Viridis Energy subsidiary secures supply agreement

By Viridis Energy Inc. | March 09, 2015

Viridis Energy Inc. recently announced that its wholly owned subsidiary, Viridis Merchants Inc., an aggregation and trading service of wood pellets, has secured a contract with an existing supplier, for exclusive distribution of up to 18,000 metric tons of 100 percent Douglas fir pellets. The contract value is over CAD $6 million ($4.78 million) during 2015.

VMI launched its Okanagan Pellet Douglas Fir brand of premium pellets in early 2013 with an initial two rail cars in rotation. VMI has steadily increased sales to the dealer and distribution network, and now has between 25 and 30 rail cars in rotation. VMI has exclusive rights to this brand and supply in the U.S. northeast. The contract is expected to produce between 14,000 to 18,000 tons for the year 2015 and is expected to renew in 2016.

“The Okanagan Douglas fir pellets are a superior quality in the heating market and retail for 15 to 20 percent more than premium pellets. We are pleased with the additional volume this contract has provided as we were unable to fulfill all the demand last year,” said Christopher Robertson, chief executive officer.

 This contract follows the renewal of another Viridis Merchants contract, extending it to March 2016, with a contract value of CAD $3.5 million. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.