Algae.Tec Says Deal with Reliance Industrial Investments and Holdings Limited (RIIHL) to Launch Global Biofuels Division
Algae.Tec Limited recently said the signing of agreements with Reliance Industrial Investments and Holdings (RIIHL) was the backing the Company needed to fund and launch its Global Biofuels Division. RIIHL is part of the Reliance Group, India’s largest private sector enterprise.
The agreements encompass a subscription agreement, and technical and equipment supply agreements. These agreements also discuss conditions for future commercial algae plants, following the successful completion of the pilot plant.
The subscription agreement details the issue of $1.5m worth of shares and $5m of options to RIIHL with both the shares and option exercise price being set at the 90 day volume weighted average share price, which equates to 16.3 cents per share. The shares will be issued immediately and RIIHL will make additional investments by exercise of $1.2m of options over the next two years.