Company Executes Purchase Offer and Tenders Initial Deposit of $250,000 as Initial Step to Purchase and Renovate Closed Florida Biofuel Facility for Enhanced Production of Environmentally Friendly Fuels and Products
WEST PALM BEACH, FL / ACCESSWIRE / August 16, 2017 / Alliance BioEnergy Plus, Inc. (OTCQB: ALLM) filed an 8K with the SEC disclosing that its subsidiary Alliance Bio-Products, Inc. ("Bio-Products") has entered into a material definitive agreement to purchase the closed ethanol facility in Indian River County, Florida, and has tendered an initial deposit of $250,000.
The Company received approval from the United States Department of Agriculture (USDA) Office of Rural Development ("USDA Rural Development") to move forward with the purchase in early July. The approved purchase, at a price of $8M, includes the fully functional plant, 144+ acres that the plant resides on, and all related equipment and vehicles.
The transaction is subject to due diligence of the facility and its major components as well as the negotiation and execution of a definitive purchase agreement and other transaction documents, as well as additional payments to be made in accordance with the terms of the purchase offer.
"We are pleased to take this initial step toward finalizing the purchase of the Indian River facility. The signed agreement and initial deposit signify our commitment to turning the plant into a positive asset for Indian River County by creating jobs and eliminating waste that would otherwise clog up landfills," said Daniel de Liege, Chairman of Alliance Bio-Products. "The purchase and subsequent renovation of this facility will allow us to produce sustainable biofuels at scale for mass commercial consumption, representing a significant revenue opportunity for our Company and positioning us at the forefront of the market. We look forward to completing the process and finalizing the purchase of the plant."
The Company made an offer to purchase the eight Million Gallon Per Year (8MMGY) ethanol facility with the intention of converting the current process into its patented Cellulose to Sugar (CTS) process under an agreement with Alliance BioEnergy. By renovating the plant and utilizing a state-of-the-art fermentation and distillation system already in place, and with an abundance of free feedstock available, Bio-Products believes it can increase production capacity and profitability of its sustainable, environmentally friendly alternative to petroleum-based fuels and other products. The plant also sits on a large parcel of land that would allow Bio-Products to expand as demand increases.
The Company's patented CTS process allows it to produce biofuels for less than $1 per gallon that are 100% CO2 neutral, because of the process, and have 85-95% less greenhouse gases than petroleum-based products. Bio-Products expects it will be able to begin production at the plant by summer of 2018, potentially generating $32 million in EBITDA and then will look to double capacity to 16 MMGY, potentially generating $64 million in EBITDA in 2020 before maximizing the capacity of 34 MMGY, generating $128 million in 2023.
The purchase of the plant is being funded through a mixture of debt and equity. The equity portion of the investment is being done via a 506(c) filing that is still open for investor consideration, in order to reduce as much debt as possible. For more information on that opportunity, please visit the offering page.
About Alliance Bio-Products, Inc.
Alliance Bio-Products, Inc. was formed as a special purpose wholly-owned subsidiary of Alliance BioEnergy Plus, Inc. ("ALLM") to own and operate Bioethanol plants in the United States.
Utilizing ALLM's patented CTS process Alliance intends to retrofit existing ethanol plants with the mechnocatalytic cellulosic conversion process, transforming them into profitable renewable energy centers that are carbon neutral, waste free and protecting our delicate environment while providing energy and high value co-products. The CTS process enjoys a family of patents centered around the main U.S. patent # 8,062,428. 2032.
Information in this document constitutes forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks, uncertainties and other factors are more fully discussed in the Company's filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to Alliance BioEnergy Plus, Inc herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Alliance BioEnergy Plus, Inc. disclaims any obligation to update forward-looking statements contained in this estimate, except as may be required by law.
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SOURCE: Alliance Bio-Products, Inc.