Vancouver, BC - January 21, 2013 - Viridis Energy Inc. ("Viridis" or the "Company") (TSXV: VRD) today announced that its wholly owned subsidiary, Okanagan Pellet Company Inc., has received a working capital loan of approximately $800,000 from Cornwall Investments, LLC ("Cornwall"). The loan is a demand note with interest calculated and payable monthly at the Royal Bank of Canada's prime rate of interest for commercial loans plus 5%. Viridis has guaranteed the repayment of the principal amount of the loan and all interest that accrues after a demand for repayment is made.
As previously announced, Cornwall recently purchased the loan from HSBC Bank Canada ("HSBC") made by HSBC to Viridis' wholly owned subsidiary, Cypress Pacific Marketing Inc. of approximately $2.8 million. Cornwall also holds a $2.6 loan and related security interest on the Company's newest facility, Scotia Atlantic Biomass Company Ltd. The Company is currently in negotiations with Cornwall on a term loan to address the combined indebtedness.
In addition, approximately $200,000 in cash collateral was acquired when Cornwall purchased the HSBC note. These funds were returned to Viridis by Cornwall and will be added to the term loan once the terms have been settled.
|Company Contact: Michele | | |
|Rebiere Chief Financial | | |
|Officer Viridis Energy Inc | | |
|905-847-5226 | | |
About Viridis Energy Inc.
Viridis Energy Inc. (TSXV: VRD) is a publicly traded, "Cleantech" alternative energy company specializing in the agricultural and wood waste biomass. Located in Vancouver, B.C., Viridis Energy operates Cypress Pacific Marketing, Okanagan Pellet Company and Scotia Atlantic Biomass, thus providing the company with vertical integration for distribution and manufacturing as well as coast to coast national presence. For more information on Viridis Energy Inc. please refer to the company website at www.viridisenergy.ca.
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