Viridis Energy to acquire Colorado pellet plant

March 16, 2011
Mar. 16, 2011, Vancouver – Viridis Energy has entered into a letter of intent to acquire 100% of the outstanding shares of Confluence Energy, a large wood pellet plant in western United States. This transaction, subject to the applicable policies of the TSX Venture Exchange, will be structured as an earn-out and be accomplished through a share exchange of Viridis Energy common stock and the assumption of debt. The transaction is expected to close during the first half of 2011.

Confluence Energy is a Colorado-based wood pellet manufacturer and distributor with a capacity of 80,000 tons/year (expandable to 125,000 tons/year) of packaged wood pellets. Consistent with Viridis’ vision, Confluence manufactures wood pellets using mountain pine beetle-killed wood, a biomass feedstock that is plentiful in the Rocky Mountain region. The company is a supplier to several large retail customers, including big-box home improvement stores.

In Colorado and Wyoming alone, mountain pine beetle is responsible for the destruction of an estimated 2,000,000 acres of pine trees.

“With the Confluence acquisition, Viridis more than doubles its production capacity and expands its distribution reach to both the east and west coasts of the United States, providing more efficient access to ports that serve international markets,” says Chris Robertson, CEO of Viridis Energy. “Our mission is to aggressively expand our operations and achieve scale. We are in the midst of growing our business geographically as well as entering into new markets. The demand for clean, inexpensive alternative fuel is growing rapidly. ”

Mark Mathis, Confluence’s founder and CEO, will continue to manage the Colorado operation and assume a senior management role within Viridis upon the completion of the transaction.

For additional information, read: Canadian energy company in negotiations with Kremmling pellet plant, by Reid Armstrong | Sky-Hi Daily News.

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