Viridis Energy Forms Subsidiary to Broker Alternative Energy Transactionsadmin
Vancouver, BC – November 20, 2013 – Viridis Energy Inc. ("Viridis" or the "Company") (TSXV: VRD), a "Cleantech" manufacturer and distributor of renewable energy providing waste biomass fuel to global residential and industrial markets, announced today that is has formed a wholly owned subsidiary, Viridis Merchants Inc., to arrange transactions between buyer and sellers of alternative energy, including wood pellets. The Company has hired commodities trading specialist, Jesse Harte as Managing Director, Wholesale division of Viridis Merchants. Doug Middleton, who currently manages the U.S. brokerage business for Viridis, has been appointed Managing Director, Retail division of Viridis Merchants. Christopher Robertson, Viridis’ CEO, will also serve as president of Viridis Merchants.
"The wood pellet industry represents a classic merchandising opportunity in its early stages. Viridis intends to expand its brokerage business, which currently utilizes several third party producers, to include locational differentials, supply and demand imbalances and aggregation opportunities to increase its overall participation," said Mr. Robertson, "In addition to brokering transactions between buyers and sellers, Viridis intends to augment its production capacity, currently approaching 200,000 tons per year from its Okanagan Pellet and Scotia Atlantic Biomass Companies, with third party suppliers’ products of equal quality to develop additional brands in the residential market."
Mr. Robertson added, "Since the business model is that of a broker, the gross margins generated from Viridis Merchants are expected to be lower than our core business; however, the operating margins should be significantly higher since there are minimal incremental operational costs associated with the business."
Mr. Harte joins Viridis Energy with over 25 years’ experience in the physical and financial commodities markets. Mr. Harte recently has been involved in the crude oil, carbon, power, and biomass sectors. He spent six years with the Royal Bank of Scotland’s ("RBS") trading units, most recently as Global Head of Commodities Sales, where he led the firm’s global commodities futures platform which included commodities financing. Mr. Harte also served as a senior vice president of RBS Sempra Commodities during which he implemented its merchant biomass business. Prior to RBS Mr. Harte traded for Duke Energy Merchants, was a Senior Vice President Energy Products for Daiwa Securities; and president of Bay Area Petroleum, an energy brokerage firm. Mr. Harte received a Bachelor of Science degree in Agricultural Resource Economics from the University of Maine and served as a member of the New York Mercantile Exchange’s board of directors between 1999 and 2005.
"The market for brokering wood pellets and other renewable energy commodities is in its developing stage. Commercial users of wood pellets, such as energy producers, are securing sources of wood pellets to fill co-firing needs mandated by recent legislature. This is a prime opportunity for Viridis to secure its position as a leading source of wood pellets and other renewable energy sources," said Mr. Harte.
Commenting on the new appointments, Mr. Robertson said, "The retail division of Viridis Merchants has been largely developed by Doug Middleton over the past five years as he has built a solid presence in the northeast US residential space. The addition of Jesse allows us to expand on that to include both the European and Asian markets in both wholesale and retail, which I believe will contribute to the company’s financial results in the 2014."
Viridis Investor Contact:
Yvonne L. Zappulla
Grannus Financial Advisors, Inc.
Chief Financial Officer
Viridis Energy Inc
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About Viridis Energy Inc.
Viridis Energy Inc. (TSXV: VRD) is a publicly traded, "Cleantech" alternative energy company specializing in the agricultural and wood waste biomass. Located in Vancouver, B.C., Viridis Energy operates Cypress Pacific Marketing, Okanagan Pellet Company and Scotia Atlantic Biomass, thus providing the company with vertical integration for distribution and manufacturing as well as coast to coast national presence. For more information on Viridis Energy Inc. please refer to the company website at www.viridisenergy.ca.
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s future operations. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a continued downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties associated with the demand for biofuels, (3) the risk that the Company does not execute its business plan, (4) inability to finance operations and growth (5) inability to finance the start-up operations in Nova Scotia in a timely manner (6) inability to retain key management and employees, (7) an increase in the number of competitors with larger resources, and (8) other factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release and the Company intends to update such forward looking information in the Company’s MD&A in the event that actual results differ materially from such forward-looking statements contained herein. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company’s MD&A filed with Canadian securities regulators.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Posted: November 20th, 2013 under ACCESSWIRE.