SOURCE: BioNitrogen Holdings Corp.
WEST PALM BEACH, FL--(Marketwired - Mar 27, 2014) - BioNitrogen Holdings Corp. (PINKSHEETS: BION), a cleantech company that utilizes patented technology to build environmentally-friendly plants that convert biomass into urea fertilizer, announced today that it has signed a term sheet for a $9 million investment supported by the Florida New Markets Capital Investment Program ("NMTC").
The NMTC investment will be to Hendry BN Construction & Fertilizer Services, LLC, a newly-formed subsidiary of BioNitrogen Holdings Corp. The $9 million NMTC allocation will translate into a new cash investment of approximately $1.5 million for BioNitrogen. The cash proceeds will be used for capital equipment, engineering, closing costs and improvements to the Hendry County site, including feedstock and fertilizer services and related equipment.
Hendry BN will operate on approximately 15 acres at the Weekley Industrial Park and provide mulch, feedstock, construction and fertilizer services to the site, Hendry County and surrounding areas. The business is expected to provide five (5) full time jobs over the next year. The investment is expected to close in April.
"Hendry BN provides us with a dedicated team focused on providing biomass processing and fertilizer services to the local market." said Bryan Kornegay, Jr., President and CFO of BioNitrogen. "This capital investment facilitates the acquisition of equipment and infrastructure to begin operations, create jobs and generate revenue for our business and Hendry County, Florida."
"We are excited about this investment and the job creation for Hendry County," said Gregg Gillman, President of the Hendry County Economic Development Council. "We see this as a great initial building block with bigger things to come from BioNitrogen in Hendry County. We look forward to finalizing state grants to further induce BioNitrogen to build a plant here in our County."
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. Taxpayers that make qualified equity investments in designated Community Development Entities (CDEs) receive a tax credit that is claimed over a multi-year credit allowance period. Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments and job creation in low-income communities.
About BioNitrogen Holdings Corp
BioNitrogen Holdings Corp. (PINKSHEETS: BION) is a cleantech company that utilizes patented technology to build environmentally-friendly plants that convert 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
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.