Diversified Ethanol, a Division of James Monroe Capital, Begins Discussions on Ethanol Plant Mergers Business Editors
CHICAGO--(BUSINESS WIRE)--July 19, 2006-- Diversified Ethanol, a division of James Monroe Capital Corporation (Pink Sheets:JMCP), today announced that it has entered into discussions with multiple ethanol and bio diesel plant owners for potential mergers or acquisitions.
The company intends to acquire or merge alternative fuel producers under the Diversified Ethanol umbrella thus becoming a major producer and supplier of alternative fuels.
Starting last May, more and more refiners have been adding ethanol into regular gas, and dropping the popular additive MTBE, which is used to make gasoline burn cleaner. The additive may cause cancer, and Congress has declined to offer refiners protection from the legal liabilities that may stem from the use of MTBE, 45 states have enacted policies to stimulate ethanol production and consumption, and it has been mandated in some States already. The Energy Policy Act of 2005 requires gasoline producers to nearly double the use of renewable fuels, mostly ethanol, by 2012.
Gas consumption has been increasing every year, while we haven't built a new refinery since the 1970's. Ethanol will fill part of this void, as refineries blend it in. Auto makers Ford and General Motors are ramping up promotion of flex vehicles that run on 85% ethanol, known as E85. This demand has been noticed by prominent visionaries of the future such as Bill Gates, who purchased $84 million dollars worth of ethanol related investments.
"Diversified Ethanol will allow these plants to operate independently but with the backing of the parent public company, this will allow better pricing on supplies and cut production costs and related expenses as we grow," said CEO Taylor Moffitt.
Moffitt added, "I drove to work today in a car fueled by E85 made from corn. The cost of the fuel is less and the emissions are lower, it gave me a sense of being environmentally friendly while being non-dependent on foreign oil."
This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company's limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
KEYWORD: NORTH AMERICA ILLINOIS UNITED STATES INDUSTRY KEYWORD: ENERGY ALTERNATIVE ENERGY OIL/GAS PROFESSIONAL SERVICES BANKING FINANCE MERGER/ACQUISITION SOURCE: James Monroe Capital Corporation
CONTACT INFORMATION: James Monroe Capital Corporation, Northbrook Chris McGovern, 847-418-3848
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