Apr. 6, 2011 (TheNewswire.ca) --
Deal calls for initial minimum guarantee of 480,000 metric tons of PKS, annually
Vancouver, BC - April 6, 2011 - Viridis Energy (TSXV:VRD) (OOTC:VRDSF) ("Viridis")(TSXV: VRD, OTCQX: VRDSF) announced today that it has entered into a Letter of Intent with Heracles International Investment, Inc. ("Heracles"), (Pinyin translation: Heng Hui Kai Rui) to supply palm kernel shell (PKS) a natural pellet used for heating and co-firing with coal. The Letter of Intent specifies an "off-take" agreement that contractually will obligate Heracles to initially purchase a minimum of 40,000 metric tons (mt) or approximately $2.8 million of PKS per month from Viridis.
Palm kernel shells are the byproduct of palm plant processing through which palm oil is extracted. During the process, which the palm kernels are mechanically extracted from the shells, the shells are crushed rendering them a non-fossil, virgin biomass with a high calorific value. PKS have very low ash and sulphur content making it a high grade solid renewable fuel for burning.
Heracles International Investments, headquartered in Hong Kong, with branches in Canada, China and Singapore, has established an international business throughout East and South Asia (encompassing Korea, Japan, Thailand, Indonesia, the Philippines and the Peoples Republic of China), Europe and Africa over its 15 year history. With its success in the trading industry, Heracles diversified its business with investments in green energy, biomedical, mining and real estate.
Under the terms of the agreement, Heracles will serve as exclusive agent in the greater China area, which consists of mainland China, Taiwan, Hong Kong and Macao, for all the Viridis' biomass products. In return, Viridis will be the exclusive biomass supplier to Heracles in the greater China area. The initial term of the off-take agreement with Heracles is for one year, which is automatically renewed at the end of each year for an aggregate term length of 10 years. To support Viridis in overseeing this key project, it has secured the services of Dr. Chenguang Jiang who will serve as the Company's senior liaison and administrator of the business between Viridis and Heracles, facilitating the rapid expansion of biomass energy business in Asia. Dr. Chenguang, who received his doctorate in biological chemistry from University of British Columbia, is a senior researcher and development scientist in the biology and biomedical industry, with over 10 years of extensive and diversified experience.
"This pending agreement with Heracles will provide material progress in forwarding our diversification strategy into agri-biomass. Our proprietary biomass additives played a key role in Heracles' decision to partner with us," said Chris Robertson, Viridis' chief executive officer. "Based on Heracles' knowledge of the market for renewable energy in Asia and their extensive distribution and logistics capabilities, they expect their monthly demand may exceed the initial volume of 40,000 metric tons over time. The agreement is projected to generate gross revenue in the range of $2.8 million per month or $33.6 million over the first twelve months, from which Viridis expects to net approximately 10% to 15% after all costs."
About Viridis Energy Inc.
Viridis Energy Inc. (TSX: VRD-V) is a publicly traded, "cleantech" energy company specializing in the production and distribution of premium, softwood pellets, an alternative heating and energy source. Based in Vancouver, B.C., Viridis Energy operates Cypress Pacific Marketing whose primary business is wood pellets, an alternative energy source that is both renewable and available at lower costs, relative to traditional energy and heat sources. The Company has over 250 customers in North America and distributes four brands including its proprietary, leading brand Okangan Pellets™.
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 retain key management and employees, (6) ; an increase in the number of competitors with larger resources, and (7) 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 security 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.
--------------------------------------------------------------------- |Company contact: |Investor contact: | | | | |Michele Rebiere, CFO |Yvonne L. Zappulla, Managing Director| |Viridis Energy Inc. |Grannus Financial Advisors, Inc. | |Tel: 905 847 5226 |212-681-4108 | |email@example.com|Yvonne@GrannusFinancial.com | ---------------------------------------------------------------------
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