ALGA signs $5 million financing deal
July 23, 2013
lgae International Group, Inc. (ALGA), a development stage renewable energy company located in Addison, Texas, has signed a $5,000,000 Reserve Equity Financing agreement with AGS Capital Group, LLC, a US-based specialist investor group, to enable growth with financing for its algae cultivation and development project in California. The company is seeking to develop biofuel from algae utilizing a process that combines methane, CO2, fuel cells, nitrates, phosphates, sunlight and a specialized press to remove biomass and create HRD and HRJ fuel.
“The Reserve Equity Financing is a long-term strategic financing partnership that places ALGA in control of how and when we raise equity, minimizing any potential dilution or disruption to our capital structure,” said John Potter, ALGA President. “ALGA has the discretion to periodically sell common shares at a (10%) ten percent discount to the market when the prices are attractive to us. That means we decide when the funds are raised and how the funds are utilized. AGS Capital Group is a great long-term partner that helps us reduce financing uncertainty and allow management to focus on achieving our business objectives. The $5,000,000 equity financing should provide us with sufficient capital to complete our initial algae project in Tulare. CA.”
Allen Silberstein, Chief Investment Officer of AGS Capital Group, LLC, said, “We look forward to helping ALGA grow by providing them the funding for their initial algae project and for the acquisition and development of additional algae properties into the future.”