SOURCE: Vega Biofuels

September 15, 2014 09:15 ET

Vega Biofuels Provides Update to Shareholders

Second Shareholder Conference Call Planned to Discuss Status of Recently Announced Projects

NORCROSS, GA--(Marketwired - Sep 15, 2014) - VEGA BIOFUELS, INC. (PINKSHEETS: VGPR) provides the following Update to Shareholders and announces second shareholder conference call to discuss the status of recently announced projects.

Vega currently conducts business in two specific areas; The Company recently announced that it has entered into a Joint Venture with Agri-Tech Producers, LLC to build and operate a green-energy manufacturing plant that will produce a renewable energy product called Bio-Coal using special technology called torrefaction. The plant is being constructed in Allendale, SC.

The Company also markets a product called Biochar that is also made from timber waste and is used as a soil enhancement for various agricultural industries to increase crop yields. The Biochar that Vega markets is currently being manufactured by Colorado based, Biochar Now, LLC.

The following is an update on current projects in both areas of our business:

Allendale, SC torrefaction plant: The project is under way and our plan is to have the plant up and running during the first quarter of 2015. The plant is being constructed on the site of an existing lumber manufacturing facility. The torrefaction machine is being manufactured by Kusters Zima Corporation in Spartanburg, SC. Vega has an agreement in hand from a European power company to sell 50,000 tons of Bio-Coal annually for five years. The five year deal is valued at approximately $60 million dollars. In addition, Vega has an agreement to ship 3,000 tons of Bio-Coal to a European client as a test order. This agreement is valued at approximately $700,000. The Company is currently in negotiations with a European transportation firm to deliver the product from the Port in Rotterdam to the end client.

The Company recently announced that its joint venture partner, Agri-Tech Producers, LLC has developed a new and patent-pending process that dramatically reduces the cost of some of the biomass feedstock for the Company's Allendale, SC pilot torrefaction plant. As a way to dramatically reduce biomass feedstock costs, while substantially expanding the availability of nearby forest and bio-crop acreage, ATP has developed a new, patent-pending, combined Site Remediation Biomass and Bio-Coal Production (SRBBP) Process, which uses the phytoremediation powers of the roots of certain fast-growing trees and bio-crops that have been planted to clean contaminated sites. This process will have a direct impact on the Company's profit margin for its Bio-Coal product.

While the Allendale plant is being constructed, the Company continues to market Biochar to many different agricultural industries. Testing is currently being done by several large clients and the results will be announced as soon as this information is available.

The Company is in negotiations with two different entities concerning very large orders for Biochar that would make the Company's product available in retail outlets throughout the United States. Vega recently announced that it is assisting Biochar Now, LLC in increasing its manufacturing capacity to accommodate the amount of Biochar being sold by Vega through a Reseller Agreement that the Company now has with Biochar Now.

The Company recently announced that it was conducting a Private Placement to raise $1 million to help fund its projects. To date, approximately $380,000 has been committed and the Company's plan is to complete the PPM by the end of September. A portion of the proceeds from the Private Placement will be used to increase the manufacturing capacity of Biochar Now. The balance will be used to expedite the construction of the Allendale torrefaction plant.

Vega has hired an International Sales Manager that will create a network of businesses and individuals that will market the Company's Biochar product to clients around the world.

In an effort to provide as much transparency as possible on the Company's projects, Vega's management team will hold a second shareholder conference call to discuss more details of the Company's ongoing business. The conference call is scheduled for Sunday, September 28, 2014. Details on how to participate will be posted on the Company's Twitter account @vegabiofuels and on the Company's website, vegabiofuels.com in the coming days. Topics to be discussed are recent acquisitions, the Biochar business, the Bio-coal business, and funding.

Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "plan," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.

Contact Information

  • CONTACT:
    Vega Biofuels, Inc.
    800-481-0186
    Email Contact
    vegabiofuels.com
    @vegabiofuels