SOURCE: BioNitrogen Corporation

BioNitrogen Corporation

May 22, 2013 15:20 ET

BioNitrogen Corporation Announces a $10 Million Allocation From the Florida New Markets Capital Investment Program

DORAL, FL--(Marketwired - May 22, 2013) - BioNitrogen Corporation (PINKSHEETS: BION), a clean energy company that builds non-hydrocarbon, environmentally-friendly plants to convert residual agricultural and forestry biomass into urea fertilizer, announced today that it signed a term sheet for a $10 million investment supported by the Florida New Markets Capital Investment Program ("NMTC").

The $10 million NMTC allocation is being provided through a subsidiary of Stonehenge Community Development, LLC. The investment will be in NMTC equity capital into a newly-formed subsidiary of BioNitrogen. The $10 million NMTC allocation will translate into a new cash investment of approximately $1.95 million for BioNitrogen. The cash proceeds will be used to finance equipment and land improvements for the plant in Hardee County, Florida. Under the conditions set forth in the term sheet, BioNitrogen is obligated to pay 3% of the allocation amount at closing plus 0.5% per annum to be paid over the seven-year term of the investment. The investment is expected to close prior to July 26, 2013.

"We are pleased about yet another important step in BioNitrogen's progress," said Bryan Kornegay, Jr., President and CFO of BioNitrogen. "The capital investment will allow us to advance the Hardee County project while we work in parallel on the EPC contract for the plant."

About BioNitrogen Corporation
Bio Nitrogen Corporation (PINKSHEETS: BION) is a clean energy company that builds non-hydrocarbon, environmentally-friendly plants that convert residual agricultural and forestry biomass into urea fertilizer. Our mission is to provide safe, cost effective, green solutions that are economically beneficial in locations where biomass is produced and urea is consumed. Additional information can be found at www.BioNitrogen.com.

About The New Markets Tax Credit Program ("NMTC")
NMTC is a federal community development program designed to stimulate the flow of investment capital in underserved communities. Tax payers that make qualified equity investments in designated Community Development Entities (CDEs) receive a 39 percent NMTC tax credit that is claimed over a seven-year credit allowance period. Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities.

About Stonehenge Community Development, LLC ("SCD")
SCD is a CDE with a National service area and the recipient of four NMTC allocations totaling $367.5 million. SCD invests its NMTC allocations predominately in businesses and community service non-profits throughout the United States that are located in highly distressed census tracts and have significant minority impact. To execute its strategy, SCD works closely with community leaders and organizations to deploy capital in projects that maximize community revitalization and economic impact. SCD has a key strategic community partnership with the National Urban League which has over 100 affiliates nationwide.

Safe Harbor Statement
The forward-looking statements contained in this document involve risks and uncertainties that may affect the Company's operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the Company's expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

Contact Information

  • CONTACT:
    Adam Friedman
    Principal
    Adam Friedman Associates
    Email Contact
    917-675-6250