Press release from TheNewswire.ca
Viridis Energy announces Non-Brokered Private Placement for Retirement of Debt
Friday, June 22, 2012
Vancouver, BC - June 22, 2012 - Viridis Energy Inc. ("Viridis" or the "Company") (TSXV: VRD), a "Cleantech" manufacturer and distributor of alternative energy providing waste biomass fuel to global residential and industrial markets, today reported a non-brokered private placement for 2,000,000 units of the Company at a price of $0.25 per unit generating gross proceeds of $500,000 (the "Private Placement"), which will be used to retire debt incurred for the acquisition of Okanagan Pellet Company Inc. ("Okanagan Pellet"), a wholly-owned subsidiary of the Company.
Each unit consists of one share of the Company's common stock and one non-transferable share purchase warrant. Each warrant entitles the holder to purchase one share of Viridis common stock at an exercise price of $0.35 per share for a period of 5 years from issuance. In the event that the average trading price of Viridis' common shares is $1.05 or greater for a period of 30 consecutive days following the completion of the Private Placement, Viridis may, in its sole discretion, provide written notice to the holders of the warrants of its intention to reduce the exercise period to 30 days from the date of such notice (subject to the terms and conditions of the warrants).
The use of proceeds of the Private Placement will be to satisfy the final principal payment of $500,000 of the vendor take back loans associated with the Company's acquisition of Okanagan Pellet, April 30, 2010. The Company anticipates announcing the closing of the Private Placement by June 29, 2012.
All securities issued pursuant to the Private Placement are subject to a holding period which expires on the date that is four months and one day after the closing of the Private Placement. The Private Placement is subject to the acceptance for filing of the TSX Venture Exchange. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in a jurisdiction in which such an offer, solicitation or sale would be unlawful.
Yvonne L. Zappulla
Grannus Financial Advisors, Inc.
Chief Financial Officer
Viridis Energy Inc
Viridis Energy Inc. (TSXV: VRD) is a publicly traded, "Cleantech" alternative energy company specializing in wood biomass. Headquartered in Vancouver, B.C., Viridis Energy operates Cypress Pacific Marketing, Okanagan Pellet Company and Scotia Atlantic Biomass, thus providing the company with vertical integration for distribution and manufacturing as well as coast to coast national presence. For more information on Viridis Energy Inc. please refer to the company website at www.viridisenergy.ca.
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future operations. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a continued downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties associated with the demand for biofuels, (3) the risk that the Company does not execute its business plan, (4) inability to finance operations and growth (5) inability to finance the start-up operations in Nova Scotia in a timely manner (6) inability to retain key management and employees, (7) an increase in the number of competitors with larger resources, and (8) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and the Company intends to update such forward looking information in the Company's MD&A in the event that actual results differ materially from such forward-looking statements contained herein. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian securities regulators.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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