Alliance Bioenergy Plus, Inc. (OTCQB: ALLM) owns and operates bioethanol plants across the United States. Shares of the bioethanol plant operator are rallying 11.43%, through early trading on Wednesday, July 12, 2017. Over the past month, Alliance Bioenergy Plus, Inc. saw average daily volume of 130,146 shares. However, volume of 151,450 shares or dollar volume of $59,065, has already exchanged hands on the day.
Shares of Alliance Bioenergy Plus, Inc. are rallying today, after the company announced it has received approval from the U.S. Department of Agriculture Office of Rural Development to purchase a closed ethanol facility in Indian River County, Florida. Included within purchase is the ethanol plant, 143 acres, all equipment, and vehicles. Here is the full press release detailing of the approval to purchase the ethanol plant in Florida:
Alliance Bioenergy Plus, Inc. Press Release:
WEST PALM BEACH, FL / ACCESSWIRE / July 11, 2017 / Alliance Bio-Products, Inc. (“Bio-Products”), a subsidiary of Alliance Bioenergy Plus, Inc. (OTCQB: ALLM), today announced it has received approval from the United States Department of Agriculture (USDA) Office of Rural Development (“USDA Rural Development”) for the collateral purchase of the closed ethanol facility in Indian River County, Florida. The approved purchase includes the fully functional plant, 143+ acres that the plant resides on, and all related equipment and vehicles.
The Company made an offer to purchase the eight Million Gallon Per Year (8MMGY) ethanol facility with the intention of converting the current process into its patented Cellulose to Sugar (CTS) process under an agreement with Alliance BioEnergy. By renovating the plant and utilizing a state-of-the-art fermentation and distillation system already in place, and with an abundance of free feedstock available, Bio-Products believes it can increase production capacity and profitability of its sustainable, environmentally friendly alternative to petroleum-based fuels and other products. The plant also sits on a large parcel of land that would allow Bio-Products to expand as demand increases.
“Through renovation and the implementation of our revolutionary CTS process, we’ll be able to expand our production capacity while also shortening turnaround times – a key to ramping up production quickly and bringing our product to market at scale,” said Ben Slager, Chief Technology Officer, Alliance Bio-Products, Inc. “We have long had the most innovative technology on the market in regards to biofuel production, but did not have the means to fully utilize its potential until now. Combining our industry leading technology with a plant of this capacity will allow us to meet the growing needs of the market.”
The Company’s patented CTS process allows it to produce biofuels for less than $1 per gallon that are 100% CO2 neutral, because of the process, and have 85-95% less greenhouse gases than petroleum-based products. Bio-Products expects it will be able to begin production at the plant by summer of 2018, potentially generating $25 million in EBITDA and then will look to double capacity to 16 MMGY, potentially generating $54 million in EBITDA in 2020 before maximizing capacity of 34 MMGY, generating $112 million in 2023.
“We are thrilled to have been awarded approval to purchase this plant and take this significant step forward toward commercialized production at scale. By purchasing and renovating an already built facility, we’ll reduce our capital expenditure significantly allowing us to market years ahead of building from scratch,” said Daniel de Liege, Chairman, Alliance Bio-Products, Inc. “We have received tremendous support through our 506(c) equity offering, and expect the opportunity to close quickly now that the purchase has been approved. In combination with some of our other production partnerships in place, we believe we are in a strong position to begin generating significant revenues and bringing increased value to our shareholders.”
The plant purchase will create approximately 100 permanent jobs in the short term, with additional employment opportunities created as production expands. The community will also benefit from an infusion of tax base revenue, as well as support revenue through an increase of usage of trucking, housing, restaurants, suppliers and more. The plant would also help to dispose of green waste that would otherwise fill up the landfill and release millions of tons of carbon dioxide.
The purchase of the plant is being funded through a mixture of debt and equity. The equity portion of the investment is being done via a 506(c) filing that is still open for investor consideration, in order to reduce as much debt as possible. For more information on that opportunity, please visit the offering page.
About Alliance Bio-Products, Inc.
Alliance Bio-Products, Inc. was formed as a special purpose wholly-owned subsidiary of Alliance Bioenergy Plus, Inc. (“ALLM”) to own and operate Bioethanol plants in the United States.
Utilizing ALLM’s patented CTS process Alliance intends to retrofit existing ethanol plants with the mechnocatalytic cellulosic conversion process, transforming them into profitable renewable energy centers that are carbon neutral, waste free and protecting our delicate environment while providing energy and high value co-products. The CTS process enjoys a family of patents centered around the main U.S. patent # 8,062,428. 2032.
Information in this document constitutes 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 risks, uncertainties and other factors are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to Alliance BioEnergy Plus, Inc herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Alliance BioEnergy Plus, Inc. disclaims any obligation to update forward-looking statements contained in this estimate, except as may be required by law.