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Kreido Biofuels, Inc. Completes Merger And Closes $25
Million Private Placement
Camarillo, California - January 16, 2007 Kreido
Laboratories, a privately held alternative energy company, today announced
the completion of a
reverse merger with publicly held company Gemwood Productions, Inc. The
Company, which will operate under the name Kreido Biofuels, Inc.,
is now listed on the OTC market (OTC: KRBF.OB) and will
pursue Kreido Laboratories’ renewable
energy and process intensification business. In contemplation of the
merger, Kreido Biofuels completed a $25 million private placement of
common stock and warrants to a group of institutional and accredited
investors.
“Substantial investments in our private placement
from several premier institutional investors, plus the continued strong
support
of
our existing
investors, have given us access to both capital and strategic introductions
that will position the Company for rapid growth and accelerated time
to market,” said Dr. Joel Balbien, President & CEO. “Further,
the public listing of our securities will help us gain mindshare as a
leader in alternative fuels and process intensification technology, and
facilitates our international licensing efforts.”
Kreido Biofuels,
Inc. will develop, own, and manage biodiesel plants, market biodiesel,
and license its advanced process intensification technology.
Through the application of its novel patented STT® reactor system,
the Company can rapidly switch between alternative vegetable oil feedstocks
within a cost-effective minimal-footprint plant. The STT® technology
is also being applied by Licensees and partners to the development and
commercialization of other chemical products -- including “Green
Solvents” and small molecule pharmaceuticals – where it has
the potential to increase yields, enhance selectivity, and significantly
shorten time to market.
Kreido has invested over $20 million developing
its patented STT® reactor
system. The Company’s technology can rapidly scale a number of
chemical processing recipes, including unique formulas for soy, canola,
and palm biodiesel, from “Pounds per day” to “Tons
per day” of continuous production. Over ninety-five percent of
existing biodiesel plants employ a variation of the traditional transesterification
process. According to COO, Ben Binninger, “we offer a way to significantly
reduce the cost of processing, as well as accelerate time to market.”
Kreido
Biodiesel is currently developing three biodiesel production facilities
located in the mid-west and southeast with a combined production capacity
of over 100 million gallons of biodisel per year. Kreido Biodiesel is
concentrating its plant construction in existing liquids handling facilities
located on deep water ports, where there is storage and transportation
infrastructure, potential for rapid permitting, and access to multiple
feedstocks and fuel distributors. The Company expects the first plant
to be operational in 2007 and the balance of the plants in 2008.
About
the Company
Kreido Biofuels is providing the world renewable energy through its proprietary
process intensification technology - the STT™. Our manufacturing
methods significantly improve the efficiency, quality, and process control
of biodiesel production. To build a sustainable future, our goal is to
provide the industry cutting edge technology that improves the manufacturing
of biofuels. The Company’s senior management has over 50 years
of experience in the energy sector including the design, construction,
operation, and management of petroleum refining, natural gas distribution,
and chemical processing facilities. Kreido Biofuels has also established
collaborations with university and government laboratories, such as the
US Environmental Protection Agency (US EPA), to gain a leading position
in the development of advanced chemical processes. Kreido Biofuels is
based in Camarillo, California. For more information about Kreido Biofuels,
visit www.kreido.com
# # # #
Forward-Looking Statements
This press release contains 'forward-looking statements' within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section
21E of the
Securities Exchange Act of 1934, including without limitation those statements
regarding the Company's ability to exploit ethanol development and production
opportunities. These statements are expressed in good faith and based upon
a reasonable basis when made, but there can be no assurance that
these expectations
will be achieved or accomplished. Although the forward- looking statements
in this release reflect the good faith judgment of management, forward-looking
statements
are inherently subject to known and unknown risks and uncertainties that may
cause actual results to be materially different from those discussed in these
forward-looking statements including, but not limited to, our inability to
generate sufficient operating cash flow to construct and adequately
maintain our production
facilities and service our anticipated debt, commodity pricing, environmental
risks and general economic conditions. Readers are urged to carefully review
and consider the various disclosures made by us in the our reports filed with
the Securities and Exchange Commission, including those risks set forth in
the Company's Current Report on Form 8-K to be filed on January 16,
2007, which attempt
to advise interested parties of the risks and factors that may affect our business,
financial condition, results of operation and cash flows. If one or more of
these risks or uncertainties materialize, or if the underlying assumptions
prove incorrect,
our actual results may vary materially from those expected or projected. Readers
are urged not to place undue reliance on these forward-looking statements,
which speak only as of the date of this release. We assume no obligation
to update
any forward- looking statements in order to reflect any event or circumstance
that may arise after the date of this release.
Contact Information:
Public Relations Contact for Kreido Biofuels:
Denica Gordon
DGPR, LLC
Office: (323) 253-9337
Email: dgprconsulting@aol.com
Investor Relations Contact:
John Mills or Ina McGuinness
Intergrated Corporate Relations
Office: 310 -954 -1100
Email: Ina@icrinc.com, jmills@icrinc.com
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