Date: July 29, 2010
Source: Plasco Energy Group Inc.
Plasco Energy Group said it raised $110 million in new capital to drive further development of its waste-to-energy conversion technology. Company CEO Rod Bryden, said Ares Management LLC of Los Angeles is leading the new funding round with $100 million. Plasco currently owns and operates a 100 ton-per-day capacity plant in Ottawa. A joint venture between the company and Hera Holdings owns and operates a five ton-per-day research and development facility in Castellgali, Spain. The company also has a contract in Red Deer, Alberta for a 300 tonne-per-day Plasco facility to be completed in 2012.
Plasco Secures $110 million Equity Placement Led by Ares Management
OTTAWA – July 28, 2010 – Plasco Energy Group Inc. of Ottawa, a leading company in the conversion of waste into renewable energy, today announced a $110 million equity placement led by a $100 million commitment by Ares Management LLC of Los Angeles, CA. This capital raise enables Plasco to launch commercial delivery of its proven technology, the Plasco Conversion System.
This equity placement will strengthen Plasco's financial base, adding to $135 million in equity investments since 2005 from a group of investors including Black River Asset Management of Minneapolis, Minnesota, RAB Capital of London, United Kingdom, Hera Holdings of Barcelona, Spain, Killick Capital of St. John's, NL, and Rose Corporation of Toronto, ON.
In addition to the private equity capital invested in Plasco, early support was provided by a $9.6 million grant from Sustainable Development Technology Canada, a $4 million loan from Ontario's Ministry of Research and Innovation, and a $10 million loan from Export Development Canada. The current placement brings the total amount of capital invested in Plasco to approximately $270 million.
"The capital raised to date is a remarkable expression of confidence in the depth of the market, the competitive strength of the technology, and the abilities of Plasco management and staff," said Chairman and Chief Executive Officer Rod Bryden. "Plasco will now move confidently and prudently to bring the Plasco Conversion System to communities that are seeking excellence in environmental performance and an increased share of their energy produced from the waste of urban society that would otherwise not be utilized."
Plasco is currently developing waste-conversion facilities in North America, Europe and China. The company presently owns and operates a 100 ton-per-day capacity plant in Ottawa, Canada, and a joint venture between the company and Hera Holdings owns and operates a five ton-per-day research and development facility in Castellgali, Spain. The Central Waste Management Commission in Red Deer, Canada has signed a contract for a 300 tonne-per-day Plasco facility to be completed in 2012.
Jeff Serota, Senior Partner at Ares Management, stated, "The conversion of municipal solid waste into electricity, clean water and clean aggregate allows the company to address two very important markets: managing waste as well as producing clean energy. With this major investment in the company, we believe Plasco is well positioned to benefit from a rapidly growing worldwide market for these two basic needs."
About Plasco Energy Group Inc.
Plasco Energy Group Inc. builds, owns, and operates proprietary, world-leading technology that converts municipal solid waste into green power and other valuable products. Plasco has a long history of working with plasma technologies and represents the best green alternative to municipal waste management by providing a socially acceptable and environmentally superior solution. For more information, visit www.plascoenergygroup.com.
About Ares Management LLC
Ares Management is a global alternative asset manager and SEC registered investment adviser with approximately $37 billion of committed capital under management and approximately 330 employees as of June 30, 2010. Ares has the ability to invest in all levels of a company's capital structure – from senior debt to common equity. The firm's investment activities are managed by dedicated teams in its Private Equity, Private Debt and Capital Markets investment platforms. Ares Management was built upon the fundamental principle that each platform benefits from being part of the greater whole. This multi-asset class synergy provides its professionals with insights into industry trends, access to significant deal flow and the ability to assess relative value.
The Ares Private Equity Group pursues majority or shared-control investments, principally in undercapitalized middle market companies. The group seeks strong business franchises and situations where its capital can serve as a catalyst for growth. Its senior partners average more than 20 years of experience investing in, controlling, advising, and restructuring leveraged companies. The firm is headquartered in Los Angeles with offices across the United States and Europe. For more information, visit www.aresmgmt.com.
For more information contact:
Plasco Energy Group
Louisa Fenner (613) 591-9438 ext. 1501