GUELPH, Ontario, Jan. 31, 2013 /PRNewswire/ -- W2 Energy, Inc. (OTC: WTWO) is pleased to report it has signed a binding memorandum agreement to purchase 51% of Ecobound Fuel Production Systems of Port Klang Malaysia.
The company has signed and Memorandum Of Understanding (MOU) to buy 51% of Ecobound Fuel Production Systems from Ecobound International.
This strategic acquisition puts W2 Energy in the business of fuel distribution on a global scale and will enable the company to market and produce its bunker oil replacement as well as its other clean fuel products.
Ecobound Fuel Production Systems holds a manufacturing license to produce petroleum products under PDA 2 from the Malaysian Ministry of Trade and Industry. This license is classified as a petroleum refinery license. The company also holds a trading and storage license for the trading and storage of petroleum products.Ecobound Fuel Production Systems also has a contract for storage of minimum 4,000 tons to a maximum 15,000 tons of petroleum products in Port Klang, Malaysia with a direct pipeline access to the port and shipping. The company also has in place a banking facility from RHB bank in the amount of RM 5 million (US 1.6 million) for the purpose of trade and working capital financing. Mr. Michael McLaren, CEO of W2 Energy, states, "This strategic acquisition put in place by Dr. Wan Hasni, our new CFO, brings us a tremendous opportunity to have a turnkey platform to produce and distribute our Coal/Water/Biodiesel bunker fuel replacement product as well as our other clean fuel products throughout south east Asia." The acquisition is valued at $2,500,000 US and W2 energy will receive a total of 510,000 shares of Ecobound Fuel systems for 25,550,000 W2 Energy shares at a deemed value of US 0.10 cents per share. The agreement also states the parties have agreed to complete and further due diligence, consents and approvals and execute the SPA (Stock Purchase Agreement) within 30 days of signing the MOU.