WIT Finalizing NorAmera BioEnergy Purchase
Monday, 16 June 2008 18:00
Claude Carles, President of ‘Weyburn Inland Terminal, announced today that the Company has completed the due diligence process announced in a letter of intent earlier this year with NorAmera BioEnergy Corporation. Finalization of the transaction is now subject to negotiation and completion of the required legal documentation, and satisfaction of various closing conditions and will, on closing result in WIT acquiring a majority ownership position in NorAmera. The target closing date is July 1, 2008. “Sound investments made over the past number of years by this profitable, farmer owned and directed Company have allowed WIT to evaluate a number of opportunities for continued investment in value-added opportunities” said Carles. “NorAmera can provide another solid diversification opportunity for WIT, and the two companies have a good strategic fit.”
“The ethanol business is here to stay” noted CEO Rob Davies. “Minimum renewable fuel standards established provincially, and at the federal level both in Canada and the United States will provide an ethanol marketplace for years to come.” Skyrocketing oil prices have driven the transportation component of many goods higher, and participating in the ethanol business will allow the Terminal to participate in that growth. “We believe there is a viable business model that provides another end-use market for grain produced in our area” said Davies. “Over the course of our due diligence investigation, we have identified some exciting opportunities for other businesses associated with NorAmera.”
Terms of the proposed acquisition of a majority interest in NorAmera are to remain confidential until the transaction is complete. Although WIT is expected to acquire a majority interest in NorAmera BioEnergy, NorAmera will continue to operate as an independent company.
NorAmera BioEnergy Corp. (NABEC) is a privately held Saskatchewan based company founded to produce renewable energy under the Province of Saskatchewan’s Small Producer Mandate. The Weyburn based company is designed to produce 25 million litres of fuel ethanol and 23,000 tonnes of distiller's grain annually.
WIT is a shareholder-owned, farmer-directed grain company located on CP Rail’s Soo Line near Weyburn, Saskatchewan. Since its start in 1976, ‘The Terminal’ has been at the forefront of change in the industry, leading the way to help improve the overall efficiency of Canada’s grain-handling system. The philosophy and goals of the company are summed up in its mission statement: Profitability Through Service, Innovation and Integrity.
-David Knibbs, Stoughton