Nova Biosource Fuels, Inc. (OTCBB: NVBF) announced a private placement totaling $43.9 million. The company is selling 24.4 million shares of stock and warrants to purchase up to approximately 7.3 million additional shares at $1.93 per unit. The warrants have a five-year term and an exercise price of $2.72 per share.
The private placement is expected to close on Thursday, December 21, 2006. Nova intends to use the net proceeds for working capital and for capital and operating expenditures in the pursuit of its business strategy to build and operate two to four biodiesel refineries with a production capacity of between 120 to 240 million gallons of biodiesel fuel per year.
About Nova Biosource Fuels, Inc.
Nova Biosource Fuels, Inc. uses a proprietary, low-cost manufacturing process to turn waste and oils into biodiesle. Nova’s business strategy for the next three years includes the construction of up to seven biodiesel refineries with production capacities ranging from 20 to 60 million gallons each per year.
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