Woodland Biofuels - Convertible Debentures

Woodland Biofuels Inc. ○

Offering Description

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Woodland makes clean, renewable fuel at the lowest cost on the planet.
 

Woodland’s technology helps solve some of the world's most pressing problems by providing low cost fuel, dealing with excess waste, and mitigating climate change. Currently most of the world’s fuel supply is derived from oil. Near-complete dependence on a single source of fuel is expensive, bad for the environment, and dangerous. Using food to make fuel creates a different set of problems. Woodland’s technology uses waste biomass, not food, to generate low cost ethanol. From an environmental perspective, Woodland’s technology results in up to a 92% reduction in GHG emissions as compared to gasoline.

The following is a brief publicly available summary. For more fulsome and complete information, please register as an SVX Accredited Investor. 

Investment Highlights

Investment: Woodland Biofuels is raising $1.5M in convertible debentures on SVX, part of a total raise of $6M (the remaining $4.5M of which has already been committed by other investors, including $2.9M from NRCan’s Clean Growth Program).

Use of Proceeds: This financing is expected to enable the first commercial plant, unlocking rapid commercialization, and resulting in powerful environmental, economic and social benefits to Canadians.  Woodland’s waste-to-ethanol technology has already been proven at its demonstration plant in Sarnia, ON and the financing for construction of its first commercial plant has been largely arranged.  The purpose of this $6M is financing is to allow Woodland to complete the third and final stage of engineering prior to commencing full construction of the commercial plant, located in Ontario. With the commercial plant financing largely arranged subject to completion of the final stage of engineering, the current financing is an essential catalyst to unlock rapid growth. 

Investment Structure: Woodland’s offering is structured as convertible debentures. This provides the security of debt while retaining the upside of equity.  The debentures will mature in five (5) years if not converted earlier. For information around the conversion price, please download the Term Sheet available to registered SVX accredited investors. 

Investor Eligibility: This investment is only available to accredited investors. 

Please note that this is not a complete investment summary. Investors should read all associated documentation including the investor package and associated securities agreements before considering or making any investment. Please contact us via email at info@svx.ca or fill in the Ask a Question box for more information.

Woodland's Impact: Fighting Climate Change

Woodland is building a pathway to independence from fossil fuels with its proven low-carbon technology. Woodland’s technology results in:

  • Up to 92% reduction in greenhouse gas emissions vs. gasoline
  •  Reduced waste going into landfill or otherwise being disposed of
  • No toxic residues
  • Direct replacement for fossil fuels
  • CO2 emission reduction credits

In most parts of the industrialized world the transport sector is the single largest source of GHG emissions. Woodland delivers a paradigm-changing technology to this sector – reducing GHG emissions by up to 92%. The Woodland conversion system operates as a closed-loop process, with no emissions that could cause environmental damage. The closed-loop engineering results in almost no waste or by-product - a key reason behind its high yield and low cost of production.

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The Future of Fuel™ - Feedstock Opportunities

One of Woodland's most significant advantages is our ability to use a wide variety of feedstocks. Use of diverse renewable biomass feedstocks allows Woodland's plants to use non-food, waste materials. This helps minimize input costs and allows us to operate outside of the food-for-fuel debate that surrounds the traditional ethanol industry, which in North America makes ethanol primarily from corn. The following identifies some of the biomass feedstock materials that Woodland's CPR™ technology can use:

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Impact Metrics

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B Impact Assessment Score: 100.6

Metrics

  • Greenhouse Gas Reduction: One Woodland commercial plant would result in:
    • Environmental equivalent of taking 83,000 cars off the road per year.
    • 389,000 tonnes less of CO2 produced annually
  • Waste Diversion: Up to 400,000 dry tonnes of biomass waste diverted annually from landfill
  • Job Creation: Woodland’s first commercial plant will create a total of 324 full time equivalent, permanent, quality jobs
  • Rural communities: In Canada, forestry is the main economic driver for over 100 communities (down from 400 in the year 2000).  These communities will benefit economically and socially as Woodland’s technology creates permanent jobs
  • Revitalized forest sector (metric definition in progress): jobs created, facilities revitalized, closed facilities reopened.

Technology and IP

Woodland has the strongest intellectual property position in the industry, with the greatest number of patents of any organization converting bio-waste into ethanol fuel.

Woodland’s patents protect its unique process. Woodland’s process is uniquely efficient and because of this efficiency Woodland is expected to be the lowest cost automotive fuel producer on the planet. In a commodity business, cost of production is the key competitive factor. Beyond cost of production, Woodland’s climate change benefits include up to a 92% reduction in GHG emissions vs. gasoline.

Woodland’s process employs a series of proven technologies applied in an innovative chain – to produce clean, renewable fuel from waste. Woodland achieves high product yield and low cost production through a series of chemical catalytic reaction steps – in essence Woodland has discovered the lowest cost pathway to automotive fuel from biomass. This is not just Woodland’s view. These claims have been validated through independent reviews by third parties on key issues, including:

  • Validation of technology performance and low cost of production; and
  • Confirmation of commercial readiness.

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Validation and Traction

Woodland has raised $41M in institutional, private, and government capital to date, which was invested only after multiple third party engineering reviews and other due diligence.  This capital has allowed them to develop the technology, build and operate their large demonstration plant in Sarnia, Ontario, validate the technology, and embark on the first stage of their commercial plant rollout. Government support has come from multiple sources, including SDTC, FedDev, NRCan, Ontario Innovation Demonstration Fund, and Ontario Capital Growth Corporation. With the commercial plant financing largely arranged subject to completion of the final stage of engineering, the current financing is an essential catalyst to unlock rapid growth. 

Facilities and Commercialization Strategy

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Demonstration Plant
Woodland's demonstration plant is an integrated end-to-end biomass-to-ethanol operation. The plant is located in Sarnia, Ontario at the Bio Industrial Innovation Centre. Construction is complete and operations are underway. The plant has successfully produced ethanol from waste biomass. Equally important, plant operations confirm that Woodland is the low cost producer of automotive fuel globally. Operation of the demonstration plant has achieved a number of objectives: Confirmed targeted operating metrics, including industry leading low cost of production; Tested various forms of feedstock; and Optimized plant performance for the purpose of commercial plant operations. In designing, fabricating and constructing the plant Woodland worked alongside Zeton Inc. Zeton is widely regarded as the world's leading pilot/demonstration plant engineering firm. The plant was designed to provide logical scaling, from both an engineering and economic perspective, to our commercial plants.
 
Commercial Plant Strategy
Woodland has a two-pronged business model: Build/own/operate and Licensing to established operating partners. This dual approach is intended to facilitate the accelerated adoption of Woodland's cellulosic ethanol technology. Woodland already partners with some of the world’s leading companies, and we are very open to talking with new potential partners. Strategically important areas include: feedstock partners (forestry waste, agricultural waste, municipal waste), distribution partners (primarily the petrochemical industry), and technology implementation partners (engineering, fabrication, equipment suppliers, etc.). The commercial site selection process is primarily driven by fibre availability, cost and stability. We have the ability to use a wide variety of feedstocks, making it possible to locate almost anywhere sufficient biomass is available.

Management Team

Greg Nuttall

Greg Nuttall

President & CEO

Prior to becoming CEO of Woodland, Greg was a partner at Rubicon Investment Group, a merchant bank focused on accelerating the growth of the companies it acquires and invests in. Before this Greg was co-founder and CEO of a leading change management consulting firm that helps large and mid-sized organizations in Canada and the United States. At the outset of his career Greg was an M&A and corporate finance lawyer. As a lawyer he practiced at Clifford Chance and Torys. Greg has also been a successful technology investor as a venture partner of New Economy Capital. Greg earned his Master of International Laws degree at Cambridge University and is a Pegasus Scholar.

Chris Jamieson

Chris Jamieson

CFO

Chris Jamieson has extensive experience in finance, operations and banking. His background includes 15 years as a CFO of both public and early stage private companies, including roles as CFO of Union Energy (owner of Union Gas and Mark Resources) and Denison Energy. He is a Certified Management Accountant and holds B.Sc and MBA degrees from Queen's University.

Bill White

Bill White

COO

Prior to joining Woodland Biofuels William White was the President of DuPont Canada (1,000 employees, $1 billion revenue) and had an over 30 year career with the global DuPont company in Operations (Director, Global Operations), Marketing, Engineering and leadership of global business units. William brings a wealth of operating experience to Woodland and is responsible for overseeing Woodland’s plant operations and global commercial development. A long time champion of sustainability, he has recently been working extensively with developing businesses, particularly in cleantech.

$4,850,000.00

Raised Of $6,000,000.00 Goal*

Days Remaining 71
Hours 03
Mins 23
Convertible Debentures Offer. Structure
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