Viridis Energy's Scotia Atlantic Plant Receives 50,000 Tonne Order
Vancouver, BC / ACCESSWIRE / October 1, 2014 / Viridis Energy Inc. ("Viridis" or the "Company") (TSXV: VRD (OTC: VRDSF)), announced today that its wholly owned subsidiary, Viridis Merchants Canada Ltd, an aggregation and trading service of wood pellets, has secured an additional 45,000 tonnes of wood pellets per year over the next two years from a western Canadian manufacturer to augment the Company's current production capacity. The additional wood pellets are expected to be available in October 2014 and will be sold to Viridis' existing customers in the U.S. and South Korea, which will support a greater expansion into Southeast Asia. Viridis projects the added supply will generate a minimum of $21 million over the initial two year term of the agreement, depending on the producer's ramp-up.
The initial term of the supply agreement runs from September 2014 to December 2016, with an automatic renewal for an additional 12-month period. The agreement also provides for an additional 15,000 tonnes of EN Plus A1 quality wood pellets per year. The agreement extension plus the potential additional 15,000 tonnes of pellet supply could increase the potential revenue over the full term of the agreement to a total of $40 million.
Commenting on the Viridis Merchants transaction, Christopher Robertson, Viridis' CEO said, "As we continue to increase our organic production capacity, Viridis Merchants' transactions has supplemented this growth, creating an overall total wood pellet manufactured and aggregated capacity of over 300,000 tonnes annually. Viridis is well on its way to reaching its goal of one million tonnes over the next couple of years."
In addition, Viridis announced that its Scotia Atlantic facility has received an order from a large European utility company for 50,000 tonnes of wood pellets to be shipped by March 31, 2015. The order, facilitated by Ekman, the Company's distributor, calls for a higher quality industrial pellet than previously shipped by Viridis. Mr. Robertson added, "As wood pellet demand continues to increase, we are visibly noticing that pricing for pellets is strengthening in Europe."
Viridis Investor Contact:
Yvonne L. Zappulla
Managing Director
Grannus Financial Advisors, Inc.
212-681-4108
Company Contact:
Michele Rebiere
Chief Financial Officer
Viridis Energy Inc
905-847-5226
About Viridis Energy Inc.
Viridis Energy Inc. (TSXV:VRD) (OTC:VRDSF) is a publicly traded, "Cleantech" manufacturer and distributor of renewable energy providing wood waste biomass fuel to global residential and industrial markets. Located in Vancouver, B.C., Viridis Energy Inc. operates Viridis Merchants (Canada) Ltd., Okanagan Pellet Company Ltd., Scotia Atlantic Biomass Company Limited and Viridis Merchants Inc., thus providing the company with vertical integration for distribution and manufacturing as well as coast to coast national presence. 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 finance the start-up operations in Nova Scotia in a timely manner (6) inability to retain key management and employees, (7) an increase in the number of competitors with larger resources, and (8) 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 securities regulators.
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SOURCE: Viridis Energy Inc.