LAS VEGAS, NV--(Marketwired - Oct 17, 2014) - Methes Energies International Ltd. (
Production : 22 railcars were shipped to clients since September 1 st , 2014 for a quantity of approximately 500,000 gallons. In light of current market conditions, Methes does not plan to enter into a formal contract for the remainder of the year but instead will opportunistically produce biodiesel for the spot market. The Company believes that this approach may provide for more upside if market conditions improve in the short term. Factors that the Company believes could affect market conditions and its business are discussed below.
Renewable Volume Obligations ("RVOs") : The 2014 RVOs are 10 months overdue and have been with the U.S. Office of Management and Budget since August 2014. The timing of the official release remains unclear. The Environmental Protection Agency (EPA) announced late last year that it would keep the 2014 RVOs for biodiesel at the 2013 level of 1.28 billion gallons. There has been speculation over the last few months that the 2014 RVOs might in fact be increased. The Company believes that any increase in RVOs for 2014 would be positive for the biodiesel industry.
Blender's Tax Credit ("BTC"): Industry players are optimistic that the BTC will be reintroduced retroactively, but the timing and certainty is still unclear. As of today, the Company has accumulated approximately $1 million in BTC value and would receive that money if and when the BTC is reintroduced retroactively. If the BTC was to be reintroduced it would provide a positive impact on biodiesel prices. The re-introduction of the BTC is supported by several policy makers in the U.S.
Equipment Sales: The Company is still engaged with several potential clients for its new pre-treatment catalyst technology and its Denami processors. The sale cycle for its Denami processors is lengthy and typical of any similar equipment that requires in-depth evaluation of the chemical and engineering processes among other things. The Company is confident that it will soon be in a position to convert some of the potential clients it is working with into catalyst and equipment sales.
Positive Balance Sheet Developments: Holders of loans totaling over $2.2 million have agreed to extend their maturities and repayment, allowing them to be reclassified into "Non-Current Liabilities" on the Company's Balance Sheet. These loans are now extended to April 2016 and allow the Company to continue to maintain maximum flexibility in order to respond to market opportunities.
About Methes Energies International Ltd. Methes Energies International Ltd. is a renewable energy company that offers a variety of products and services to biodiesel fuel producers. Methes also offers biodiesel processors that are unique, truly compact, fully automated state-of-the-art and continuous flow that can run on a wide variety of feedstocks. Methes markets and sells biodiesel fuel produced at its showcase production facility in Mississauga, Ontario, Canada, and at its 13 MGY facility in Sombra, Ontario, to customers in the U.S. and Canada, as well as providing multiple biodiesel fuel solutions to its clientele. Among its services are selling commodities to its network of biodiesel producers, selling their biodiesel production and providing clients with proprietary software to operate and control their processors. Methes also remotely monitors the quality and characteristics of its clients' production, upgrades and repairs their processors and advises clients on adjusting their processes to use varying feedstock to improve the quality of their biodiesel. For more information, please visit www.methes.com .
Forward-looking Statements
This press release contains forward-looking statements regarding future events and financial performance. In some cases, you can identify these statements by words such as "may," "might," "will," "should," "except," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of these terms and other comparable terminology. These statements involve a number of risks and uncertainties and are based on numerous assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. There are or may be important factors that could cause our actual results to materially differ from our historical results or from any future results expressed or implied by such forward looking statements. These factors include, but are not limited to, those discussed under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended November 30, 2013, filed on February 25, 2014, as amended, which is available at the U.S. Securities and Exchange Commission website at www.sec.gov . The forward-looking statements in this press release are based upon management's reasonable belief as of the date hereof. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Contacts: Methes Energies International Ltd. Michel G. Laporte Chairman and CEO 702-932-9964
