VANCOUVER, Oct. 15, 2018 /CNW/ - Pinnacle Renewable Holdings Inc. ("Pinnacle" or the "Company") (TSX: PL) today announced that it has closed the previously-announced acquisition of a 70 percent interest in an industrial wood pellet production facility located in Aliceville, Alabama (the "Aliceville Facility") from the Westervelt Company ("Westervelt"). Westervelt, a diversified land resources company, has retained a 30 percent interest in the Aliceville Facility.
Pinnacle funded the acquisition of its 70 percent stake in the Aliceville Facility through a draw on its credit facility and cash on hand. Pinnacle and Westervelt are currently undertaking a capital spending program to improve safety, product quality and plant efficiencies.
The Westervelt Company, a privately held company headquartered in Tuscaloosa, Ala., was founded in 1884 and is currently under the fourth generation of family leadership. Westervelt is an industry leader in land management, wood products manufacturing and environmental mitigation. The company is recognized for excellence in sustainable forest management, responsibly sourced forest products and services, natural resource stewardship and ecosystem conservation. With more than half a million acres of land under Westervelt management, Westervelt's diverse businesses all work together to ensure the sustainable stewardship of natural resources today, tomorrow and for many generations to come.
Pinnacle is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The Company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets. This fuel is used by large-scale thermal power generators as a greener alternative to produce reliable baseload renewable power. Pinnacle is a trusted supplier to its customers, who require reliable, high quality fuel supply to maximize utilization of their facilities. Pinnacle takes pride in its industry leading safety practices. The Company operates seven industrial wood pellet production facilities in western Canada and one in Alabama, owns a port terminal in Prince Rupert, B.C. and is currently constructing a new production facility in Smithers, B.C. Pinnacle has entered into long-term take-or-pay contracts with utilities in the U.K., Europe and Asia that represent 106% of its production capacity through 2021 and 98% of its production capacity through 2026.
This news release contains "forward-looking information" within the meaning of applicable securities laws in Canada. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Examples of such forward-looking information that are contained in this news release include, but are not limited to, statements regarding satisfaction of the conditions to the completion of the transaction with Westervelt in a timely manner and the anticipated benefits of the transaction. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. If any of the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those expressed in the forward-looking information. The Company has no obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of various factors, including uncertainties related to the realization of the anticipated benefits of the transaction with Westervelt, general economic and business conditions, product selling prices, changes in foreign-currency exchange rates and other factors described in "Risk Factors" which are described in the Company's Annual Information Form ("AIF") filed March 27, 2018 on SEDAR.
We caution that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect our results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See "Forward-looking Information" and "Risk Factors" in the Company's most recent AIF and its Management's Discussion & Analysis for the fiscal first quarter ended March 30, 2018 available on SEDAR (www.sedar.com) for a discussion of the uncertainties, risks and assumptions associated with these statements.
SOURCE Pinnacle Renewable Holdings Inc.