M-Wave, Inc. (NASDAQ: MWAV) is acquiring biodiesel company SunFuels, Inc., and will operate under a new name, Blue Sun Holdings, Inc.
Jeff Probst, President and CEO of SunFuels said, “SunFuels is merging with M-Wave to meet expanding consumer demand for high-quality, premium-performance biodiesel fuel.”
SunFuels also completed a $10.125 million private placement of its Series A Convertible Preferred Stock. The Series A Convertible Preferred Stock is convertible into SunFuels Common Stock. M.A.G. Capital, LLC, a Los Angeles-based private investment firm, was the lead investor.
The company will use the capital to complete construction of biodiesel refinery assets aggregating 45 million gallons of biodiesel per year. They intend to begin construction of the first biodiesel refinery site at Clovis, New Mexico immediately and to continue to build out a vertically integrated business model, including the construction of oilseed crushing facilities and advanced biodiesel blending terminals.
About SunFuels, Inc. and Blue Sun Biodiesel LLC
Headquartered in Denver, SunFuels, through Blue Sun, is a vertically integrated agriculture-energy company and marketer of premium agricultural and renewable fuels products and is a leading biodiesel marketer in the Rocky Mountain States, including Colorado, New Mexico, and Wyoming, and in Ontario, Canada.
Blue Sun differentiates its products through proprietary oilseed crops, additives, quality assurance, blending, and distribution infrastructure. Blue Sun oilseed crop R&D and established farmer network, industry-leading QA/QC policies, retail pump network, and distributor network bring customers high and consistent quality diesel fuel. Blue Sun’s distribution network features its high-volume, advanced ratio blending terminals, which are fully automated and allow Blue Sun’s flagship product, Blue Sun Fusion”, to be transported via rail or truck throughout the Rocky Mountain region.
Blue Sun Fusion, Blue Sun’s flagship product, is currently distributed in 10 states including Colorado, New Mexico, Nebraska, Wyoming, Idaho, and Montana, and in Ontario, Canada. Blue Sun is seeking to expand its distribution network with 12 new authorized distributors that will expand distribution in new markets, including Arizona, California, Kansas, Texas, Nevada, Oregon, Washington, North Dakota, South Dakota, Oklahoma, and States east of the Mississippi river.
Blue Sun’s customers include Denver Public Schools, City and County of Denver, City of Colorado Springs, City of Fort Collins, City of Santa Fe, Durango Mountain Resort, Aspen Ski Company, New Belgium Brewing Company, Odell Brewing Company and PNM, a large public utility in New Mexico, among others.
For the year ended December 31, 2005, SunFuels generated consolidated revenues of $4.5 million and a consolidated net loss of $0.7 million (audited). For the 12 months ended September 30, 2006, SunFuels generated consolidated revenues of $6.9 million and a consolidated net loss of $0.2 million (unaudited).
Blue Sun’s website is located at www.gobluesun.com.
About M-Wave, Inc.
M-Wave provides supply chain services and sources printed circuit boards, custom electronic components and direct broadcasting satellite parts domestically and from Asia. M-Wave’s Electro-Mechanical Group division sources high-performance printed circuit boards and custom and engineered electronic components from original equipment manufacturers and contract manufacturers in Asia and the US. The products are used in a wide range of telecommunications and industrial electronics products. EMG also offers domestic and international supply chain services and annual forecast financing for its middle market customers.
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