Lignol Provides Additional Funding to Obtain Majority Interest in Territory Biofuels
Date Posted: May 6, 2013
Vancouver—Lignol Energy Corporation (TSXV: LEC) ("LEC" or "the Company"), a leading technology company in the advanced biofuels and renewable chemicals sectors, announced May 6 that it has provided a A$500,000 loan to Territory Biofuels Limited ("TBF"), in exchange for receiving 2.5 million stock options from TBF, making LEC the majority shareholder of TBF, on a fully diluted basis with a 51.9% shareholding.
LEC has provided an interest free, non-recourse loan to TBF in the principal amount of A$500,000 which is repayable on January 15, 2014 (the "Loan").
In consideration for LEC providing the Loan, TBF will issue common stock options to LEC exercisable up until June 15, 2015 (the "TBF Options").
The issuance of the TBF Options are subject to certain undertakings by LEC, which are expected to be fulfilled on or before May 15, 2013.
Further to the Company's news release dated April 17, 2013, the convertible notes with a principle value of A$1.18 million held by the Company and issued by TBF were converted into common shares, which made LEC the largest shareholder in TBF with a 40% fully diluted equity stake at that time.
With the issuance of the additional TBF Options, LEC is expected to have a projected 51.9% stake on a fully diluted basis.
For more information, call 604-453-1241.
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