LONDON, United Kingdom, Dec. 16 /CNW/ - Four Rivers BioEnergy Inc. (OCTBB: FRBE & OTCQB: FRBE) ("4Rivers''
or "Four Rivers" or "the Company") today announced that it had entered into a contract to sell
approximately 220 acres of its land in Kentucky for $1,500,000. This
transaction will bring approximately $900,000 of cash into the Company
after paying costs, taxes and redeeming a mortgage for $500,000. This
sale reduces the amount of investment needed to implement Four Rivers'
core strategy and strengthens liquidity in its balance sheet, allowing
it to continue plant development in the UK ahead of any external
"We are delighted with securing this transaction, which strengthens our
liquidity through the sale of non-core assets," commented Stephen
Padgett, Four Rivers' Chief Executive Officer, "and we're also pleased
to have achieved such a level of consideration, especially in view of
the current US real estate market. The cash injection of approximately
$900,000 will reduce the amount of finance to be raised through equity
and equity type instruments to enable us to commence production of
renewable electricity at the UK site. The funds raised will primarily
be used to continue our progress on the final stages of plant
development ahead of closing our planned financings."
This sale is part of the Company's ongoing strategy to streamline
operations and dispose of non-core assets to realise cash for
investment into its first waste-to-energy production facility. The
Company has now realised total cash of approximately $4 million from
the sale of non-core assets.
Meanwhile, the Company retains 217 acres of its Calvert City, Kentucky
land, which is comprised of prime areas of river frontage and land with
a high industrial development potential. The Company is currently
evaluating options for this land, which may include using it as partial
security to underpin a future financing and potentially using the site,
or part of it, to build a second waste-to-energy facility.
About Four Rivers BioEnergy Inc.
Four Rivers BioEnergy Inc. is focused on realizing the potential to
produce and sell energy (in the form of electricity) from sustainable
waste and renewable feedstocks. We operate under the trade name "Verta Energy". Our business model involves the vertical integration of the energy
production cycle from feedstock procurement and processing through to
electricity generation and sale, all within one business model and on
integrated industrial sites. We are presently in the final phases of
completing our first Integrated Waste to Energy Plant on an industrial
site in the UK which we acquired in 2009.
To find out more about Four Rivers BioEnergy Inc (OTCBB: FRBE), visit
our website at http://www.riv4ers.com.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
statements are based on management's good faith views and expectations
when made. Forward-looking statements are inherently subject to known
and unknown risks and uncertainties which, in the case of the company,
include raising adequate capital to continue operations, technology and
product development uncertainties, competition, cost and availability
of feedstock, and plant development and manufacturing scale up. Actual
results may differ, perhaps materially, from those discussed in the
forward-looking statements. The company discussed in this release is
not obligated to update its forward-looking statements or comment on
those differences. Readers are encouraged to refer to the recent public
filings of the company to further ascertain the risks associated with
the forward-looking statements. Readers are urged not to place undue
reliance upon such statements.
SOURCE Four Rivers BioEnergy Company Inc.
For further information:
Stephen Padgett, Chief Executive Officer
Tel: +44 (0)1642 674085
Fax: +44 (0)1642 674415
Martin Thorp, Chief Financial Officer
Tel +44 207 499 1730
Fax: +44 (0)1642 674415
PR Financial Marketing LLC
Tel: +1 713-256-0369
Corporate Profile, LLC
Tel +1 646 810 0608
Alvaro Novillo, Spanish Investor Relations
Tel +34 664 408 206