EVGI Reports EPS Sources 100,000 Tons of New Rapeseed Supply; Sees
$70 Million in 12-Month Incremental Revenue
GROVELAND, Fla., Oct. 29, 2012 /PRNewswire/ -- Eco Ventures Group,
Inc. (OTCBB: EVGI), an emerging producer of diversified sustainable
alternative energy and resources, today announced Germany-based Energiepark Suptitz GmbH ("EPS")
has established new rapeseed supply agreements with several farmers
in Eastern Europe. The Company on
August 7 reported it had signed a
Definitive Agreement to acquire EPS.
The new, or expanded, supply agreements enable EPS to source
more than 100,000 metric tons annually in additional rapeseed
production from farmers in Germany
and Eastern Europe. EPS processes
the rapeseed in its mills, converting it into high quality rapeseed
oil which it typically sells as biofuel feedstock, while selling
the byproduct rapeseed cake to farmers who use it as nutritious
feed for livestock.
The new rapeseed supply will generate about $70 million in incremental revenue -- with a
gross margin of approximately 15 percent -- when converted to
rapeseed oil and sold, depending on market conditions. EPS
currently is taking delivery of the first 10,000 metric tons of new
rapeseed. When processed, one metric ton of rapeseed yields
approximately four tenths of one metric ton of rapeseed oil.
This new rapeseed supply is entirely separate, and the revenue
incremental, to the EPS 15-month $121
million rapeseed oil sales contract with GGT Trading,
announced on October 10. Under the
terms of that contract, EPS is mixing its premium high grade
rapeseed oil with GGT's low grade oil to produce a more valuable
oil well suited to biofuel feedstock. Gross margins on the GGT
contract are in a similar range to that of EPS' conversion of raw
rapeseed to rapeseed oil.
"We have established relationships with many of these growers
over the years, as they meet our high standards for quality control
and reliability," said Matthias
Tanzer, President of EPS. "Some of whom have recently
supplied industry leaders including Bunge and ADM. We will continue
to build our rapeseed supply pipeline while pursuing new rapeseed
oil off-take sales contracts."
Randall Lanham, EVGI Chief
Executive Officer, said, "EPS' dramatically increased rapeseed
supply chain is impressive as it continues to compete -- and
win -- against the largest companies in Europe while successfully executing on its
business plan."
"I, and EVGI staff, were in Suptitz, Germany last week working closely with EPS
bankers, suppliers, management and legal, evaluating financing term
sheets and preparing for the transaction closing. In addition, we
are meeting with European biofuel purchasing companies to line up
future biofuel off-take purchase agreements for when we build and
complete the EPS renewable bio-diesel fuel production facility in
Suptitz slated for Q1 2014.
"That plant will constitute one of the few manufacturers of
renewable diesel, or 'designer diesel' as it is commonly referred
to in Europe," Mr. Lanham said.
"This is the next evolution of bio-diesel, and EPS will be well
positioned at its forefront in Germany, an industrial powerhouse known for
its strong bio-diesel appetite."
About Eco Ventures Group
Eco Ventures Group, Inc. ("EVGI") is both acquiring and
developing a portfolio of ecologically friendly businesses to
provide renewable energy and related feedstock
(www.ecoventuresgroup.com).
EPS is a diversified alternative energy feedstock,
transportation, heat & solar power production company with
approximately 50 employees -- whose primary business is the
production, processing and brokering of alternative energy
feedstocks including rapeseed, palm oil and wood. The
acquisition combines two renewable energy companies whose
technology, bio fuel and grid-tied energy products will create a
diversified international platform with important operating
synergies.
Safe Harbor Statement
Safe Harbor statement under the Private Securities Litigation
Reform Act of 1995: EVGI encourages those interested in our Company
to rely only on information included in our filings with the
United States Securities and Exchange Commission which can be found
at www.sec.gov. Statements released by Eco Ventures Group, Inc.
that are not purely historical are forward-looking within the
meaning of the "Safe Harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including statements regarding the
company's expectations, hopes, intentions, and strategies for the
future to include all those of its intended acquisition of
Energiepark Suptitz, GmbH. Investors are cautioned that
forward-looking statements involve risk and uncertainties that may
affect the company's business prospects and performance. The
company's actual results could differ materially from those in such
forward-looking statements. Risk factors include but are not
limited to general economic, competitive, governmental, and
technological factors as discussed in the company's filings with
the SEC on Forms 10-K, 10-Q, and 8-K. The company does not
undertake any responsibility to update the forward-looking
statements contained in this release.
Contact
Eco Ventures Group, Inc.
7432 E. Highway 50, Suite 101
Groveland FL 34736
Phone: (352) 557-4830
Email: info@ecoventuresgroup.com
Investor Contact:
Mirador Consulting
Frank Benedetto
Tel: (561) 989-3600
SOURCE Eco Ventures Group, Inc.