In Canada, Lignol Energy Corporation has agreed to acquire all of the outstanding and issued ordinary shares of Territory Biofuels Limited and thereby increase its ownership of TBF from 55% to 100%. TBF owns the largest biodiesel plant in Australia with an annual capacity of 140 million liters with plans to re-start operations in the second half of 2014.
LEC’s offer to acquire all of the 4,771,367 outstanding ordinary TBF shares owned by other TBF shareholders, in exchange for the issue of 2.5 LEC common shares for each TBF ordinary share, will result in the issue of an additional 11,928,419 common shares of LEC. LEC’s offer has been accepted by all of TBF’s remaining shareholders and is subject to TSX Venture Exchange approval. The closing of this acquisition is expected to be completed on or before January 31, 2014, at which time TBF will become a wholly owned subsidiary of LEC.
