Allegro Biodiesel Corp. (OTCBB:ABDS), announced that Governor Kathleen Babineaux Blanco, of the state of Louisiana, has allocated $150 million in Gulf Opportunity Zone Bonds (“GO Zone Bonds”) to be issued by the West Calcasieu Port for the benefit of the Southern Intracoastal Biofuels, L.L.C., a 50 percent owned subsidiary of Allegro.
Allegro is currently pursuing next steps to support the bond issuance, including finding buyers for the bonds. If the bonds are issued, the proceeds would be expected to be used by the project team to engineer, procure and construct a multi-phase biodiesel-manufacturing facility with supporting infrastructure, including a dock and storage tank facility to hold inventories of raw materials and finished fuel products at the Port of West Calcasieu or within the Port’s taxing district on the Gulf Intracoastal WaterWay. This facility would be strategically located in the Gulf Coast petroleum-refining corridor making blended biodiesel more available in the Gulf Coast region and Gulf Intracoastal WaterWay. The bond allocation is in effect until January 16, 2008, at which time bonds that have not been delivered will be returned to the Gulf Opportunity Zone Bond Pool. There is no assurance that Allegro will find buyers for the bonds or other ways to utilize the bond allocation before the January 16, 2008 deadline.
GO Zone Bonds are a new category of tax-exempt private activity bonds referred to in the GO Zone Act as "Gulf Opportunity Zone Bonds." The bonds are an integral part of the federal assistance made available in the GO Zone to support the rebuilding and revitalization of the local and regional economies impacted by hurricanes Katrina and Rita.
GO Zone Bonds present a unique opportunity for private business owners and corporations to borrow capital at very favorable tax-exempt rates to acquire, construct, reconstruct or renovate non-residential real property, qualified residential rental projects, and public utility property in the GO Zone. While the bonds must still be sold to private parties, businesses will essentially be able to use the state's tax-exempt borrowing authority to borrow money at a low interest rate, creating an extraordinarily important financial option for rebuilding.
“The Governor’s approval of this allocation, along with the 2 percent renewable fuel standard, is an example of Louisiana’s support of biodiesel. This is an opportunity to bring in commerce that benefits not only the Port community but also local farmers,” stated Darrell Dubroc, Chief Operating Officer of Allegro. “This project would boost the Southwest Louisiana economy and result in increased job opportunities for the community.”
About Allegro
Allegro Biodiesel Corporation is a producer and distributor of biodiesel fuel. Allegro began production and sales in April 2006, becoming the first operational producer of biodiesel in the state of Louisiana. Allegro’s biodiesel production facility is located in Pollock, Louisiana and uses renewable agricultural-based feedstock to produce biodiesel. For more information or to be added to the Company’s email list please click here or visit the Company’s website at www.allegrobiodiesel.com.
Forward Looking Statements
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. To the extent that this press release discusses expectations about market conditions, market acceptance, future sales, future financial performance, future disclosures, or otherwise statements about the future: such statements are forward-looking and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risks associated with the ability of the parties to close the Talen’s acquisition, our limited operating history, our ability to manage future acquisitions and expand operations and to implement the use of alternative feedstocks, our ability to obtain contracts with suppliers of raw materials (for production of biodiesel fuel) and with distributors of our biodiesel fuel product, the risks inherent in the mutual performance of such supplier and distributor contracts, our performance and efficiency in producing biodiesel, our ability to raise necessary financing to execute Allegro’s business plans (including specifically finding ways to utilize the GO Zone bonds discussed in this release), and other risk factors discussed in the Risk Factors, Business Description and Management’s Discussion and Analysis sections of Allegro’s Registration Statement on Form SB-2, which was declared effective by the SEC on June 13, 2007, its Annual Report on Form 10-KSB for the year ended December 31, 2006, and subsequent Quarterly Reports on Form 10-QSB and current reports on Form 8-K. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements of Allegro and can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “forecast,” “project,” and variations of such words with similar meanings. Allegro does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.
Allegro Biodiesel Corp.
Maili Bergman, Director Investor Relations
310-670-2093 x227
Fax: 310-670-4107
info@allegrobio.com
or
Local Media:
West Calcasieu Port
Lynn Hohensee, Port Director
337-794-4809
lhohensee@netcommander.com