Quantum Energy and its subsidiary FTPM Resources have entered a non-binding memorandum of understanding (MOU) with a targeted company that designs, manufactures, operates and sells modular biorefineries.
The patented biorefineries are available in one million, two million and five million gallon per year capacities and produce alternative liquid biofuels from organic waste streams.
According to Quantum, the biorefineries are centrally manufactured so can be shipped globally.
Under the MOU, if certain conditions are met, FTPM will enter into a joint venture with the target company to develop and market a range of value-added food, feed and potentially medical grade products that will enable farm grown corn to realise a greater value than simply converting it into ethanol.
FTPM will also have the option to merge with the target company, while the target company will be offered the right to acquire shares of preferred stock of Quantum Energy and the right to appoint members to Quantum’s board of directors.
“We are excited about this potential project, which if we are able to consummate, is expected to add significant assets and revenue to Quantum while allowing Quantum to stay focused on its goal of building and/or acquiring refinery projects or its ‘economic equivalent’,” said Andrew Kacic, co-chairman and CEO of Quantum Energy.
“The target company’s plant offers an added benefit of manufacturing ‘greener’ biofuels from agricultural waste products and is currently equipped to manufacture ethanol."
Quantum must obtain sufficient capital to consummate the transactions proposed by the MOU.