Next Fuel, Inc. (NXFI.PK - News) (NXFI.PK - News) ("the Company"), which develops and commercializes clean energy and environmental technologies and solutions, today announced that the Company has raised over $1.5 million in new equity capital. The capital was raised pursuant to a Subscription Agreement ("the Agreement") with Mr. Guangwei Guo, one of the Principals of Future Fuel, Inc., the Company's strategic partner in the development and commercialization of coal-to-gas ("CTG") technology in Inner Mongolia, China.
Next Fuel's patent-pending CTG technology converts low-grade coal (such as lignite) into clean-burning natural gas through the introduction of nutrients, via a low-pressure pumping system, to the wide range of microorganisms that naturally exist in coal deposits. The proprietary nutrients stimulate the microorganisms, which in turn consume certain carbon-containing compounds in the coal and "exhale" biogenic natural gas as a byproduct.
Under the terms of the Agreement, Mr. Guangwei Guo has purchased an additional 500,000 shares of NXFI common stock at a price of $3.05 per share, thereby generating net proceeds to the Company of $1,525,000. Following this most recent purchase, Mr. Guangwei Guo now owns 1,567,000 NXFI shares, or approximately 15% of the total number of NXFI shares outstanding.
It is anticipated that the capital provided by this transaction, along with ongoing operations in China, will provide the Company with operating capital for the next 12 to 18 months.
"This capital commitment, along with the continued support of Mr. Guangwei Guo and his affiliates, is greatly appreciated by the Company," stated Robert Craig, Chief Executive Officer of Next Fuel, Inc. "Our valued partnership with Future Fuel has set the stage for the commercialization of our CTG Technology in China and Mongolia."
About Next Fuel, Inc.
Next Fuel, Inc. develops and commercializes innovative technologies associated with renewable energy, including unconventional natural gas production from lower-grade coal, lignite, oil shale and other carbonaceous deposits. The Company is currently in the process of commercializing its Coal-to-Gas (CTG) technology with strategic international partners.
Although the Company's CTG technology is the only product with near-term revenue potential, the Company has also acquired, or is developing, advanced technologies associated with (1) environmental challenges associated with the treatment of energy-related waste water, (2) processes for carbon dioxide conversion and carbon loop closure, and (3) biological fuel cells. In collaboration with leading research institutes, Next Fuel, Inc. is focused upon the identification, development and/or acquisition of a portfolio of growth opportunities with compelling market potential that are consistent with clean energy and environmental stewardship.
This announcement contains forward-looking statements, including statements regarding the timing of future products, future contracts and future business to be conducted by the Company, all of which involve risks and uncertainties. Actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the ability of the Company and its collaborating partners to successfully develop and commercialize new technologies, the results of CTG field tests, receptiveness of the market to the Company's technologies and services, negotiations between the Company and its Chinese partners, the ability of the Company's Chinese partners to enter into and implement agreements with the owners of coal, lignite and other similar deposits and other factors discussed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements are based on information available to the Company as of the date of this news release, and the Company assumes no obligation to update such statements.