EVGI Reports EPS Sources 100,000 Tons of New Rapeseed Supply; Sees $70 Million in 12-Month Incremental Revenue
GROVELAND, Fla., Oct. 29, 2012 /PRNewswire/ -- Eco Ventures Group, Inc. (OTCBB: EVGI), an emerging producer of diversified sustainable alternative energy and resources, today announced Germany-based Energiepark Suptitz GmbH ("EPS") has established new rapeseed supply agreements with several farmers in Eastern Europe. The Company on August 7 reported it had signed a Definitive Agreement to acquire EPS.
The new, or expanded, supply agreements enable EPS to source more than 100,000 metric tons annually in additional rapeseed production from farmers in Germany and Eastern Europe. EPS processes the rapeseed in its mills, converting it into high quality rapeseed oil which it typically sells as biofuel feedstock, while selling the byproduct rapeseed cake to farmers who use it as nutritious feed for livestock.
The new rapeseed supply will generate about $70 million in incremental revenue -- with a gross margin of approximately 15 percent -- when converted to rapeseed oil and sold, depending on market conditions. EPS currently is taking delivery of the first 10,000 metric tons of new rapeseed. When processed, one metric ton of rapeseed yields approximately four tenths of one metric ton of rapeseed oil.
This new rapeseed supply is entirely separate, and the revenue incremental, to the EPS 15-month $121 million rapeseed oil sales contract with GGT Trading, announced on October 10. Under the terms of that contract, EPS is mixing its premium high grade rapeseed oil with GGT's low grade oil to produce a more valuable oil well suited to biofuel feedstock. Gross margins on the GGT contract are in a similar range to that of EPS' conversion of raw rapeseed to rapeseed oil.
"We have established relationships with many of these growers over the years, as they meet our high standards for quality control and reliability," said Matthias Tanzer, President of EPS. "Some of whom have recently supplied industry leaders including Bunge and ADM. We will continue to build our rapeseed supply pipeline while pursuing new rapeseed oil off-take sales contracts."
Randall Lanham, EVGI Chief Executive Officer, said, "EPS' dramatically increased rapeseed supply chain is impressive as it continues to compete -- and win -- against the largest companies in Europe while successfully executing on its business plan."
"I, and EVGI staff, were in Suptitz, Germany last week working closely with EPS bankers, suppliers, management and legal, evaluating financing term sheets and preparing for the transaction closing. In addition, we are meeting with European biofuel purchasing companies to line up future biofuel off-take purchase agreements for when we build and complete the EPS renewable bio-diesel fuel production facility in Suptitz slated for Q1 2014.
"That plant will constitute one of the few manufacturers of renewable diesel, or 'designer diesel' as it is commonly referred to in Europe," Mr. Lanham said. "This is the next evolution of bio-diesel, and EPS will be well positioned at its forefront in Germany, an industrial powerhouse known for its strong bio-diesel appetite."
About Eco Ventures Group
Eco Ventures Group, Inc. ("EVGI") is both acquiring and developing a portfolio of ecologically friendly businesses to provide renewable energy and related feedstock (www.ecoventuresgroup.com).
EPS is a diversified alternative energy feedstock, transportation, heat & solar power production company with approximately 50 employees -- whose primary business is the production, processing and brokering of alternative energy feedstocks including rapeseed, palm oil and wood. The acquisition combines two renewable energy companies whose technology, bio fuel and grid-tied energy products will create a diversified international platform with important operating synergies.
Safe Harbor Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: EVGI encourages those interested in our Company to rely only on information included in our filings with the United States Securities and Exchange Commission which can be found at www.sec.gov. Statements released by Eco Ventures Group, Inc. that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions, and strategies for the future to include all those of its intended acquisition of Energiepark Suptitz, GmbH. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental, and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q, and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.
Eco Ventures Group, Inc.
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Phone: (352) 557-4830
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SOURCE Eco Ventures Group, Inc.