VANCOUVER, July 3 - Lignol Energy Corporation (TSX-V: LEC) ("Lignol"), today announced that it has agreed with Haywood Securities Inc. ("Haywood") that Haywood will act as lead agent, pursuant to which Haywood has agreed to place, on a best-efforts basis, up to 10 million common shares at a price of $1.25 per share for gross proceeds of up to $12.5 million (the "offering"). Haywood has been granted an over allotment option to increase the size of the offering by an additional 15 per cent (1,500,000 shares for $1,875,000). The net proceeds of the offering will be used by Lignol for developing an industrial scale commercial demonstration facility and general corporate purposes. The offering is expected to close on or before July 23, 2007.
Haywood will receive a commission upon closing of six per cent of gross proceeds in either cash or Lignol common shares at a deemed $1.25 per share, or any combination thereof. Haywood will also be paid a work fee of 180,000 Lignol common shares to be paid at the closing of the offering and Haywood will be granted options to purchase up to seven per cent of the number
of shares issued in the offering at a price of $1.25 per share for a period of 12 months following the closing of the offering.
The offering is subject to certain conditions, including, but not limited to, due diligence and receipt of TSX Venture Exchange and other approvals. Pursuant to applicable securities laws, the securities offered will be subject to a four month hold period. The securities offered hereby have not and will not be registered under the United States Securities Act of 1933 (the "1933 Act") and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the 1933 Act) unless the securities have been registered under the 1933 Act, or are otherwise exempt from such registration.
About Lignol
Lignol is a Canadian company undertaking the development of biorefineries for the production of fuel-grade ethanol and other biochemical co-products from cellulosic biomass feedstocks. Lignol's modified solvent based pre-treatment technology, originally developed by a former affiliate of General Electric (GE), and then further developed and commercialized for wood-pulp applications by a subsidiary of Repap Enterprises Inc., facilitates the rapid, high-yield conversion of cellulose to ethanol and the production of value-added biochemical co-products, including High Purity Lignin. Lignol is executing on its development plan with several major Canadian companies in a strategic partnership to further develop and integrate the core technologies
on a commercial scale. Lignol also intends to invest in, or otherwise obtain, equity interests in energy related projects which have synergies with its biorefining technology. For more information about Lignol, please visit our website at www.lignol.ca.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Caution concerning forward-looking statements
Certain statements contained in this document may constitute "forward-looking statements". When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "investigate", "looking at" as they relate to Lignol or its management, are intended to identify forward-looking statements or information. Such statements or information reflect Lignol's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors could cause Lignol's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or information, including among other things, those risk factors which are discussed elsewhere in documents that Lignol files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements or information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. The Company expressly disclaims any intention or obligation to update or revise any forward looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.
For further information:
Lignol Energy Corporation
Ross MacLachlan
Chief Executive Officer
Tel: 604-222-9800 ext. 107
Email: info@lignol.ca The Equicom Group
Bruce Wigle
Investor Relations
Tel: 416-815-0700 ext. 228
Email: bwigle@equicomgroup.com