Revonergy Inc.
OTC Bulletin Board : RNRG

Revonergy Inc.

January 03, 2011 09:51 ET

Revonergy Inc., Starts New Corporate Communications Program

LONDON, UNITED KINGDOM--(Marketwire - Jan. 3, 2011) - Revonergy Inc. ("Revonergy" or the "Company") (OTCBB:RNRG) today announced that it has started a new corporate communications program that will periodically answer representative shareholder inquiries via news releases and an updated website section.

Revonergy has recently started a corporate communication program. As a result of this program more people are following Revonergy, and we have been receiving quite a number of inquiries. We cannot answer individual questions by direct response. Some of the information to be included in answers could be considered price sensitive and as such should be made available to the entire public, rather than individuals. We have therefore decided to issue news releases in response to most frequently asked questions as well as post the information on our website.

To date the two most common questions have been:

  1. What is the status of Revonergy's projects?
  2. Does Revonergy have any plans to develop business in the United States?

Revonergy's Development Projects

In terms of Revonergy's development projects, the one that is furthest along is the 14MW wood waste to energy project in Ondo State, Nigeria. This project has a full feasibility report. Documentation for requesting tenders for equipment, engineering and construction have been prepared and we have an agreement to pre-sell Certified Emission Reductions ("CERs"). However given the recent developments respecting the intended privatisation of the electricity sector and upcoming elections following the death of President Umaru Yar'Adua, Revonergy prefers to secure a local development partner to provide local management and co-invest. Revonergy has engaged a search firm to locate a suitable local partner.

The US Market

In terms of our plans to develop projects in the United States, this is the Company's number one business priority. We have announced our intent to open an office in the U.S. We have appointed a financial advisor respecting a fund raise which is to support an acquisition. We have been reviewing existing wood waste to energy power plants in many parts of the United States and have conducted our internal due diligence on specific power plants.

Our reason for making acquisitions of existing plants in the United States are as follows:

  1. The plants are already generating income and this income will accrue to Revonergy's benefit immediately upon closing of the acquisitions.
  2. Existing income makes raising capital much easier, with a lower cost of capital (than development capital) and much less dillutive to shareholders.
  3. Expansion and technology upgrades are easier with lower risk and cost of capital when based on the foundation of existing cash flow businesses rather than Greenfield projects.
  4. The United States has virtually no country risk.
  5. The United States is rapidly developing it's legislative framework and financial incentives to support renewable energy.

Revonergy had anticipated closing the first acquisitions in Q4 2010, however end of year share trading activities saw an unexpected drop in share prices. This has resulted in financing terms needing to be re-negotiated. We will continue with our program of acquiring US based power plants and our financial backers continue to support our business plan.

Revonergy appreciates the interest and inquiries from its shareholders and people interested in our Company. We are committed to not only our business, but to undertaking a solid corporate communications program for the benefit of our shareholders.

About Revonergy Inc.

Revonergy Inc. is engaged in the acquisition, development and operation of renewable energy power plants globally. The Company is focused on renewable energy projects that have the potential to generate long-term stable cash flows and renewable energy credits.

Additional information can be found at www.revonergy.com.

IMPORTANT DISCLAIMER: This news release may contain "forward-looking" statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions. Actual results may differ materially from the forward-looking statements in this press release. Additional risks and uncertainties are identified and described in the Company's SEC reports. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and the Company specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events, or circumstances after the date of such statement.

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