Sulvaris Inc has received approval from regulators to begin construction of a new Vitasul production facility. The facility, which will be built on the site of Keyera Corp’s Strachan gas plant near Rocky Mountain House in central Alberta, will convert elemental sulphur into Vitasul, a premium plant nutrient sulphur fertilizer developed for sale in global markets by the Calgary-based Sulvaris. The company confirmed that financing of the project was provided in Aug. 2013 by Canadian venture capital firm Avrio Capital, ATB Financial, and other investors. While the deal’s financial terms were not released, Thomson Reuters (publisher of peHUB Canada) has reported that a portion of the value totals $42 million.
Sulvaris Begins Construction of Vitasul Production Facility Near Strachan Alberta
CALGARY, AB (February 19, 2014) – Sulvaris Inc. today announced that it has received final regulatory approval from Alberta Environment and Sustainable Resource Development (“AESRD”) and commenced construction of a new Vitasul production facility in central Alberta.
The new facility, which will be built on the site of Keyera Corp’s (TSX:KEY) (TSX:KEY.DB.A) (“Keyera”) existing Strachan Gas Plant near Rocky Mountain House, Alberta, will convert elemental sulphur into Vitasul, a premium plant nutrient sulphur fertilizer. The facility will be jointly owned between Keyera and Sulvaris, with Keyera as operator. The product will be marketed and distributed by Sulvaris. Upon completion, the new facility will have the capacity to produce approximately 217,000 metric tonnes of Vitasul per year, which will be sold into the Canadian, United States, and offshore markets. It is expected that construction and commissioning of the facility will be completed in the fourth quarter of 2014 with production and sales to start immediately upon completion.
Sulvaris’ financing for the project closed in August, 2013 whereby ATB Financial provided a senior construction term loan facility and Avrio Capital provided a mezzanine loan facility. The remainder of the proceeds were raised via private placement of shares of the company. “We have assembled an excellent group of financial partners and the company is excited to have moved into the construction phase of our first Vitasul facility,” said Sulvaris President, Bill Boycott.
About Sulvaris and Vitasul
Researched and developed by Sulvaris, Vitasul is a proprietary, high-analysis sulphur fertilizer that provides quick response and consistent feeding of sulphate to crops in the season of application. In four years of global field trials on a variety of crops in direct comparison to existing sulphur fertilizers, Vitasul has shown tremendous performance. The product has been extensively tested in North America, China, and India on a variety of crops, including, among others, canola, corn and wheat. It has consistently out-performed other forms of sulphur fertilizer currently available on the global market. Sulvaris is an innovative Calgary-based organization that converts fundamental inputs into essential value added products. The Sulvaris website at www.sulvaris.com provides more details on the Vitasul technology and other innovative conversion technologies currently in development at Sulvaris.
Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A) operates one of the largest natural gas midstream businesses in Canada. Its business consists of natural gas gathering and processing as well as the processing, transportation, storage and marketing of NGLs, the production of iso-octane and crude oil midstream activities.
About ATB Financial
ATB Financial is the largest Alberta-based financial institution, with assets of more than $33 billion. ATB provides personal, business, agriculture, corporate and investor financial services to more than 662,000 Albertans and Alberta-based businesses in 242 communities. ATB provides service through 171 branches and 130 agencies, mobile, telephone, and online banking, a Customer Care Centre, and automated banking machines. ATB was established in 1938 and has been a provincial Crown corporation since 1997. ATB has won numerous national workplace awards, including recognition as one of Canada’s best 50 employers. See more at: http://www.atb.com
About Avrio Capital
Avrio Capital was established in 2006 to identify and invest in innovative food and agriculture companies that provide solutions to global challenges in the areas of health, wellness and sustainability. Avrio is a hands-on investor who works alongside its portfolio companies to provide the support and resources needed to transform emerging companies into successful globally competitive enterprises. Since 2002 the team has invested in more than 50 companies with operations ranging from crop inputs and food production through to value added processes such as fermentation and synthetic biology. The team’s breadth and depth of experience in operational, transactional and sectorial issues allows them to maximize each portfolio company’s opportunity for success. www.avriocapital.com
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