Earth Gen-BioFuel, (EarthGen or the company) has announced that it has agreed to open offices with Gionesis Pte. Ltd. of Singapore to manage its Southeast Asia operations. Gionesis has agreed to be the lead funder of four new joint venture castor bean farms.
George Shen, Chairman, commented, "In anticipation of EarthGen's expanded castor bean farming and agarwood harvesting operation in Southeast Asia, we have arranged to work closely with the Singapore-based consulting group Gionesis. As we pursue our goal of rapid growth, this relationship will give Earth Gen access to local business advisors, experienced agricultural managers and local access to a major financial centre."
Gionesis will be working with EarthGen's new operating subsidiary Earth-Eco Agriculture Inc. to manage non-castor bean farming operations. This new subsidiary is allowing EarthGen management to focus on new business opportunities without taking resources away from EarthGen's core castor bean operations. Gionesis has also agreed to complete a best efforts financing by selling farming interest to build four new 2500 acre castor bean farms in Southeast Asia in joint venture with EarthGen. EarthGen is providing all agricultural services and product sales. Each of the farms when fully planted is estimated to produce over US$3 million/y in castor bean sales, which could add up to US$12 million in new revenue. Based on these estimates, Earth Gen's estimated distributions from these farm operations should be US$5 million/y. The four farms when funded and completed will have the ability to provide a revenue stream to EarthGen for the life of the farm, which is under contract for a 12 year term with an option for 12 additional years.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/28072016/earth-gen-biofuel-inc-expands-singapore-operations-3804/