Canary Biofuels raises finance and closes on Invigor Bioenergy acquisition
In Canada, the newly formed Canary Biofuels Inc (Canary) has announced that it has completed a CA$16.5 million non-brokered private placement equity financing, closed on the acquisition of Invigor Bioenergy Corporation, which owns a biodiesel facility in Alberta (AB), and entered into an agreement with Canadian Western Bank (CWB) providing for a credit facility with CA$7 million of borrowing capacity.
According to a statement, Canary Biofuels has completed a non-brokered private placement of 16.5 million common shares at CA$1.00 per share for total gross proceeds of approximately CA$16.5 million.
Due to strong demand, from a combination of strategic investors including feedstock suppliers, global institutional investors, and retail investors, the financing was increased from its initial target of CA$10 million.
With the completion of the transactions, Canary Biofuels will leverage the “best of Western Canadian expertise” in both agriculture and energy to create an industry-leading biodiesel production company.
We are excited to showcase how Western Canadian expertise in both the agriculture and energy sectors can help reduce carbon emissions at scale for both Alberta and North America. We will use our local expertise to produce green energy products that are seeing increasing demand from around the world, while at the same time, reducing waste and carbon emissions, said George Wadsworth, President, and CEO of Canary Biofuels.
Retrofit biodiesel plant
Canary Biofuels will use the net proceeds from the financing to convert the acquired biodiesel facility such that phase 1 of the facility will have the capacity to produce 75 million litres of second-generation biodiesel using agricultural waste feedstock including animal fats and used cooking oil (UCO).
By using waste products, the company will provide additional sources of revenue to local western Canadian agricultural producers, with the added benefit of producing a high-demand energy product that will reduce carbon emissions at scale. Canary intends to have the biodiesel facility producing at full capacity by year-end.
These transactions represent the first step in creating a platform with which we plan to grow our biodiesel production capabilities, and we are pleased to have established partnerships with CWB, key institutional investors, and key strategic investors, which will help ensure we are well-financed, and well supplied, to build a successful business, said George Wadsworth.
Eight Capital acted as an exclusive financial advisor in respect of the financing, acquisition, and credit facility while Stikeman Elliott LLP acted as counsel to Canary in respect of the financing, acquisition, and credit facility.