29th Dec 2015 09:34
LONDON (Alliance News) - China New Energy Ltd on Tuesday said it has struck its first deal in North America after signing an agreement with BioNeutra North America Inc and said it has raised GBP200,000 through a subscription.
China New Energy, which provides engineering and technology services to the bioenergy sector, will design, manufacture and install a 5,000 tonne per isomaltooligosaccharide production line extension to the BioNeutra's existing facilities in Edmonton, Canada.
BioNeutra makes Vitafiber, a dietary-fibre and low-calorie sweetener product for the food industry.
The deal is worth around CAD3.0 million in total, half of which has already been paid and the majority of which will be paid by the completion of the project, expected within around six months.
The group also said it has issued 13.3 million shares at 1.5 pence per share to an unnamed private investor. The funds will be used to provide the company with additional working capital to back its projects in Africa and to develop opportunities in Europe.
China New Energy shares were up 5.0% to 2.10 pence Tuesday, with some gains pulled back after the 23% rise seen following the announcement of the BioNeutra deal earlier in the morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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