CITY OF INDUSTRY, CA--(Marketwired - Jul 27, 2016) - Earth Gen-BioFuel (OTC PINK: EGBB), "EarthGen" or "the Company," today announced that it has agreed to open offices with Gionesis Pte. Ltd. of Singapore to manage its Southeast Asia operations. Gionesis has agreed to be the lead funder of four new joint venture castor bean farms.
George Shen, Chairman, commented, "In anticipation of EarthGen's expanded Castor Bean Farming and Agarwood harvesting operation in Southeast Asia, we have arranged to work closely with the Singapore based consulting group Gionesis. As we pursue our goal of rapid growth, this relationship will give Earth Gen access to local business advisors, experienced agricultural managers and local access to a major financial center."
Gionesis will be working with EarthGen's new operating subsidiary Earth-Eco Agriculture Inc. to manage non-castor bean farming operations. This new subsidiary is allowing EarthGen management to focus on new business opportunities without taking resources away from EarthGen's core Castor Bean operations. Gionesis has also agreed to complete a best efforts financing by selling farming interest to build 4 new 2500-acre castor bean farms in Southeast Asia in joint venture with EarthGen. EarthGen is providing all agricultural services and product sales. Each of the farms when fully planted is estimated to produce over $3,000,000 in castor bean sales per year, which could add up to $12 million in new revenue. Based on these estimates, Earth Gen's estimated distributions from these farm operations should be $5 million per year. The 4 farms when funded and completed will have the ability to provide a revenue stream to EarthGen for the life of the farm, which is under contract for a 12-year term with an option for 12 additional years.
About Earth Gen-BioFuel
Earth Gen-Biofuel Inc., a U.S. based international agribusiness company, is cultivating Castor Bean farms in Southeast Asia. Castor Beans are a renewable resource as a non-food agricultural product used in manufacturing clean transportation fuel, and utilized in over 700 manufacturing processes. EarthGen's goal is to become one of the world's largest growers of Castor Beans. Our first operation includes 600-acres of Castor Bean farms in Laos, with a full-scale harvest scheduled for year-end 2016. The Company plans to expand company owned operations to 4,000 acres over the next two-years and 10,000 acres of farm partnerships, which is expected to make Earth Gen one the largest operators in the area. Worldwide demand continues to grow, due to high demand for manufactured products using Castor Bean oil and the crops value as a renewable "energy crop."
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.