Viridis Energy to acquire Colorado pellet plant
Mar. 16, 2011, Vancouver – Viridis Energy has entered into a letter of intent to acquire 100% of the outstanding shares of Confluence Energy, one of the largest wood pellet plants in the western United States.
March 16, 2011 By Viridis Energy
Mar. 16, 2011, Vancouver – Viridis Energy
has entered into a letter of intent to acquire 100% of the outstanding shares
of Confluence Energy, one of the largest wood pellet plants in the 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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