NEWS
Viridis Energy acquires Major North American Biofuels Distributor
August 24, 2009Viridis Energy Inc. (TSXV:VRD) announced today that it has entered into a stock purchase agreement with Cypress Pacific Marketing, a Vancouver-based private company specializing in the distribution of premium softwood pellets. In a stock transaction valued at $2.8 million, the agreement calls for the purchase of all the outstanding shares of Cypress Pacific at a price of $0.50 per share, for an aggregate total of 5.6 million Viridis shares. The transaction resulted from an arm's length negotiation by the board of directors of the two companies.
Wood pellets are one of the new biofuels being adopted by the alternative energy industry. They provide a "green", environmentally friendly solution for both the domestic and industrial heating markets. The global wood pellet industry is forecast to grow to $130.5 billion over the next five years. Canada is currently the world's second largest exporter of wood pellets.
"The acquisition of Cypress Pacific Marketing is key to Viridis' ongoing strategic plan to be a significant player in the expanding biofuels sector in Canada," said Robert Gardner, Chairman of Viridis Energy Inc.
Cypress Pacific Marketing ended fiscal year 2009 in February with over $6 million (CAD) in revenue and EBITDA of approximately $650,000. The company's primary business is wood pellet distribution to small and mid-sized hardware stores in the U.S. and Canada. Cypress distributes a high quality softwood pellet under three separate brand names, including Okanagan Pellets™, Clean Burn™ and Dragon Mountain™.
Cypress Pacific has grown rapidly over the past four years and has funded its growth assisted by its fiscal discipline. The company's revenue was approximately $1 million in 2006 and has since grown to approximately $2 million, $4 million and $6 million respectively into 2009.
Chris Robertson, chief executive officer of Cypress Pacific Marketing comments: "With this acquisition, Viridis will have the ability to emerge as a leader in the Canadian wood pellet distribution sector, and to seriously expand this profitable business in the green energy sector.
This acquisition is subject to Viridis receiving the approval of the TSX Venture Exchange and meeting its requirements, which may include obtaining shareholder approval. For further information, please contact Alphonse Placktis, Chief Financial Officer, Viridis Energy at 604 568-8815 or email [email protected]
About Viridis Energy Inc.Viridis Energy Inc. (TSX: VRD-V) is a publicly traded company located in Vancouver, B.C. 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 retain key management and employees, (6) ; an increase in the number of competitors with larger resources, and (7) 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 security regulators.
Neither 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.
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