Algae.Tec lands purchase order from investor affiliate for $2.4M
Algae.Tec Ltd announced receipt of its first purchase order from an affiliate of Reliance Industrial Investments and Holdings Ltd. in connection with arrangements announced in January, which involve RIIHL investing in Algae.Tec, bringing the Australian company’s technology to India and establishing its Global Biofuels Division.
The $2.4 million purchase order is for the supply of certain algae production technology and associated technical expertise, according to Algae.Tec.
The work and equipment ordered under this purchase order is expected to be supplied and completed over the next nine months.
In January, RIIHL was issued $1.5 million worth of shares in Algae.Tec and $5 million of options with both the shares and option exercise price being set at the 90 day volume weighted average share price, which equates to 16.3 cents per share. RIIHL will make additional investments by exercise of $1.2 million of options over the next two years, according to Algae.Tec.
The technical and equipment supply agreements detail the technical goals that Algae.Tec will have to meet and the costs that RIIHL will pay for the pilot plant and technical supervision. Peter Hatfull, Algae.Tec’s managing director, said the new biofuels facility to be built in India will be fully funded by RIIHL, leaving the equity injection to be used solely for working capital purposes.