Under the terms of the agreement, Imperial Petroleum will pay two million shares of its common stock and issue promissory notes in an amount of $3.5m to the owners of e-biofuels for 100% control of the company.
The principal management of e-biofuels will remain in place and e-biofuels will become a wholly-owned subsidiary of Imperial Petroleum. In 2009, e-biofuels had revenues of approximately $19.9m on biodiesel sales of about seven million gallons, resulting in a net loss of $1.9m. The company currently has approximately $15m in debt.
Jeffrey Wilson, president of Imperial Petroleum, said: “We’re very excited about e-biofuels and its management joining our company. Through our research and development efforts over the last four years in the biofuels arena, we have developed some ground-breaking patented and proprietary process technology for the manufacture of biodiesel from waste oils high in free fatty acids and for the manufacture of bio-based jet fuels. We believe our processes will significantly improve the economics of the e-biofuels plant.”
