VANCOUVER, BRITISH COLUMBIA, CANADA — Lignol Energy Corp. (LEC) announced on March 18 that it has invested approximately A$2.5 million to acquire approximately 356 million shares of Australian Renewable Fuels Limited as a part of ARW's underwritten rights issue of approximately A$8 million.
This investment was funded, in part, from LEC's recently announced line of credit with one of the company's major shareholders, Difference Capital Funding Inc. This investment together with the approximately 179 million shares acquired by LEC as a part of ARW's share placement, announced on Feb. 12, and shares previously acquired by LEC has resulted in a total ownership of approximately 898 million shares, representing 21.4% of ARW.
“We are pleased to have participated in the private placement, the shareholder entitlement offer, and to have supported ARW through the related underwriting to become one of ARW's largest shareholders,” said Ross MacLachlan, chairman and chief executive officer. "As a result of our recent investments, LEC is now well positioned in the Australian biodiesel industry. These investments are further evidence of our strategy of acquiring interests in companies which have synergy with our company and have the potential to generate near term cash flow."
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