Attached files
| file | filename |
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| 8-K - New Generation Biofuels Holdings, Inc | v187641_8k.htm |
| EX-99.1 - New Generation Biofuels Holdings, Inc | v187641_ex99-1.htm |
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Media
Contact: Bryan McPhee ph: (410) 652-1159
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IR
Contact: Rob Schatz ph: (212) 370-4500
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Or bkmcphee@newgenerationbiofuels.com
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Rob@wolfeaxelrod.com
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NEW GENERATION BIOFUELS PROVIDES UPDATE
ON POTENTIAL DEAL
WITH MILESTONE
BIOFUELS
Columbia, Maryland – June 3, 2010 –
Renewable fuels provider New Generation Biofuels Holdings, Inc. (NasdaqCM: NGBF)
(“NGBF” or the “Company”) and Regent Trend Investment Ltd. (soon to be
Milestone Biofuels Limited (“Milestone”) announced an amendment to their
non-binding Memorandum of Understanding (MOU) dated March 12, 2010 that extends
the due diligence period an additional 90 days to more fully explore the
opportunities available for both parties. The MOU contemplates a strategic
relationship between Milestone and NGBF, including a $20 million direct equity
investment in the Company and collaboration with Milestone to fund a joint
venture to develop and operate biofuel production plants in the continental
United States with a production capacity of 250 million gallons per year. Upon
satisfactory completion of due diligence, any transaction also
remains subject to negotiation and execution of definitive agreements, board
approval by both parties and likely will need shareholder approval under Nasdaq
listing rules, which the Company presently intends to seek at its annual
shareholders’ meeting.
“Our due
diligence process is allowing us to successfully validate the NGBF technology
and identify additional opportunities for our potential partnership that
necessitates more time to explore further,” stated Mr. Henry Ho, Chairman of
Milestone. “We believe that the overall opportunities for all of us are bigger
than just the United States and our original plans. In our review process, we
have identified multiple opportunities in China, Central and South America, the
Caribbean as well as the US such as vertical integration, productive use of
marginal lands for feedstocks, job creation, and other value added activities
that are of great interest to us and other parties in the markets we plan to
serve. Evaluating these several opportunities requires more time due to
the complex nature of these many options.” Mr. Ho added, “Cary and his
team have been very helpful in supporting our due diligence process and
identifying the opportunities we have together. NGBF has brought many
feedstock and cultivation opportunities to the process, including their new
glycerin-based biofuel formulation that are of great interest to Milestone and
positively differentiates their technology from others.”
“We have
been impressed by Henry’s approach to evaluating our business and are pleased
that together we have identified some significant additional opportunities,”
commented Cary J. Claiborne, CEO and President of NGBF. “Cultivation and
feedstocks has the potential to be a real area of competitive strength for our
potential partnership. Although these advancements add more time for
evaluation, the breadth and number of additional identified opportunities makes
it necessary to extend the due diligence period. We believe it is well worth the
time investment to evaluate our potential opportunities together. We
greatly appreciate Henry’s commitment to the process and the additional time he
and his team will be investing.”
Added Mr.
Claiborne, “There are a multitude of commercial applications we have discussed
with Henry and the Milestone team. We are continuing to focus our
development efforts on opportunities that differentiate us as a biofuel
technology company through initiatives such as our recently announced patent
application for a glycerin-based biofuel which we have added to our intellectual
property portfolio. This is another example of the continued technology
advancements NGBF creates to increase the potential value and opportunities for
the markets we
serve.”
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About
New Generation Biofuels Holdings, Inc.
New
Generation Biofuels develops renewable fuels technology and is a renewable fuels
provider. New Generation Biofuels also holds an exclusive license for North
America, Central America and the Caribbean to commercialize proprietary
technology to manufacture alternative biofuels from plant oils and animal fats
that it markets as a new class of biofuel for power generation, commercial and
industrial heating and marine use. The Company believes that its proprietary
biofuel can provide a lower cost, renewable alternative energy source with
significantly lower emissions than traditional fuels. New Generation Biofuels’
business model calls for establishing direct sales from manufacturing plants
that it may purchase or build and sublicensing its technology to qualified
licensees.
Forward
Looking Statements
This
news release contains forward-looking statements. These forward-looking
statements concern our operations, prospects, plans, economic performance and
financial condition and are based largely on our current beliefs and
expectations. These statements involve known and unknown risks, uncertainties
and other factors that may cause actual results to be materially different from
any future results expressed or implied by such forward-looking statements The
risks and uncertainties related to our business include all the risks attendant
an emerging business in the volatile energy industry, including, without
limitation, the risks set forth under the caption “Risk Factors” in the
Company’s Annual Report on Form 10-K for the fiscal year ended December 31,
2009, and in subsequent filings with the Securities and Exchange
Commission.
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