Texas-based company to acquire biodiesel plants in Florida, North Carolina
Frisco, Texas-based Verde Bio Holdings Inc. has executed a letter of intent to acquire two U.S. biodiesel plants.
One facility is Triangle Biofuels Industries Inc.’s 5 mgy plant in Wilson, North Carolina. The facility was appraised at $16.6 million, according to Verde, which plans to acquire it for the purchase price of just $3 million. After the acquisition, Verde intends to invest in the biodiesel refinery to boost production capacity to 6 mgy.
The other plant is located in Fort Myers, Florida, which, according to the company, can produce 5 million gallons a year (mgy) of biodiesel from soybean oil. Verde said the plant was appraised at $11.6 million but would only pay $4 million for the acquisition. Biobased Diesel Daily requested confirmation from Verde on the name of the plant it was acquiring in Florida, but the company has not responded yet.
The biodiesel ventures will operate as a wholly owned subsidiary of Verde Bio Holdings, the company stated, adding that it expects them to be in production within 90 days of closing. To help finance the acquisitions, Verde has entered into a preferred financing agreement with GHS Investments LLC for $1 million.
“While oil and gas remain Verde’s foundation and key part of the company’s asset base and cashflow, Verde is expanding its focus on alternative energy investments and investments in present and future changes in the energy markets,” said Scott Cox, Verde Bio Holdings founder and CEO. “The biodiesel acquisitions more than triples our assets and once producing will increase our cash flow significantly while diversifying our revenue streams so that Verde is not solely exposed to the volatility of oil and gas.”