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