Cornell Capital Partners is infusing GreenShift Corporation (OTCBB: GSHF) with $22 million for it new AgriFuels division, GS AgriFuels, which will build a 45 million gallon per year biodiesel production facility.
“Cornell Capital is a great supporter of biofuels and renewable energy in general,” said Kevin Kreisler, Chairman and Chief Executive Officer of GreenShift.
GreenShift recently sold its wholly-owned subsidiary, Mean Green BioFuels, Inc., to another GreenShift subsidiary, Hugo International Telecom, Inc. (HGOT.OB) Hugo is an 80% owned subsidiary of GreenShift that has been inactive to date. Hugo will be re-named “GS AgriFuels Corporation” early next quarter in connection with these transactions.
Under the investment agreements, Cornell Capital will purchase 5% debentures in GS AgriFuels (Hugo) totaling $22 million that are convertible into GS AgriFuels (Hugo) common stock at a price of $3.00 per share. Cornell Capital provided an initial $5,500,000 of this amount at the closing, and will provide the balance of the investment in a series of tranches tied to GS AgriFuels’ satisfaction of key benchmarks in its development schedule.
About GS AgriFuels Corporation
GS AgriFuels intends to finance, build and operate several biodiesel production facilities in the U.S. The feedstock for these facilities will include corn oil derived from ethanol facilities, soybean oil, and animal fats.
GS AgriFuels is in a strategic alliance with GreenShift’s clean technology subsidiary, Veridium Corporation (VRDM.OB). GS AgriFuels has the right of first refusal to purchase Veridium’s various biodiesel feedstocks, including the high grade corn oil that Veridium extracts from an ethanol by-product called distillers dried grain (“DDG”) with Veridium’s patent-pending Corn Oil Extraction System(TM).
Veridium’s is developing a captive supply of DDG by providing its turn-key systems to ethanol facilities for no up-front cost in exchange for long-term corn oil purchase agreements that will afford Veridium a fixed discount to prevailing corn oil market prices. Veridium intends to purchase and sell its extracted corn oil as a high grade corn oil product until GS AgriFuels’ first biodiesel production facility commences operations, at which point GS AgriFuels will purchase the corn oil from Veridium based on a fixed discount to prevailing fuel prices.
Loading...