Algae.Tec Ltd. has entered into an agreement with China Finance Strategies Investment Holdings Ltd. to get its technology to market in the greater China region, including the People&rsquo;s Republic of China, Taiwan, Hong Kong and Macau. Under the agreement, Algae.Tec announced it will issue an initial convertible bond of USD$500,000 and another USD$5 million in conditional options to CFS upon achievement of certain milestones.
The milestones that need to be met include signing of the first algae plant in China (USD$2 million of options); incorporation of between 20 and 100 algae photo-bioreactor modules (USD$2 million); and surpassing 100 modules (USD$1 million). According to Algae.Tec, the issue of options will be subject to shareholder approval and the options will be exercisable within two years of issuance.
The bond is convertible into Algae.Tec shares at 7.5 cents (Australian) per share. The bond attracts a 12 percent coupon payable annually in arrears and is repayable or convertible after 18 months, according to Algae.Tec. The funds will be for working capital and the further development of algae plants. The additional USD$5 million in conditional options are also exercisable at 7.5 cents (Australian) per option.
CFS is a Hong Kong-based financial institution that invests its own capital, manages investment funds, and provides corporate and financial advisory services. One of its key focuses is the green energy sector.
&ldquo;This is an exciting development for Algae.Tec following on from the company&rsquo;s program with India&rsquo;s Reliance Industries Ltd., and the recent Chinese commitments with the U.S. to curb greenhouse gas emissions,&rdquo; said Algae.Tec Managing Director Peter Hatfull. &ldquo;The Chinese government has stated its intention to assiduously pursue a &lsquo;Blue Sky&rsquo; Policy, with the intent to utilize all technologies and procedures that will reduce greenhouse emissions throughout China. The recent historic commitment between the presidents of both China and the United States to curb greenhouse gas emissions is further, public enunciation of China&rsquo;s strategic objective.&rdquo;
CFS President Simon Hua said, &ldquo;We are very excited to be able to work with Algae.Tec and introduce this world&rsquo;s leading algae technology to China to help clean up its air. I hope our investment and cooperation with Algae.Tec could bring benefits to generations of our people over time.&rdquo;&nbsp;
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Algae.Tec Ltd. has entered into an agreement with China Finance Strategies Investment Holdings Ltd. to get its technology to market in the greater China region, including the People's Republic of China, Taiwan, Hong Kong and Macau.

Algae.Tec positions to enter greater China region

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