LONDON, United Kingdom, Dec. 16 /PRNewswire/ - 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 financings.
"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.