Wasabi to Sell 11% Stake in Australian Renewable Fuels to Lignol

Wasabi Energy Ltd. (WAS), an Australian company investing in renewable energy, agreed to sell its 11 percent stake in Australian Renewable Fuels Ltd. (ARW) to Canadian biofuels company Lignol Energy Corp. (LEC)

Wasabi will sell 275 million shares in Australian Renewables for C$4.30 million ($4.33 million) to Vancouver-based Lignol, Wasabi said in a regulatory statement today. Prior to the agreement, Wasabi was Australian Renewable’s largest shareholder.

The transaction includes C$500,000 in cash, 19 million common shares of Lignol issued at C$0.08 a share and a 10-month secured convertible debenture for C$2.25 million, Wasabi said.

Wasabi said in June that it was raising money to develop projects and provide working capital. Wasabi owns the intellectual property of the Kalina Cycle, which is used to produce electricity from low heat sources. The technology can be implemented in geothermal plants, oil refineries, cement plants, steel and metal melting works.

To contact the reporter on this story: Chisaki Watanabe in Tokyo at cwatanabe5@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.