Published On: Wed, Aug 31st, 2016

Xfuels Inc (OTCMKTS:XFLS) Secures Financing Through Securities Purchase Agreement With Southridge LLC

Xfuels Inc (OTCMKTS:XFLS) has announced that it has signed a securities purchase agreement, with an affiliate of Southridge LLC. The EPA dictates that the company would have the right to sell its stock to the investor, provided that the investor does not own more than 9.99% of the total stock at any time and the aggregate purchase amount does not exceed $3.5 million. It should be noted here that Xfuels would have the right to designate the amount, timing and price of the sale.

Shares sold under the agreement would have to be first registered with the SEC. Michael McLaren, the CEO of Xfuels, expressed his pleasure at the agreement and stated that the agreement would provide adequate financing, within minor dilution limits. He also revealed that the proceeds would be used to increase production of a natural gas well, under a joint venture. Mr. McLaren also stated that part of the proceeds would be used to implement on site technologies, particularly the pilot Gas To Liquids system, Carbon fuel cells and hydrogen production technology.

Earlier this month, Xfuels provided an update on the company’s progress. In the update, the company stated that its joint venture with Converde, Area 2 Energy was going well and producing revenues. As such, XFLS is getting ready to implement maintenance plans and increase production. The company plans to do this before the winter peak season, with total production expected to reach 1.5 million mcf per day.

In the update, the company also disclosed that it has successfully brought its non-thermal plasma reactor, up to temperature on natural gas. As such, XFLS now plans to add a catalyst bed to the reactor, very soon, to begin liquid production. This phase is expected to be complete by late September, at which point the company would be ready to implement it at the Area 2 facility.

Xfuels Inc (OTCMKTS:XFLS) recorded a surge of 43.75% in terms of its share value, during the August 30 trading session, to close at $0.0046 per share, on a trade volume of 7.76 million.

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