Vega Biofuels Completes Interim Funding Package
News Mar 26, 2012
The Company recently announced plans to build a green-energy manufacturing plant in Cordele, Georgia that when completed, will manufacture bio-coal from timber waste. The bio-coal will be made using special technology called "torrefaction."
"We've been working with a small group of existing shareholders the past few months to put together a funding package that will help us with expenses associated with the construction of the plant," stated Michael K. Molen, Chairman/CEO of Vega Biofuels. "This helps tremendously. Things are moving at a very fast pace now and these funds will help us move to the next level much more quickly. The package is designed as a Line of Credit and we are set to receive the first draw in April. The LOC is secured by Promissory Notes and does not dilute the Company's securities. I'm very proud that our shareholders have been so supportive of our efforts. We will have more news about the plant in the next few days."
Torrefaction is a partial carbonization process that takes place at temperatures between 475 - 575o in a low temperature environment which makes the physical and energetic properties of the biomass much more comparable to traditional coal. The biomass is then compressed into briquettes to be sold to the end user. Torrefaction has the added benefit of reducing or eliminating undesirable volatiles, such as nitrous oxides and sulfur dioxides and is considered carbon neutral to the environment.