Algae.Tec obtains greater access to U.S. market with OTC-QX listing

Thursday, February 23, 2012 by Angela Kean

Algae.Tec (ASX: AEB) has increased its investor reach with a listing on the United States’ third highest traded market, the OTC-QX.

The OTC-QX platform provides Algae.Tec convenient access to the U.S. market at a time when the company, which was one of the best performing IPO’s in 2011, is looking at securing country-wide agreements in the U.S., Australia and Brazil for its algae-to-biofuels technology.

OTC-QX is one of three OTC Markets Group platforms which in total trade over 10,000 securities with an aggregate market capitalisation exceeding US$10 trillion.

It is the world's largest electronic marketplace for broker-dealers to trade over-the-counter stocks. More than US$144 billion in total volume of securities were traded on the OTC platform in 2010.

The company will trade its American Depositary Receipts under the ticker ALGXY.

Importantly, Algae.Tec continues to generate interest in its technology, recently attracting one of the largest carbon dioxide emitting nations, China, as a partner to build the first biofuels and carbon capture facility in the country.

Shandong Kerui Group Holding will be putting half the equity into the project, demonstrating strong commitment to the project on their part.

The 250-module biofuels facility will be built in Dongying, in Shandong Province, and will produce about 33 million litres of algae derived transport oil and 33,000 tonnes of biomass per annum at a combined value of over $40 million.

It will capture 137,000 tonnes of waste carbon dioxide.

The facility will be the first of many, with the joint venture accelerating the Algae.Tec project expansion and rollout throughout China, targeting corporations and environmental authorities.

Algae.Tec has also secured $5 million after the successful completion of a placement to sophisticated investors through Patersons Securities to fund the fast tracking of its recently announced commercial projects.

The company is now well funded as it continues to talk to groups about offtake agreements, supply and country-wide joint venture arrangements.

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