News: Mission NewEnergy debt free, focused on biofuel joint venture

Mission NewEnergy (ASX:MBT, OTCMKTS:MNELF) has successfully completed a transformation plan that started in 2012 and is now debt free, allowing it to focus on its joint venture with the world’s largest oil palm plantation company.

The company has achieved the final steps of the transformation consisting of:

- Completion of the sale of its 250,000 tpa biodiesel refinery for US$22.5 million;
- Settlement of all outstanding convertible note debt of approximately A$25 million;
- Retention of a 20% stake in a highly prospective joint venture with the world’s largest oil palm plantation company and one of the U.S.’s most promising disruptive fuels technology providers;
- Retention of approximately two years in general working capital to cover operational and legal expenses

Mission has added 40.28 cents per share of asset value on a fully diluted basis from this transaction including 10.44 cents per share of cash and enterprise value of Mission’s interest in the JV of 29.84 cents per share.   
   
The JV is expected to generate significant free cash flow for the company through the production and sale of low cost sustainable biofuels into mandated markets of the United States and Malaysia.

The company secured its 20% interest in the JV through re-investment of US$2.85 million in cash from the sale of the refinery proceeds into the biodiesel refinery in Kuantan, Malaysia, which will refurbished and retro-fitted with Benefuel’s ENSEL® technology.

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