Syntec Biofuel Inc. (OTC BB: SYBF), formerly NetCo Investments, Inc. (OTC BB: NIVS), announced today that it has terminated the acquisition agreement entered with Syntec Biofuel Inc. (Syntec Biofuel Canada) dated April 7, 2006.
The cancellation was due to NetCo Investments’ inability of closing the minimum required US $500,000 financing to complete the acquisition.
On April 7, 2006, NetCo Investments announced the signing of a definitive purchase agreement to acquire all the assets, including patents of Syntec Biofuel Canada, a scientific research company that has developed and patented a Catalyst to convert Syngas into Ethanol.
NetCo Investments had agreed to issue 15,700,000 shares in exchange for 100% of Syntec Biofuel Canada assets and it would assume the liabilities of Syntec Biofuel Canada.
The acquisition would have been constituted as a reverse take-over (RTO) of NetCo Investments by Syntec Biofuel Canada. The shareholders of Syntec Biofuel Canada would have owned approximately 65% of the combined company if the acquisition were to proceed and complete.
Following the acquisition announcement, NetCo Investments proposed to close a US $1 million private placement to provide funding for the development of the catalyst being acquired from Syntec Biofuel Canada.
The private placement had since been scaled up to US $2 million.
On July 12, 2006, NetCo Investments shareholders ratified the acquisition agreement. NetCo Investments, Inc. subsequently changed its named to Syntec Biofuel Inc.
The closing of the acquisition is subject to NetCo Investments raising a minimum of US $500,000 within 60 days. Failing that, the agreement would be reversed and the assets and liabilities transferred back to Syntec Biofuel Canada and Syntec Biofuel Canada transferring back the 15,700,000 common shares issued as purchase consideration.
With the termination of the acquisition agreement, NetCo Investments/Syntec Biofuel did not say if it will change to present name.
Burnaby, BC based Syntec Biofuel was established in 2001 at the University of British Columbia as a scientific research company.
Syntec Biofuel has received research funding from NRcan and NRC.
Syntec said its patented thermo-chemical catalyst can be used for the production of ethanol from syngas derived from a host of renewable resources including waste gases, biogas, municipal solid waste and virtually any type of low-cost, cellulosic material including wood waste (hardwood/softwood), agricultural residues or DECs (Dedicated Energy Crops).
