Dallas Texas (PRWEB) March 05, 2013
Algae International Group, Inc. (“AIGI” http://www.algaeplanet.com) completed the merger with Savanna East Africa Inc. (OTC: NVAE) represented by Regus Advisors Inc. (http://www.regusadvisors.com) as part of a strategy targeting the nascent BioFuel market anticipated to reach $60 billion within the next ten years according to the Advanced Biofuel Market Report of 2012 (http://tinyurl.com/biofuel-research).
Merger terms facilitated a management transition with outgoing management responsible for bringing NVAE into compliance with the OTC Markets Standard For ‘Current Information’ Filers. The OTC Markets elevated NVAE to ‘Current Information’ on February 28, 2013.
In conjunction with reaching the ‘Current Information’ standard, the Company is releasing the following statement from John Potter, President AIGI:
Our story began in 2011 while working with Pacific Oil Products Inc., the University of San Diego (http://algae.ucsd.edu) and the Scripps Institute. (http://www.scripps.edu). In September of that year the combined efforts resulted in a successful extraction of oil from a specialized strain of algae. Algae grown in a pond, six feet in diameter and two feet deep, produced five gallons of oil and thirty-five pounds of non-oil, protein rich biomass within a two-week period of time.
With the research behind us to demonstrate a production capacity of 125,000 gallons of oil per acre per year (not to mention 875,000 pounds of non-oil, protein rich biomass), we forged an agreement with the Tulare Water Treatment Plant (http://tinyurl.com/EPA-Tulare) in central California. As part of a long-standing commitment to continuously increase on-site green power generation, Tulare currently generates on-site electric power with biogas fuel cells. AIGI has an agreement to capture the carbon dioxide waste from the biogas fuel cell generators and pipe it to an adjacent eight acres where we will install a greenhouse, ponds, centrifuge, oil press and storage containers.
Using scenedesmus dimorphus algae, 1000 pounds per hour of fuel cell carbon dioxide exhaust, free sunlight, free dairy processing waste water, acres of land and relatively simple tools, AIGI has the potential to produce up to 500,000 gallons of oil and 3.5 million pounds of protein rich biomass in its first year of live operations – and this is just the beginning.
AIGI has identified another fifty fuel cell power generation plants in California alone that are similar to the Tulare installation. We have narrowed our initial list to 12 specific targets which we believe lend themselves to replication of the Tulare project. Moderate success in expanding beyond our first year of live operations production capacity could give AIGI the ability to produce 3 million gallons of oil and 14 million pounds of protein rich biomass.
The current market for feedstock biodiesel is approximately $12 per gallon. The U.S. Military has paid up to $26 per gallon. That translates into potential revenue from first year operations of $6 million before taking the possibility of military contracts into consideration, and $36 million in annual revenue from moderate expansion plan success (not including the possibility of military contracts). We are using a lower per gallon estimate in our forecasting to be more conservative.
You may ask, who’s paying $12 to $26 a gallon for feedstock biodiesel when regular old petroleum based fuel is available for less than $4 per gallon at the gas station? Well, President Obama made it loud and clear in his recent State of the Union Address that Global Climate Change (http://tinyurl.com/WP-SOU) is a national priority. This priority is not new, though it is now gaining more momentum. ‘Demand’ is growing for technologies that reduce energy consumption and reduce carbon emission in the production and consumption of energy products. ‘Supply’ of technologies that mitigate Global Climate Change are relatively low. High demand and low supply results in a high price.
AIGI expects to market to the State and National mandated programs driving real demand for feedstock biodiesel. Our research indicates that current demand exceeds existing market capacity. We expect demand to grow at a pace that exceeds the expansion of market wide production capacity for the next ten years keeping prices for feedstock biodiesel high. We will strive to develop opportunities to own and operate production capacity generating revenue from the sale of feedstock biodiesel as well as contracting to build feedstock biodiesel production capacity for other owner operators.
AIGI, through Pacific Oil Products, Inc., has received favorable feedback from the U.S. Military in response to samples of our feedstock biodiesel product. We intend to pursue U.S. Military demand mandated by Government regulation (http://tinyurl.com/Military-Biofuel) to stockpile alternative fuel supplies.
Our algae biodiesel production process captures carbon dioxide that would otherwise be emitted into the atmosphere and utilizes it to produce fuel that emits less carbon dioxide in the combustion process. Our production process also produces a protein rich biomass that can be monetized into livestock and/or aquaculture feed. Combined with the typical production capacity of our average installation, we expect that the AIGI solution will be attractive to a large percentage of rural municipalities.
As anticipated State and National mandates increase, we expect demand for the AIGI solution to increase not just with rural municipalities but also with self contained corporate campuses.
AIGI has developed a flexible strategy to enhance the opportunity for success in the face of the spectrum of unknown future conditions and circumstances facing any early stage business and particularly one in a new industry.
We will continue to produce sample capacities at minimal expense to be used in the development of future sales. We will not increase operational expenses until financing is secured to build necessary production infrastructure.
Given our expertise in the cultivation of algae and the subsequent production of biodiesel, we expect to provide agricultural, and chemical engineering consulting services to plan and develop production facilities for municipalities and business campuses.
AIGI’s agricultural expertise and chemical engineering expertise overlaps beyond algae biodiesel production into the development of other crops and fuels. We are currently exploring alternative fuel projects other than algae biodiesel. Similarly, we are exploring alternative crop projects not only for the purpose of possibly producing biodiesel feedstock other than algae, but to potentially leverage our specific brand of agricultural expertise into other rapidly expanding agricultural industries.
While we are eager to rapidly advance our business plan, we are balancing our forward advance with the current uncertainty of the investment market. Our primary investment requirements at this time are necessary to expand our current operations into full production capacity and to build out a second facility. We require up to $5 million toward this end, the majority of which will go to purchase equipment. We will require similar funds to build out each of our twelve targeted expansion facilities.
The merger with NVAE was intended to improve our options to engage financing. We are pursuing debt financing that would be secured by purchased equipment as well as exploring equity financing. We would prefer debt financing leaving equity unencumbered. We anticipate the ultimate engagement of the necessary investment will likely entail some combination of debt and equity. We are not rushing into a recapitalization that would result in an immediate stock split. At this time we deem it prudent to continue courting potential investors and to involve prospective investors in the recapitalization considerations.
I look forward to sharing our progress as AIGI continues to develop. All of us here at AIGI are enthusiastic about our potential to be a leader in the green energy market.
-End of Statement-
The transaction is represented by Regus Advisors Inc., a private global merchant banking firm that provides strategic and financial advisory services to private and public companies to include; structure, documentation, financing and exit strategies as well as listing on domestic or foreign exchanges
About Algae International Group Inc.
Algae International Group Inc. (AIGI) is a development stage renewable energy company that is seeking to develop Biofuel from Algae utilizing a Trademark process of “InSym” that combines; methane, CO2, fuel cells, nitrates, phosphates, sunlight and a specialized press to remove biomass and create HRD and HRJ fuel. For more info visit http://www.algaeplanet.com
About Regus Advisors Inc:
Regus Advisors is a private global merchant banking firm that provides strategic and financial advisory services to private and public companies to include; structure, documentation, financing and exit strategies as well as listing on domestic or foreign exchanges. Regus Advisors is not a FINRA/FSA licensed broker/dealer and does not buy/sell securities. For more info: http://www.regusadvisors.com
Safe Harbor Statement - This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward- looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual or future results may differ materially from those anticipated depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. NVAE does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.
For more information please contact:
Regus Advisors Inc.
Algae International Group Inc.