Algae.Tec Limited (ASX:AEB, OTCQX: ALGXY) has received a show of confidence from its largest partner Reliance Group (BSE:500325, NSE:RELIANCE), which is subscribing for shares and options totalling $2.4 million.
Reliance is one of India’s largest publicly traded companies with businesses in the energy and materials value chain delivering annual revenue in excess of US$66 billion.
Proceeds from the second subscription agreement will be used to provide additional working capital for the fast development of an algae pilot plant in Jamnagar, India.
This will use Algae.Tec’s technology for the creation of biofuel and is expected to be fully operational in 2015.
Algae.Tec has signed an immediate agreement to raise A$1.4 million via the issue of 20 million shares at $0.07 cents per share to Reliance.
It is also issuing 14,285,714 options exercisable at $0.07 each.
Reliance must exercise 7,142,857 of these options 5 months after 18 December 2014 and subsequently 10 months after 18 December 2014.
View original article at: Algae.Tec secures $2.4M from Reliance Group to develop algae pilot plant