Vancouver, BC / TheNewswire / April 5, 2016 - Viridis Energy Inc. ("Viridis" or the "Company ") ( VRD.V ) (TSXV:VRD) today announced that due to recent structural concerns at its Okanagan Pellet Company ("OPC") plant and a combination of factors, including the increased capital investment necessary to restart wood pellet production at that location, it has decided to cease operations at its West Kelowna, British Columbia plant.
Despite substantial upgrades over the past ten months, additional requirements from local authorities regarding dust management together with the recently discovered structural challenges of the building, operating the plant safely would require significant additional capital outlays. The Company has determined that such expenditures are not economically feasible in the current market environment.
The Company will work with OPC's creditors to determine the best course of action, including, but not limited to, the potential sale or joint venture of OPC, a sale or liquidation of those related assets, or the relocation of that facility in its entirety.
Chief Financial Officer
Viridis Energy Inc
About Viridis Energy
Viridis Energy (VRD.V) (TSXV:VRD) is a publicly traded, "Cleantech" manufacturer and distributor of renewable energy providing wood pellet biomass to global residential and industrial markets. For further information about Viridis Energy Inc., visit the company website at www.viridisenergy.ca
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future operations. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance, or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates, and assumptions, which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a continued downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties associated with the demand for biofuels, (3) the risk that the Company does not execute its business plan, (4) inability to finance operations and growth (5) inability to finance the start-up operations in Nova Scotia in a timely manner (6) inability to retain key management and employees, (7) an increase in the number of competitors with larger resources, and (8) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and the Company intends to update such forward-looking information in the Company's MD&A in the event that actual results differ materially from such forward-looking statements contained herein. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian securities regulators. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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