Lignol Energy Raises Its Equity Stake In Australian Renewable Fuels

2/13/2013 12:47 AM ET

RTT News

Lignol Energy Corp. (LEC.V: Quote), a technology company in the advanced biofuels and renewable chemicals sector, Wednesday announced its participation in a Private Placement and Rights Offering financing undertaken by Australian Renewable Fuels Limited (ARW.AX) that would lead to LEC becoming one of the largest shareholders in ARW.

On February 7, ARW announced that its proposed takeover bid for all outstanding shares of Wentworth Holdings Limited (WWM.AX) is expected lapse on February 15.

ARW announced it had instead proposed an alternative capital raising mechanism to raise A$12.3 million at A$0.007 per share, comprising an immediate private placement of A$4.27 million and an underwritten rights offering of A$8 million to ARW shareholders at A$0.007 per share with the ability of shareholders to apply for oversubscriptions.

The ARW Placement of A$4.27 million successfully closed on February 12 and the ARW Entitlement Offer is expected to close on March 5. Through these transactions, LEC intends to make a further investment in ARW of around A$2.67 million.