CALGARY, AB, March 3, 2021 /CNW/ – Canary Biofuels Inc. (“Canary” or the “Company“) is pleased to announce the following transactions (collectively the “Transactions“):
- Completion of a $16.5 million non-brokered private placement equity financing (the “Financing“);
- Closing of the acquisition of Invigor Bioenergy Corporation (the “Acquisition“), which owns a biodiesel facility in Alberta (the “Biodiesel Facility“); and
- Entering into an agreement with Canadian Western Bank (“CWB“) providing for a credit facility with $7 million of borrowing capacity.
With completion of the Transactions, Canary will leverage the best of Western Canadian expertise in both agriculture and energy to create an industry leading biodiesel production company. Canary will use proceeds from the Financing to convert the Biodiesel Facility (the “Conversion“), such that phase 1 of the facility will have capacity to produce 75 million litres of second-generation biodiesel using agricultural waste feedstock. By using waste products, Canary will provide additional sources of revenue to local western Canadian agricultural producers, with the added benefit of producing a high demand energy product that will reduce carbon emissions at scale. Canary intends to have the Biodiesel Facility producing at full capacity by year end.
Canary has completed a non-brokered private placement of 16.5 million common shares at $1.00 per share for total gross proceeds of approximately $16.5 million. Due to strong demand, from a combination of strategic investors (including feedstock suppliers), global institutional investors and retail investors, the Financing was increased from its initial target of $10 million. The net proceeds of the Financing shall be used to fund the cash purchase price of the Acquisition, the Conversion, working capital and general corporate purposes.
George Wadsworth, President and CEO of Canary, stated: “We are excited to showcase how Western Canadian expertise in both the agriculture and energy sectors can help reduce carbon emissions at scale for both Alberta and North America. We will use our local expertise to produce green energy products that are seeing increasing demand from around the world, while at the same time, reducing waste and carbon emissions.”
“These transactions represent the first step in creating a platform with which we plan to grow our biodiesel production capabilities, and we are pleased to have established partnerships with CWB, key institutional investors and key strategic investors, which will help ensure we are well financed, and well supplied, to build a successful business,” Mr. Wadsworth continued.
Eight Capital acted as exclusive financial advisor in respect of the Financing, Acquisition and Credit Facility.
Stikeman Elliott LLP acted as counsel to Canary in respect of the Financing, Acquisition and Credit Facility.
Canary is a private corporation that has recently been formed, planning to reduce carbon emissions at scale through sustainable production of biofuels. More information will be available about Canary, and its plans, in the coming weeks including through our website www.canarybiofuels.com.
Forward-Looking and Cautionary Statements
Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “will” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, statements concerning: the use of proceeds from the Financing; production of 75 million litres of biodiesel using waste products; reducing emissions at scale; timing for full biodiesel production and the business plan of the Company, generally. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Canary. Although Canary believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Canary can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the biodiesel industry in general, operational risks in relation to the Conversion, the uncertainty of estimates and projections relating to production, health, safety and environmental risks, constraint in the availability of services, commodity price and exchange rate fluctuations, the current COVID-19 pandemic, changes in legislation impacting the biodiesel industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
The forward-looking information contained in this press release is made as of the date hereof and Canary undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.
All dollar figures included herein are presented in Canadian dollars.
SOURCE Canary Biofuels Inc.
For further information: George Wadsworth, Chief Executive Officer; Robert Skilnick, Chief Financial Officer