Four Rivers to acquire Kreido Biofuels

(18/02/2009)

Kreido Biofuels, Inc. has jointly announced with Four Rivers BioEnergy Inc. that Kreido has agreed to sell substantially all of its assets to Four Rivers.

Kreido is selling the specified assets for $2.8 million in cash, the assumption by Four Rivers of $260,000 of Kreido purchase orders and contracts, 1,200,000 Four Rivers shares of common stock and warrants to purchase up to 200,000 Four Rivers shares of common stock, exercisable at $8 per share for a period of five years. The shares issued in the transaction and underlying the warrants will be unregistered, but carry piggy back registration rights. The shares issued at closing will be subject to a 360 day lock up.

Kreido intends to hold the shares until they can be distributed to its shareholders or otherwise transferred or sold. The sales proceeds will be used by Kreido to satisfy its creditors. Kreido will pursue the sale of its remaining assets and may identify another business activity beneficial to Kreido shareholders to pursue in the future. Certain of the Kreido employees, with deep technology expertise, will be available to assist Four Rivers after consummation of the transaction pursuant to separate agreements.

The sale of the assets is subject to Kreido shareholder approval and satisfaction of closing conditions by both parties. Kreido intends promptly to solicit proxies for approval of the agreement and sale, in order to close the transaction by the end of March 2009, if not sooner.

Ben Binninger, Kreido Chief Executive Officer, stated, “I’m pleased to see Kreido’s technology in the hands of Four Rivers to pursue our goal of commercializing this transformational technology. We continue to believe that the patented STT® technology has the ability to deliver superior economics for biodiesel and other materials processing applications.”

Gary Hudson, CEO of Four Rivers, stated, “This acquisition is a significant component of our business development and expansion strategy. We look forward to realizing the potential of the STT® proprietary biodiesel technology to deliver meaningful operating efficiencies. Four Rivers intends to pursue commercialization of the STT® technology in the construction of a biodiesel plant on its existing site in Kentucky and in other applications. Four Rivers believes that the STT® technology provides the critical flexibility to be able to use a variety of vegetable feedstocks and can be placed in numerous facilities worldwide.”

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