Lignol secures fully diluted majority interest in Territory Biofuels
The investment makes LEC the majority shareholder of TBF, on a fully-diluted basis with a 51.9% shareholding.
The interest free, non-recourse loan to TBF for the principal amount of A$500,000 ($515,695) is repayable on 15 January 2014.
Subject to certain undertakings by LEC, TBF will issue common stock options to LEC, which are exercisable up until 15 June 2015.
In addition to the company's 17 April 2013 announcement, the convertible notes with a principle value of A$1.18m ($1.27m) held by the company and issued by TBF were converted into common shares, making LEC the largest shareholder in TBF with a 40% fully-diluted equity stake at that period.
LEC is likely to have a projected 51.9% stake on a fully-diluted basis following the issuance of the additional TBF Options.