Canary Biofuels inc. establishes platform as a leading Alberta based second-generation biodiesel production company. 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.
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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 Biofuels Inc. Establishes Platform as a Leading Alberta Based Second-Generation Biodiesel Production Company, Calgary, ABM, March 3, 2021
