“Cornwall recognizes the importance of building a strong raw material inventory at Scotia Atlantic, particularly after spring break up when fiber is plentiful and cost efficient,” said Christopher Robertson CEO, Viridis Energy. “Scotia Atlantic has been purchasing fiber as needed from cash flow, which limited its ability to inventory lower priced material as seasonal supply and demand influences impacted prices. This funding will allow us to accumulate up to a 90-day supply of low cost fiber inventory when it becomes available, which should decrease Scotia Atlantic’s average cost of goods sold and improve its gross margin.”
In addition to the fiber inventory loan, Cornwall also holds a $3.1 million mortgage (including accrued interest) at 9% with Scotia Atlantic and a general security agreement and first charge on all property, plant and equipment. In the 4Q 2014, Cornwall also provided the Company a $2.5 million line of credit for working capital purposes.
Viridis Energy is a publicly traded, “Cleantech” manufacturer and distributor of renewable energy providing wood pellet biomass to global residential and industrial markets. Located in Vancouver, Viridis Energy Inc. operates Okanagan Pellet Company Ltd. (BC), Scotia Atlantic Biomass Company Limited (Nova Scotia) and Viridis Merchants Inc. (New Jersey), with over 300,000 tonnes of trading and manufactured capacity on both coasts of North America.
