SOURCE: Methes Energies International Ltd.

Methes Energies International Ltd.

December 09, 2013 09:00 ET

Methes Energies Signs Letter of Intent to Acquire the Assets of OTC Energy Technologies Inc.

LAS VEGAS, NV--(Marketwired - Dec 9, 2013) - Methes Energies International Ltd. (NASDAQ: MEIL), a renewable energy company that offers an array of products and services to biodiesel fuel producers, today announced that it has signed a Letter of Intent to acquire the assets of OTC Energy Technologies Inc. ("OTC"), including all of OTC's technologies and knowhow relating to the conversion of several types of biomass into a chemical quality syngas which can be converted into renewable alcohols such as ethanol and methanol, renewable hydrocarbons such as jet fuel and gasoline. The assets also include an existing pipeline of potential clients that Methes intends to quickly pursue. The addition of OTC technologies to Methes' portfolio of products will allow Methes to compete more fully in the multi-billion dollar renewable fuels market, and to start to compete in the multi-hundred billion dollar general transportation fuels market.

The goal of the Company is to make small and medium size processors available to clients where large scale facilities are not feasible because of the typical high set-up costs associated with such projects, as well as the availability of biomass required to operate a facility. Methes believes that this acquisition will be a perfect match and will enhance its current technology portfolio. The focus of the Company will remain the same -- to provide small and medium size solutions to clients involved in the alternative and renewable energy sector.

John Loewen, Vice President of Operations at Methes Energies said, "We are first and foremost a technology company, and we are proud to be adding to our portfolio this way. We are excited about the opportunity to offer a smaller solution to people that don't have the $100's of millions typically associated which such projects. What we've seen at their small scale facility is truly amazing, and our goal is to quickly package and deploy turn-key solutions similar to our biodiesel processors. We look forward to the completion of this transaction which we expect will bring substantial revenues and in turn create significant value for our shareholders."

Paul Goodrow, President of OTC Energy Technologies Inc. continued, "What attracted us to Methes was their proven ability to turn innovative process designs into working, efficient production plants. We believe that the OTC technology has the potential to be a low cost producer of renewable and alternative fuels. And we believe that smaller, modular plants and low costs are not mutually exclusive. We anticipate that our hydrocarbon fuels will be cost competitive with, and will prove to be an acceptable replacement for crude oil derived transportation fuels. We look forward to working with Methes to rollout what we think will be a game changing business model."

The terms of the transaction were not provided and are subject to a non-disclosure agreement until such time as a definitive agreement is signed. The transaction is subject to customary due diligence by the Company which has already retained an Engineer to assist with the process.

About Methes Energies International Ltd.

Methes Energies International Ltd. is a renewable energy company that offers a variety of products and services to biodiesel fuel producers. Methes also offers biodiesel processors that are unique, truly compact, fully automated state-of-the-art and continuous flow that can run on a wide variety of feedstocks. Methes markets and sells biodiesel fuel produced at its showcase production facility in Mississauga, Ontario, Canada and at its recently commissioned 13 MGY facility in Sombra, Ontario, to customers in the U.S. and Canada, as well as providing multiple biodiesel fuel solutions to its clientele. Among its services are selling commodities to its network of biodiesel producers, selling their biodiesel production and providing clients with proprietary software to operate and control their processors. Methes also remotely monitors the quality and characteristics of its clients' production, upgrades and repairs their processors and advises clients on adjusting their processes to use varying feedstock to improve the quality of their biodiesel. For more information, please visit www.methes.com.

This press release contains forward-looking statements regarding future events and financial performance. In some cases, you can identify these statements by words such as "may," "might," "will," "should," "except," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of these terms and other comparable terminology. These statements involve a number of risks and uncertainties and are based on numerous assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. There are or may be important factors that could cause our actual results to materially differ from our historical results or from any future results expressed or implied by such forward looking statements. These factors include, but are not limited to, those discussed under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended November 30, 2012, filed on February 25, 2013, as amended, which is available at the U.S. Securities and Exchange Commission website at www.sec.gov. The forward-looking statements in this press release are based upon management's reasonable belief as of the date hereof. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

Contact Information

  • Contacts:
    Methes Energies International Ltd.
    Michel G. Laporte
    Chairman and CEO
    702-932-9964