Could be fun27 Oct 2011 16:07
Alexander David Investments PLC
("ADI" or the "Company")
First Pre-IPO Investment
Evergreen Oil Limited
The Board of Directors of ADI is pleased to announce that, in continuing ADI's
investment strategy, it has made an investment of £150,000 in Evergreen Oil
Limited ("Evergreen") in consideration of 82 new ordinary shares in Evergreen.
 These shares represent 6.38 per cent of Evergreen's issued share capital,
valuing Evergreen at £2.35 million.
Evergreen produces biodiesel to the EN Standard used at petrol filling stations.
 Evergreen's new production facility has a maximum capacity in excess of
300,000 litres of biodiesel per week.
The biodiesel is made solely from waste cooking oil and used vegetable oil feed
stock. Â Evergreen has completed an upgrade of its existing plant which
significantly increases its production capacity and has a developing pipeline of
supply and off-take arrangements. Â The ADI investment will be used for working
capital to support increased production and the business is expected to generate
positive cash flow within a few months.
ADI, through this investment, is entering into a market which has shown a 38 per
cent. rise in volume over the past four years. Â A new report for the Government
from Deloitte says that potential closures and lost refining capacity in the UK
may mean an extra 11 million barrels of diesel is needed per annum. Â The UK
Petroleum Industry Association has said: "The refining sector faces a growing
imbalance in petrol and diesel supply and demand."
Percy Lomax, Chairman commented "ADI has a mandate to invest in special
situations and Evergreen is expected to seek a public quote within one year. I
believe that this investment in an area with its strong growth prospects in the
green energy market should show positive returns for ADI's investors."
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