Dallas, United States [RenewableEnergyWorld.com] Southridge Enterprises Inc. announced that its wholly owned subsidiary Southridge Ethanol Inc. has signed a letter of intent to acquire an ethanol plant from Bronsiacco Industrial Ltd.
“The opportunity to acquire this plant has given Southridge a tremendous advantage to be a large producer of ethanol in Brazil. By purchasing an existing plant, we will be able to produce 50 million gallons per year (MMGY) by May 10, 2009. With this asset on our balance sheet, we have once again shown our ability to build shareholder value,” said Ken Milken, president of Southridge Ethanol.
To close this acquisition, Southridge will use the proceeds of an equity financing from an Asian-based investment transaction nearing completion. The purchase is expected to close in 30 days, subject to certain conditions, including completion of satisfactory due diligence by the company and approval of the company’s and Bronsiacco Industrial’s boards of directors and other customary conditions.