Lignol Energy (LEC), a Canadian advanced biofuel technology firm, has increased its stake in Territory Biofuels (TBF) acquiring additional 2.67 million shares for A$1m ($963,620) through a TBF private placement offering.
Following the completion of this transaction, LEC will become the majority stakeholder in TBF with about 56% of the issued shares of TBF and 60% on a fully diluted basis.
Commenting on the developments, LEC CEO and chairman Ross MacLachlan stated that the company through this acquisition will lend support to restart the Darwin refinery.
"Our goal is to have the refinery come back on line in Q4 2013, and incorporate upgrades to process lower cost feedstocks that will enhance profitability in 2014," added MacLachlan.
The Darwin refinery is expected to produce up to 150 million liters of biodiesel per year at full capacity.
LEC, meanwhile, having gained majority ownership in TBF is eligible for Difference Capital Funding’s increase in the existing credit line to $6m from previous $1m.