Integrated Green Energy Solutions funding source not as expected
IGE has retracted its earlier statement about where expected funding might be coming from.
Shares in would-be green power play Integrated Green Energy Solutions are set for a battering on Monday after the company confessed that an $US850bn ($1.2 trillion) investment fund supposedly backing its project had never heard of its US partner.
IGE shares have more than quadrupled since the beginning of the year, from 11c on December 27 to a high of 30.5c a few days later, after the company said it was closing on a $US300m loan to back a US plant to turn shredded plastic from old cars into automotive fuel.
On Wednesday, it named the $US850bn Abu Dhabi Investment Authority (ADIA) as the source of the $US300m, through US investment partner Tangier Service Enterprises Inc.
But in an aftermarket disclosure late on Friday, IGE retracted its earlier statement, saying it had now been advised that ADIA “does not have any involvement with Tangier Service Enterprises Inc”.
“Therefore, ADIA is not the source of funding to be provided,” the company said.
But IGE said it was confident Tangiers would still come up with the cash, saying its $US300m investment agreement remains in place and it still expects to draw down the first $US80m tranche by the end of the month.
“Tangier obtains its funding from a variety of sources, including private and public institutions and individuals,” the company said.
Tangier’s US website was established in April 2019 and contains no details of directors, staff or completed transactions.
Its Facebook page contains no further details, except for a link to a company-run crowd-funding campaign to help US armed forces veterans “get started in their own business”. That campaign, created in September, has so far raised $US521 towards a $US1m target.
The little-known IGE has developed a technique to convert waste plastic to fuel without the drawbacks of the commonly used method (pyrolysis).
IGE is furthering plans to build its first plant in the Port of Amsterdam, slated to produce 35 million litres of petrol annually.
IGE shares closed down 3c to 13c on Friday.