VANCOUVER, BC / ACCESSWIRE / March 12, 2015 / Viridis Energy Inc. ("Viridis" or the "Company") (TSXV: VRD) today announced that its wholly owned subsidiary, Scotia Atlantic Biomass Company Limited ("Scotia Atlantic"), has received a working capital loan of $2.0 million from Cornwall Investments, LLC ("Cornwall"), which will be used to procure Nova Scotia wood fiber for the production of its industrial pellets ("Fiber Inventory Loan"). The loan is secured by inventory in the form of a demand note with interest calculated daily and compounded monthly at the rate of 10%.
"Cornwall recognizes the importance of building a strong raw material inventory at Scotia Atlantic, particularly after spring break up when fiber is plentiful and cost efficient," said Christopher Robertson CEO, Viridis Energy. "Scotia Atlantic has been purchasing fiber as needed from cash flow, which limited its ability to inventory lower priced material as seasonal supply and demand influences impacted prices. This funding will allow us to accumulate up to a 90-day supply of low cost fiber inventory when it becomes available, which should decrease Scotia Atlantic's average cost of goods sold and improve its gross margin."
In addition to the Fiber Inventory Loan, Cornwall also holds a $3.1 million mortgage (including accrued interest) at 9% with Scotia Atlantic and a general security agreement and first charge on all property, plant and equipment. In the fourth quarter of 2014, Cornwall also provided the Company a $2.5 million line of credit for working capital purposes.
Neither 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.
Viridis Investor Contact:
Michele Rebiere
Chief Financial Officer
Viridis Energy Inc. 905-847-5226
About Viridis Energy
Viridis Energy (VRD.V) (VRDSF) is a publicly traded, "Cleantech" manufacturer and distributor of renewable energy providing wood pellet biomass to global residential and industrial markets. Located in Vancouver, Viridis Energy Inc. operates Okanagan Pellet Company Ltd. (BC), Scotia Atlantic Biomass Company Limited (Nova Scotia) and Viridis Merchants Inc. (New Jersey), with over 300,000 tonnes of trading and manufactured capacity on both coasts of North America. For further information about Viridis Energy Inc., visit the company website at www.viridisenergy.ca.
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SOURCE: Viridis Energy Inc.
