Solarvest BioEnergy Inc.
TSX VENTURE : SVS

Solarvest BioEnergy Inc.

July 10, 2009 16:33 ET

Solarvest BioEnergy Inc. Announces Corporate Reorganization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2009) - SOLARVEST BIOENERGY INC. (TSX VENTURE:SVS) ("Solarvest" or the "Company") wishes to announce its corporate restructuring and agreement terms with former senior management. In response to the current economic environment, the Company entered into discussions with senior management to reduce expenses. Specifically, the Company has reduced expenses associated with the operation of its US subsidiary Phyco Hydrogen Inc. ("PHI"). This includes changes in senior management, redirection of corporate resources, and undertaking the relocation of PHI's research operations from Indiana to Canada.

The Company has negotiated to mutually terminate the employment arrangements with Mr. Richard Wagner and Mr. Philip Ranck, President & CEO and COO of PHI, respectively. Both Mr. Wagner and Mr. Ranck had executive employment agreements with PHI, which entitled them to severance payments upon termination. Pursuant to the Separation Agreements with both Mr. Wagner and Mr. Ranck, only salary and expenses currently owing under their respective employment agreements will be paid.

As a part of the agreement with Mr. Wagner, the Company will repurchase all Mr. Wagner's shares in the Company, his shares of PHI, and compensate Mr. Wagner for shares in PHI which he would have been entitled to upon reaching certain research milestones pursuant to the terms and conditions of the Company's Qualifying Transaction, for a one time payment of US$150,000. Mr. Wagner owns 50,000 common shares in the Company and 1,000 non-voting common shares in the Company's US subsidiary, Phyco Hydrogen Inc. ("PHI"). Under a Share Exchange Option Agreement, Mr. Wagner had the right to exchange the 1,000 non-voting common shares in PHI for 1,000,000 common shares in the Company. He also had the right to obtain an additional 500 PHI Shares upon the achievement of certain milestones, which in turn are exchangeable for 500,000 common shares in the Company. Under the terms of the Separation Agreement, the Company will repurchase the 50,000 common shares in Solarvest at US$0.40 per share and the 1,000 non-voting common shares in PHI at US$130.00 per share. Mr. Wagner also relinquishes his right to exchange any shares in PHI for common shares in the Company and also his right to any additional non-voting common shares in PHI. Upon completion of this transaction, Mr. Wagner will not hold any shares in the Company or in any of its affiliates.

The Separation Agreements with both Mr. Wagner and Mr. Ranck include mutual releases for all claims.

Upon completion of this reorganization, Mr. Wagner will resign as director and officer of PHI, and the Company's wholly-owned subsidiary Phycobiologics (Europe) Limited and Mr. Ranck will resign as director of PHI.

The research facility operated by PHI will relocate to Prince Edward Island.

About Solarvest

Solarvest is a research and development company in the biotechnology sector. The Company is committed to the development of sustainable and renewable energy sources to meet growing energy demands and environmental challenges. Solarvest has acquired the rights to a biologically-based hydrogen producing technology, which provides a controlled method for turning on and off genes in algae resulting in the continuous production of hydrogen gas.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange has neither approved nor disapproved the contents of this Press Release.

Contact Information

  • Solarvest BioEnergy Inc.
    Kenneth A. Cawkell
    Chairman
    (604) 684-3323 ext 227
    (604) 684-3350 (FAX)
    kcawkell@cawkell.com