On December 10, 2013 Vancouver-based biofuels and renewable chemicals company Lignol Energy Corporation (LEC) announced its unaudited consolidated financial results for the three months and six months ended October 31, 2013.
During the quarter, LEC secured an increase in its credit facility to $12.5 million and made further steps to consolidate its shareholding in Territory Biofuels Limited. LEC also completed further due diligence in respect of an investment in Neutral Fuels Parent Company and its subsidiary Neutral Fuels (Melbourne) Pty Ltd., and completed the first phase of its investment on November 12, 2013. Neutral Fuels intends to roll-out a biodiesel program for the APMEA region in conjunction with McDonald's restaurants.
LEC replaced its $6.25 million credit facility with Difference Capital Financial Inc. with a secured revolving credit facility of up to $12.5 million in August 2013
Agreed to provide TBF with further funding of up to an additional A$1 million which could have the potential to increase LEC's investment to up to approximately 87% non-diluted and 86% on a fully diluted basis
Reported a loss of $3.9 million for the current quarter compared to a loss of $2.6 million for the comparable quarter last year
Reported a comprehensive loss for the quarter of $7.3 million as a result of an unrealized loss of $3.4 million arising from a decrease in the market value of LEC's investment in Australian Renewable Fuels
Subsequent Event Highlights
- Completed funding of A$2.0 million to acquire a 20% equity stake in Neutral Fuels and a 51% interest in Neutral Fuels Melbourne
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