Bisan Limited (ASX:BSN) will acquire an equity interest in P-Fuel Limited, an Australian unlisted public company that holds patent rights to technology for conversion of waste plastics and waste oils into diesel.
The company and P-Fuel have entered into subscription agreement under which Bisan will subscribe for 10,000,000 new ordinary shares in P-Fuel, resulting in a 9% stake.
In addition, Bisan will acquire a further 5,250,000 P-Fuel shares from an existing P-Fuel shareholder.
Settlement of $335,000 will occur immediately, for a total holding 13.8% of P-Fuel’s issued capital.
The company sees significant scope for growth and market opportunity to be explored in the diesel and fuel industry, which will be available to Bisan through its investment in P-Fuel.
As advised on 13 November 2013, Bisan has appointed Foxfire Capital as lead manager to place remaining shortfall shares from a recent capital raising, with 9,500,000 shares placed to date, and an additional 39,200,000 shares applied for at $0.01 to raise $392,000.
The P-Fuel Acquisitions will be funded from the proceeds from this tranche of Bisan’s shortfall placement.
Bisan is currently capitalised at around $1.5 million.
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