US BioTec Announces Initial Step for Entering Bio-Diesel Market
US BioTec, Inc. (PINKSHEETS: USBO), an emerging player in the rapidly growing bio-chemical sector of the annual multi-billion dollar industries related to agriculture, lawn and garden, and golf course products, announces today it has tendered an acquisition proposal to acquire "Biofuel of Tennessee LLC" an existing bio-diesel manufacturing operation. The bio-diesel operation is capable of processing bio-diesel or B-100 from soy oil, canola oil or animal fats.
"We were impressed with the sophistication of their fuel formulation technology and the plant is equipped and set-up with new cutting edge equipment. The plant is a combination of German, English and American engineering," states Jimmy Joyner, CEO of USBO. "The plant is less than one year old and presently has an estimated annual bio-diesel capacity of 10,000,000 gallons and we can economically expand this volume to approximately 14 million gallons.
"After several months of due diligence dedicated toward evaluating the aspects of acquiring the PHS Group, USBO management and consultants agreed the acquisition of a bio-fuel company was a better fit with the USBO's core products than acquiring a petroleum refinery with significant debt. The bio-fuel concept was even more popular than the small refinery deal among the Company's possible financing candidates, as indicated by the interest USBO has received from investment bankers in NYC about this and other biotech related projects. We are now conducting the due diligence necessary to secure funding and develop strategic alliances for this bio-diesel operation," concludes Mr. Joyner.
Timing for the Company's entry into the bio-fuel industry is well planned as bio-fuels is a hot stock sector and is receiving tremendous interest from various types of investment entities. Government programs promoting the bio-fuels of ethanol and bio-diesel is a well received benefit for manufacturers of these fuels. Government subsidy payments and tax credits combine to provide approximately $1.10 per gallon of total benefits for bio-diesel production. All these factors from the private and government sectors provide validity that these types of eco-friendly and "home grown" fuels are the "new generation" of fuels for America.
The strategic and financial advantages offered to an agriculturally oriented biotechnology company such as USBO through the opportunity to enter the emerging bio-diesel and ethanol markets in their initial stage of growth is readily apparent. The new opportunities this change of fortune offers through new advanced technology, and restructured government incentives, combined with an ecologically minded society, provide uniquely exciting possibilities that form a win-win-win scenario for US BioTec Products, the Producers of America's food, fiber and grain, plus the ecological benefits for the United States as a nation.
US BioTec currently has 32,838,495 shares outstanding.
US BioTec, Inc
Suite 105, 105 Mill Street
Gleason, TN 38229
Tel: (713) 894-1503