BioNitrogen Corp., a clean energy company that builds non-hydrocarbon, environmentally friendly plants to convert residual agricultural and forestry biomass into urea fertilizer, announced today that it signed a term sheet for a $10 million investment supported by the Florida New Markets Capital Investment Program (NMTC).
The $10 million NMTC allocation is being provided through a subsidiary of Stonehenge Community Development, LLC. The investment will be in NMTC equity capital into a newly-formed subsidiary of BioNitrogen. The $10 million NMTC allocation will translate into a new cash investment of approximately $1.95 million for BioNitrogen.
The cash proceeds will be used to finance equipment and land improvements for the plant in Hardee County, FL. Under the conditions set forth in the term sheet, BioNitrogen is obligated to pay 3% of the allocation amount at closing plus 0.5% per annum to be paid over the seven-year term of the investment. The investment is expected to close prior to July 26, 2013.
“We are pleased about yet another important step in BioNitrogen’s progress,” said Bryan Kornegay, Jr., President and CFO of BioNitrogen. “The capital investment will allow us to advance the Hardee County project while we work in parallel on the EPC contract for the plant.”