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MONTREAL -- (MARKET WIRE) -- 02/05/07 -- Alcar Chemical Group Inc. (PINKSHEETS: ACMG) announces today that it is working with Bajaj Hindusthan Ltd. towards a licensing agreement of its technology for the production of ethanol.
According to the company, ACMG and BHL have begun work to optimise the process for ethanol production from by-products of the sugar manufacturing process to progress towards a multi-year and multi-site licensing agreement. The company expects to close this licensing agreement, estimated to increase ACMG annual revenues by $30 million US, on or before June 15, 2007.
With an annual production rate of 1.8M metric tons of sugar, Bajaj Hindusthan Ltd. is one of the most prominent sugar manufacturers in the world, a company with a strong environmental consciousness that is already valorizing its molasses using conventional technologies to produce 180K metric tons of ethanol per annum. BHL has ambitious plans to become the world leader in sugar, ethanol and bio-chemicals manufacturing using eco-friendly technologies. The company stated that an economically viable solution will be achieved within 4 to 6 months.
"This is an exciting and welcome development," stated Dr. Cavasin. "To be able to work with such an environmentally conscious company towards a licensing agreement of our technology is everything I could have hoped for as this truly demonstrates that economically viable ecological solutions are quickly becoming a reality even among the biggest corporations. The great potential deal for ACMG is a great step towards a clean planet for our children," further added Dr Cavasin.
It should also be noted that ACMG has received a competing bid from a South East Asia Consortium for the acquisition of the majority controlling interest of ACMG, the competing bid was set at a premium from the USSE offer, which represented approximately $2.00 per share. The company expects to disclose the name of the consortium and the offer once all terms and conditions have been established and a letter of intent signed. The letter of intent is expected to be executed on or before February 15, 2007.
About The Alcar Group
The Alcar Chemicals Group (PINKSHEETS: ACMG) represents a significant market opportunity due to a serious worldwide supply shortage of raw materials for polymers as well as an increased requirement for ethanol and biodiesel. ACMG has been concentrating on innovative methods for biomass (forestry waste, agricultural waste and non-food crop) valorization for the past decade, specifically petroleum-independent fuel and plastics resin production. Its proprietary technology represents today's most economical and advanced manufacturing process for plastic raw materials, ethanol and bio-diesel, allowing production at cost savings of up to 40% when compared to current production methods.
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
Investor Contact:
Steven Sung
Steven@alcarchemicalsgroup.com
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