Attached files
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| 8-K - New Generation Biofuels Holdings, Inc | v195833_8k.htm |
| EX-10.1 - New Generation Biofuels Holdings, Inc | v195833_ex10-1.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 Holdings Announces Lease Restructuring
and
Other Cost Cutting Actions
Columbia,
Maryland – August 27, 2010 – Renewable fuels provider New Generation Biofuels
Holdings, Inc. (NasdaqCM: NGBF) (“NGBF” or the “Company”) announced today that
it has entered into an agreement to amend the lease on its Baltimore production
facility. Pursuant to the agreement the Company made a cash payment
of $290,000 and also issued 300,000 shares of restricted common stock, to the
landlord. In consideration of the payment, the landlord agreed to forfeit past
due amounts under the lease agreement, terminate and forfeit minimum payments
due for terminaling services under a separate agreement, and reduce the monthly
lease rate to $25,000 for the remaining lease term of three
years. Included in the $290,000 payment is $100,000 representing the
August reduced lease payment and prepayment of the monthly $25,000 rent for the
months of September – through November 2010.
As a
result of the lease amendment the Company recorded a gain of approximately
$800,000 and reduced our future obligations by approximately $2.9
million. The Company has also taken additional steps to reduce its
costs and therefore reduce its quarterly cash burn.
Additional
key cash conservation points:
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Quarterly
Cash burn reduced to less than $700,000 excluding cost of
sales
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We
expect our G&A costs to increase as we expand our customer base and we
reach full production levels at our Baltimore facility and
approach positive cash flow
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·
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Greater
than 50% reductions in professional fees through renegotiation of rates
and provider changes
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Organizational
and employee status changes aimed at conserving
cash
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“We are
very happy to reach an agreement to settle our outstanding liability and reduce
the monthly cost of our manufacturing facility. We appreciate the
willingness and flexibility shown by Pennington Partners in reaching this
agreement. This is a meaningful step in meeting our objective of
reducing our cash burn. The amendment coupled with other efforts
should yield a substantial decrease in our monthly and quarterly cash use.” said
Cary J. Claiborne, President and Chief Executive Officer of New Generation
Biofuels Holdings, Inc. “In addition to cost reductions moving
forward, we have settled some of our accrued liabilities and continue to
negotiate with our business partners to settle additional obligations to
strengthen our balance sheet.”
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About
New Generation Biofuels, Holdings, Inc.
New
Generation Biofuels is a developer and provider of renewable fuels. New
Generation Biofuels 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 the
Company's operations, prospects, plans, economic performance and financial
condition and are based largely on the Company's 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, which include all the risks attendant an
emerging growth company in the volatile energy industry, including those set
forth in the Company’s Annual Report on Form 10-K for the year ended December
31, 2009, and in subsequent filings with the Securities and Exchange Commission.
These forward-looking statements are made as of the date of this news release,
and the Company assumes no obligation to update the forward-looking statements
or to update the reasons why the actual results could differ from those
projected in the forward-looking statements.
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