NewGen Agrees to Terms for $70 Million in Senior Debt Financing to Fund APPCO Acquisition and Pursue Additional Strategic Initiativesadmin
NewGen Technologies, Inc. announced that it and BioFuel Investments, LLC (“BFI”) reached an agreement relating to $70 million in secured debt financing.
Proceeds from the financing will be utilized to complete the purchase of Appalachian Oil Company (“APPCO”), pay off existing debt and other strategic objectives to facilitate distribution of premium blended biofuels through its brand ‘ReFuel America’.
BFI’s proposed financing facility would be for a 10-year term with an interest rate of 10%, interest-only for the first 2 years. In addition, BFI will receive a warrant to purchase 5,000,000 shares of NewGen’s common stock at a price of $2.00 per share.
BFI is part of an international private investment group focused on environmentally friendly, renewable biofuel and alternative energy projects. The BFI financing is expected to be completed quickly, contingent upon customary business due diligence and completion of commercial definitive agreements.
“The acquisition of APPCO allows ReFuel to capitalize on the existing APPCO supply chain distribution to over 200 outlets for our premium blended biofuels,” said Michael F. D’Onofrio, COO of NewGen.
“We are extremely pleased with BFI’s decision to finance the acquisition of APPCO,” stated S. Bruce Wunner, CEO of NewGen. “BFI’s investment shows support for NewGen’s business plan and the management’s ability to execute. Upon successful closing of this transaction, we expect to roll out additional strategic initiatives. Our next targets will focus on upstream supply to compliment our global ‘Fields to Wheels’ business plan.”
About NewGen Technologies, Inc.
NewGen’s mission is to be a leading global vertically integrated manufacturer and distributor of premium biofuels and hydrocarbon blends that are intended to dramatically reduce the environmental and economic impact of world petroleum use. NewGen believes that it has developed the cleanest burning and highest performing fuels in the world by utilizing its own technology that allows for more complete combustion.
The vision of NewGen and ReFuel America, NewGen’s wholly-owned U.S. subsidiary, is a world less dependent on oil, using secure, renewable, homegrown fuels which better preserve our most important resources – the air we breathe and water we drink.
Additional information can be found at the company’s websites – www.newgenholdings.com & www.refuelamerica.com & www.actanolbio.com & www.ip-fischer.de & www.newgenasia.com.sg
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Source: NewGen Technologies, Inc.