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Gold/Mining/Energy : ACMG - The Alcard Chemicals Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: xcentral1 who wrote (46)	2/23/2007 7:57:43 AM
From: xcentral1	Read Replies (1) \| Respond to of 52

Alcar Chemicals Group Inc. Announces Details of Acquisition Offer by the South East Asia Consortium, Named Siam Renewable Energy Group Ltd. MONTREAL, Feb 22, 2007 (MARKET WIRE via COMTEX) -- Alcar Chemicals Group Inc. (PINKSHEETS: ACMG) announces today the details contained in the Letter of Intent for the acquisition of a controlling interest by Siam Renewable Energy Group Ltd, signed in Thailand by the companies on February 16, 2007. According to the company, the LOI contains the finalized terms and conditions for the gradual acquisition of 55% of the company by Siam Renewable Energy Group Ltd. in exchange for the investment required to build the company's initial polyol plant in Canada to fulfill its existing $160 million contractual commitments and to implement a minimum of four full scale ethanol plants with a projected capacity of 1M gal per day each. The LOI includes milestones involving the investment, disbursements of funds, construction of the plants as well as provisions for the return to Dr Cavasin of his shares now held in escrow and the coinciding issuance of restricted shares to Siam Renewable Energy Group Ltd. The company stated that the agreement specifies an initial investment by Siam Renewable Energy Group Ltd of $7.2 million dollars to complete the company's Canadian plant and scale up engineering. The initial investment will be made in the form of a convertible loan, which can be converted at a price of $1.00 per share for a total of 7.2 million shares carrying a two year restriction. Under the convertible loan, no payment on principal and or interest will be required for a period of 24 months and the loan will automatically convert upon the completion of the Canadian plant and scale up engineering. In addition, Siam Renewable Energy Group Ltd. is granted 7.2 million purchase warrants on each of the four following years for which the exercise prices are shown in the table below. Siam Renewable Energy Group Ltd will receive Dr Cavasin's 68 million shares now placed in escrow as security to the convertible loan and said shares will be returned to him over the next four year period as milestones towards the implementation of the four ethanol plants are met. The total investment planned as per the letter of intent is $282 million, which includes the financing of the first of four ethanol plants to be constructed by Alcar. The issuance of a proportional amount of restricted shares to Siam Renewable Energy Group Ltd will reflect the final structure under which Siam Renewable Energy Group Ltd will own 55% of the company's outstanding shares, which will coincide with each milestone related to the release of Dr Cavasin's shares. The following table demonstrates how the overall value of $2.05 per share is calculated with the structure agreed upon under this agreement. Present 2008 2009 2010 2011 PPS paid (investment + warrants) $1 $1.5 $3.5 $5 $10 Total Net Projected Investment $282M Total amount of shares acquired 36M shares Total amount of shares to be issued 101.5M shares Final share count held by investor 137.5M shares Overall consideration paid per share $2.05 Supporting calculus 282/137.5=2.05 Table: Projected investment structure and value. The company anticipates the initial trench of investment funds will shortly be placed in escrow and that a definite agreement reflecting the terms and conditions outlined in the LOI will be signed within the next few weeks. About Siam Renewable Energy Group Ltd. The Siam Renewable Energy Group Ltd. is a privately owned corporation formed by an environmentally conscious consortium of technology funds, private investors and venture capitalists to implement renewable solutions across South East Asia by filling the constantly increasing demand for energy with environmentally sound technologies such as the one offered by Alcar. About The Alcar Group The Alcar Chemicals Group (PINKSHEETS: ACMG) represents a significant market opportunity due to a serious worldwide supply shortage of raw materials for polymers as well as an increased requirement for ethanol and biodiesel. ACMG has been concentrating on innovative methods for biomass (forestry waste, agricultural waste and non-food crop) valorization for the past decade, specifically petroleum-independent fuel and plastics resin production. Its proprietary technology represents today's most economical and advanced manufacturing process for plastic raw materials, ethanol and bio-diesel, allowing production at cost savings of up to 40% when compared to current production methods.