Kreido Biofuels, Four Rivers BioEnergy Complete Asset Sale
CAMARILLO, CA. --- Four Rivers BioEnergy, based in Kentucky, has purchased nearly all of the assets of Kreido Biofuels.
California-based Kreido Biofuels is known for developing the STT system, a proprietary process that offers a modular biodiesel production system.
Four Rivers acquired Kreido's spinning tube-in-tube STT reactors and STT technology, as well as its modular biodiesel production plant equipment and related assets.
The purchase price for the assets was approximately $2.8 million in cash, 1,200,000 shares of Four Rivers BioEnergy common stock (including 300,000 shares in escrow solely to cover Kreido warrant exercises), a warrant to purchase an additional 200,000 shares of Four Rivers BioEnergy common stock at $8.00 per share, and the assumption of certain purchase orders. The cash proceeds will be used to settle obligations to creditors.
The Four Rivers BioEnergy common stock and warrants will be held by Kreido for 360 days, after which time the shares may be sold or distributed.
With the completion of the asset sale to Four Rivers BioEnergy, Kreido released Philip L. Lichtenberger, chief operations officer, from his obligations to Kreido.
Gary Hudson, CEO of Four Rivers BioEnergy, said: "We are excited about our acquisition of this transformational technology. We believe that the STT technology and the biodiesel plant equipment will help to accelerate the development of Phase I of our multi-product, integrated bioenergy facility near Calvert City, Kentucky."
The sale of assets was approved by the Kreido stockholders at the company's annual meeting held on March 4. At that meeting, stockholders also re-elected Ben Binninger, Betsy Wood Knapp, David Mandel and David Nazarian as directors.
"The transfer of Kreido's technology and assets to Four Rivers BioEnergy is consistent with our goals of satisfying our obligations to creditors and allowing our stockholders, through our ownership of Four Rivers BioEnergy stock and warrants, an opportunity to benefit from their loyal support of the STT technology," said Ben Binninger, Kreido's CEO.