Peterborough company plans green fuels plant in Malaysia
Peterborough based renewable energy investment boutique, Biofutures International is up and running following its May float.
The company has entered into a conditional agreement to acquire Malaysian company, Zurex. Zurex was formed in November 2005 to establish a 200,000 metric tonnes per year biodiesel refinery and has been working on establishing the feasibility of the project and gaining a manufacturing licence from the Malaysian authorities.
Biofutures has conditionally agreed to acquire all of the share capital of Zurex in consideration for 66,670,000 shares in Biofutures, representing 64 per cent of the enlarged issued share capital. The deal is dependent on approval from Biofutures' shareholders and also on it securing the necessary finance for the project.
It must be confident, as it has also unconditionally agreed to make an unsecured, interest free loan to Zurex of £382,100 as a deposit to acquire the land on which the plant is expected to be built. Biofutures has also undertaken to loan Zurex further amounts to progress the project prior to completion of the acquisition.
The Peterborough company said Zurex's balance sheet at 30 June 2006 showed negligible net assets. Biofutures said it is currently reviewing all aspects of the project and potential financing arrangements.
The company floated on Aim in May, raising £2.9m.