Alliance BioEnergy + Inc (OTCMKTS:ALLM) announced that through its subsidiary firm AMG Energy Group, LLC it has finalized its first licensing deal for the territory of South Africa, The deal is made with Naldogen (Pty) Ltd for an upfront fee of $25 million plus royalties. In addition, Alliance negotiated a 24.5% ownership in Naldogen in lieu for a 24.5% ownership for Naldogen in the new company’s owned CTS plant in the U.S.
The details
Alliance BioEnergy said that Naldogen intends to get a new name, Carbolosic Energy SA so as to better represent its new operations. The majority is held by Tes Projects (Pty) Ltd and Sonono Khoza. She is traditional wife of Jacob Zuma and daughter of Irvin Khoza. Zuma is President of South Africa while Khoza is one of the most famous South African Businessman. He is also the owner of Orlando, organizer of the World Cup and owner of Pirates Soccer Team.
The plans
Spearhead Capital also has a part in Naldogen. It is the same South African firm that played an important role in bringing the advanced CTS technology to South Africa. The company intends to construct CTS plants in a number of providences around South Africa. It will reduce energy costs, create thousands of jobs, and result in a “green” economy in a nation which is in dire need of economic stimulus.
The expert view
The deal was signed last week in the office of Spearhead Capital. Alliance BioEnergy CEO, Daniel de Liege said that the agreement is a vital step in the commercialization of the advanced CTS technology. It is just the start and there will be many more licenses to record around the world.
In last trading session, the stock price of Alliance BioEnergy surged more than 5% to close the trading session at $1. The gains came at a share volume of 304,498 compared to average share volume of 103,074.
