SOURCE: BioNitrogen

BioNitrogen

April 24, 2014 09:00 ET

BioNitrogen Corporation Closes on $9.6 Million Allocation From the Florida New Markets Capital Investment Program

WEST PALM BEACH, FL--(Marketwired - Apr 24, 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 closed on a transaction using $9.6 million of allocation under the Florida New Markets Capital Investment Program ("NMTC").

One-half of the NMTC allocation has been provided by Enhanced Community Development, a national community development entity specializing in investments in small and mid-sized companies located in distressed communities, and one-half from AMCREF Community Capital, a New Orleans-based specialty finance firm providing a range of financial products and services with an emphasis on community economic development and environmentally responsible investments.

The NMTC investment will be to Hendry BN Construction & Fertilizer Services, LLC, a newly formed subsidiary of BioNitrogen Holdings Corp. The proceeds of the financing 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 and will directly support the development of the site manufacturing facility that will generate an expected additional 47 full time jobs.

"The investments from Enhanced Community Development and AMCREF are pivotal for BioNitrogen," said Bryan Kornegay, Jr., President and CFO of BioNitrogen. "They will facilitate the acquisition of equipment and infrastructure to begin operations, create jobs and generate revenue for our business and Hendry County, Florida."

"We are excited to support BioNitrogen," said Richard Montgomery, Managing Director at Enhanced Community Development. "We believe that BioNitrogen is well positioned to continue to execute its growth plans that will result in significant job creation and other important economic development impacts for the distressed rural community."

"This transaction marks the next phase of growth for BioNitrogen," said Susan Seagren of AMCREF. "We have been working with the BioNitrogen team on their plans over the last year and look forward to expanding our relationship in the near future. BioNitrogen is currently developing multiple other projects that will bring high quality jobs to additional low-income communities in rural Florida and Louisiana."

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 Enhanced Capital
Enhanced Community Development's controlling entity is Enhanced Capital. Headquartered in New York City, Enhanced Capital is a diversified private investment firm focused on established small and mid-sized companies overlooked by traditional sources of capital due to location or size. Since 2000, Enhanced Capital's funds have financed businesses through a variety of state and federal public-private investment programs, including its federal SBIC fund. For more information, visit www.enhancedcapital.com.

About AMCREF Community Capital
AMCREF Community Capital, LLC, is a specialty finance firm providing a range of financial products and services, including New Markets Tax Credits (NMTCs). As a mission-driven firm, AMCREF focuses on community economic development and environmentally responsible investments. Formed in 2005, AMCREF has received five allocations of NMTCs from the US Treasury Department and has deployed over $250 million in federal and state NMTC-enhanced capital since inception. AMCREF targets startup, early-stage, and innovative businesses and projects that generate employment opportunities while providing environmental, economic and community benefits in low-income areas throughout the Southeast. For more information, visit www.amcref.com.

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.

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