the bill into law shortly. The Act includes provisions for the reinstatement of the biodiesel tax incentive through to December 31, 2013 and it also makes the incentive retroactive to January 1, 2012.
"The retroactive reinstatement and extension of the biodiesel tax incentive through to the end of 2013 provides greater certainty for producers, refiners and importers," said Kevin Norton, Chief Executive Officer of BIOX Corp. "The passage of this legislation is significant to BIOX as the retroactive clause allows us to recognize approximately Cdn$7 million in contingent revenue on product sold during calendar 2012, which will strengthen our earnings and cash position as part of the fiscal Q2 2013 reporting period. Extending the tax incentive through 2013 also allows us to capture additional value on product sold in the U.S. market."
The biodiesel tax incentive provides parties that blend biodiesel with petroleum diesel with a US$1.00 refundable tax credit for each U.S. gallon of biodiesel blended in the U.S.
About BIOX Corporation
BIOX is a renewable energy company that designs, builds, owns and operates biodiesel production facilities. BIOX currently owns and operates a biodiesel production facility in Hamilton, Ontario, Canada with a nameplate capacity of 67 million litres per year. BIOX has an innovative, proprietary and patented production process that is capable of producing the highest quality, renewable, clean burning and biodegradable biodiesel fuel utilizing a variety of feedstocks - from pure seed oils to animal fats to recovered vegetable oils with no change to the production process. BIOX's high quality biodiesel fuel meets North American (ASTM D-6751) quality standards. BIOX is Canada's largest biodiesel producer and is focused on building, owning and operating a network of commercial scale biodiesel production facilities in jurisdictions where clearly defined renewable fuel standards policies exist.
Certain statements in this press release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of BIOX, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. Such statements relate to, among other things, the resumption of biodiesel production at BIOX's Hamilton facility, the impact of the extension of the biodiesel tax incentive in 2013, that the proposed legislation will be signed into law and BIOX's long-term expectations for the biodiesel market in light of current market conditions. These statements reflect BIOX's current views regarding future events and operating performance, are based on information currently available to BIOX, and speak only as of the date of this press release. These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the fact that BIOX's results of operations and business outlook are highly dependent on a mix of legislation and producer payment programs and tax credits and upon commodity prices, which are subject to significant volatility and uncertainty. Many factors could cause the actual results, performance or achievements of BIOX to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including factors described in this press release and those discussed in BIOX's publicly available disclosure documents, as filed by BIOX on SEDAR (www.sedar.com) except as updated herein. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, BIOX does not intend and does not assume any obligation to update these forward-looking statements.
SOURCE: BIOX CorporationFor further information:
Executive Vice President & CFO
Phone: (905) 337-4970
Phone: (416) 815-0700 ext. 238