26 Nov 2010 12:56
26 November 2010
LEGENDARY INVESTMENTS PLC ("Legendary" or the "Company")
OPTION TO INVEST IN BIO FUEL COMPANY AND PLACING OF SHARES
HIGHLIGHTS
·; Acquisition of exclusive option to invest in biofuel company.
·; Placing of shares to raise £60,000 at 0.15 pence per share, a 63% premium to the closing price on 25 November 2010 of 0.092 pence.
Legendary has negotiated an option to invest in Bosques Energicos EBE S.A. de C.V. ("BE EBE"), a bio fuel company. The option will enable Legendary to invest in up to 40% of BE EBE. BE EBE is developing a mother garden of Pongamia Pinnata trees as a precursor to developing a plantation of Pongamia Pinnata with agricultural/oil intercrops on at least 2,000 acres of land. Legendary will obtain Board representation on BE EBE's Board. The option to invest is exclusive to Legendary and exercisable in three tranches. Exercise is at Legendary's discretion and subject to progress at BE EBE against an agreed business plan.
BE EBE specialises in oil and food crop production in Mexico. BE EBE has a nursery consisting of 15,000 saplings of Pongamia Pinnata. Pongamia Pinnata is a hardy tree that produces pods which bear seed. The seeds can be crushed to produce bio diesel. The remaining oil cake is a rich fertilizer. Pongamia Pinnata utilises degraded, marginal or saline land and has low water need. The tree can utilise land not currently used for food production and can be used to combat desertification. Once the tree is fully productive, yields are greater than many other oil producing crops. Pongamia Pinnata is regarded as a premier crop for bio diesel production.
Bio diesel can be blended with fossil fuels and used in engines with no or few modifications. Emissions from bio diesel are lower than those of regular diesel fuel. The demand for bio diesel is growing fast: bio fuel consumption in the UK in 2002 was 2,333 tonnes; in 2007 it was 280,000 tonnes.
The bio fuel industry is still in its infancy and the expectation is that there will be dramatic growth in demand for its use in Europe and world-wide driven by the desire for more environmentally friendly fuels and regulation. European Renewable Energy Directives aim to limit greenhouse gas emissions and promote cleaner transport in Europe. Member States have a target to increase the share of energy from renewable sources in transport to at least 10 % by 2020. In 2007, UK bio fuel share in transport was only 1.34%.
Legendary has also raised £60,000 by placing 40,000,000 shares ordinary shares at 0.150 pence each, a 63% premium to the closing price on 25 November 2010 of 0.092 pence. The shares come attached with three warrants for every four shares subscribed to. The warrants have an exercise price of 0.15 pence per share and are exercisable until 24 November 2013. The funds raised will be used for working capital purposes.
Application will be made for the 40,000,000 new ordinary shares to be admitted to AIM, such admission is expected to occur on 3 December 2010.
For further information please contact:
Gavin Preston, Legendary Investments Plc 0208 205 4923
Gavin Burnell / Rod Venables, Northland Capital Partners Ltd 0207 492 4750