GROVELAND, Fla., July 24, 2012 /PRNewswire/ — Eco Ventures Group, Inc. (OTCBB: EVGI and EVGID) today announced that it has signed a Definitive Agreement to acquire a majority stake in Germany-based Energiepark Suptitz, GmbH (“EPS”). The Company on May 29 announced it had signed a binding LOI for the transaction, and closing is expected later in the third quarter.

The acquisition will bring together two renewable energy companies whose technology, biofuel and grid-tied energy products will create a diversified international platform with important operating synergies. EPS is a diversified alternative energy feedstock, transportation, heat & solar power production company with approximately 50 employees — whose primary business is the production, processing and brokering of alternative energy feedstocks including rapeseed, palm oil and wood.

According to its preliminary (unaudited) 2011 financial results for the year ended Dec. 31, EPS generated 2011 EBITDA of $2.7 million on $30 million in revenue, for a 2008-2011 average annual revenue growth rate of approximately 42 percent (all EPS financials are Euros converted to USD at 1:1.29). EPS’ 2011 financial audit will be performed by a PCOAB certified auditing firm in accordance with U.S. GAAP standards. Based upon interim first half of 2012 results, the Company expects this trend in revenue growth will continue in 2012 and beyond.

EPS produced approximately 7,200 metric tons (2.1 million gallons) of rapeseed oil in 2011, and plans to more than triple its capacity to approximately 25,000 metric tons (7.2 million gallons) in 2012. To capitalize on EPS’s growing rapeseed production leadership position, and increasing European demand for bio fuels, EVGI plans to construct a next-generation bio fuel production plant at EPS in 2013 which will greatly expand the gross profit margins from EPS’ rapeseed production.

Commenting on the Definitive Agreement, Randall Lanham, Eco Ventures Group CEO said, “As we spent considerable time at EPS in Germany last month, completing our due diligence leading up to the definitive agreement, we were increasingly impressed with its talented and dedicated management and workforce, extensive industry contacts, leading technologies and solid financial position.

“EVGI will transfer our bio fuel processing technology and knowhow to EPS in Germany, to process and dramatically step up the value of its increasing rapeseed production there,” Mr. Lanham added. “This will enable EPS to capture market share in the growing European bio fuel market, adding a high value alternative energy production platform — and profit center — to the combined companies’ portfolio. I expect our U.S. and German bio fuel production businesses will become our largest, most profitable segments in 2013, and 2014, respectively.”

EVGI – EPS Definitive Agreement

Under the terms of the Definitive Agreement, EVGI will acquire 75% of the Shares of EPS in exchange for restricted shares which, upon issuance, will constitute approximately 30% of the issued and outstanding shares of common stock of the Company (“the Acquisition Shares”), and cash consideration of approximately $8,300,000. EVGI has the option to acquire the remaining 25% of the shares of EPS at a price which shall be equal to 25% of the net value of the combined companies, as defined in the Agreement. Pursuant to the Agreement, the Company has also agreed to file a Registration Statement on Form S-1. EVGI today has approximately 34,000,000 million shares issued and outstanding.

EVGI and the U.S. Biofuels Market

EVGI is on track for fourth quarter completion of its 3.6 million gallon bio fuel plant at its Groveland, Florida headquarters, which will process biofuels from oil-rich plants and recovered cooking oils. At its full capacity, the Company expects this facility can generate annual gross revenues of approximately $16 million in sales with gross margins of about 30 percent. EVGI already has long term bio fuel off-take agreements available to it for twice that capacity and is evaluating increasing its bio fuel production capacity substantially in 2013 in the U.S. as well as at EPS in Germany.

U.S. demand for biofuel far outstrips availability. According to the revised U.S. Federal Renewable Fuel Standard, the requirement for bio fuel production in the U.S. has been increased to one billion gallons of bio fuel that need to be produced domestically in 2012. The U.S. Department of Energy shows the current U.S. bio fuel production is approximately 700 million to 800 million gallons annually. Today, drought-driven high U.S. corn prices render ethanol economically less feasible with a number of U.S. plants shutting down.

About EPS and the EU Renewable Energy Market

Germany‘s renewable energy sector is one of the most innovative and successful worldwide. Nearly 800,000 people work in the German environment technology sector, an estimated 214,000 people work with renewables in Germany, up from 157,000 in 2004, and increase of 35%. The renewable energy sector has had a surge in the production of renewable energy since the Renewable Energy Sources Act, which promotes renewable energy mainly by stipulating feed-in tariffs that grid operators must pay for renewable energy fed into the grid.

EPS also produced approximately 14,400 tons of rapeseed cake in 2011 that it sells as animal feed. In addition to its rapeseed and fuel stock sales, EPS produces, processes, sells and trades alternative energies from biomass that includes operating its own oil mills, supporting transportation and warehouse logistics, as well as, the generation solar energy.

Most of the major German woods processing plants outsource timber transportation to sub contractors including EPS, which is an established market leader in its region with its fleet of 25 timber trucks. This division generated approximately $3 million in 2011 gross revenue.

EPS developed and operates a new solar park that commenced operation in June 2010. It has a Purchase Power Agreement which covers the cost of its project financing and includes a 20-year contract from the German government to purchase all of the power produced. This division generated approximately $2 million in gross revenue in 2011. The German solar PV industry installing 5.9 GW in 2011 and solar PV provided 18TW-h (billion kilowatt-hours) of electricity in 2011, about 3% of total electricity. Market analysts expect this could reach 25% by 2050.

Extraordinary Synergy

Germany has committed to blending 6.25% biofuels in petroleum by 2014 with the Biofuels Quota Act. Based on such mandates and national policy incentives, bio fuel consumption is forecast to continue to grow to 5.4 billion liters in 2013. According to the US Department of Agriculture, during 2012 and 2013, Germany and the UK will be the leading European bio fuel markets.

EPS will leverage EVGI’s bio fuel processing technologies and industry contacts to raise the Company’s profit margins by blending and processing EPS high quality rapeseed oil and other low cost feedstocks into bio fuel in Germany. In Europe as well as the U.S., the trend is to rapidly increasing bio fuel consumption as large corporations, militaries, commercial airlines, cruise ships and more are actively considering, or are now beginning, to use bio fuels for their fleets to comply with regulatory requirements and to market themselves as “green’ to their constituencies. Currently, the bio fuel markets are constrained by supply.

Diversifying the EPS’ business units to include bio fuel production will further solidify the Company’s presence in the global renewable energy sector. The Company anticipates its U.S. and German bio fuel production will be its largest and most profitable business segments, respectively, ramping up rapidly in 2013 and accelerating in 2014 and beyond.

About Eco Ventures Group, Inc.

Eco Ventures Group, Inc. (“EVGI”) is a family of ecologically friendly and economically sound businesses committed to providing for society’s minerals, energy and renewable resource needs (www.ecoventuresgroup.com).

EVGI concentrates on two core business activities. Eco Energy Group focuses on the production of advanced biodiesel from recovered cooking oils and oil rich plants and Eco Minerals Recovery Group which specializes in the extraction of precious metals from ore bodies and reclaimed mine tailings.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: EVGI encourages those interested in our Company to rely only on information included in our filings with the United States Securities and Exchange Commission which can be found at www.sec.gov. Statements released by Eco Ventures Group, Inc. that are not purely historical are forward-looking within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s expectations, hopes, intentions, and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company’s business prospects and performance. The company’s actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental, and technological factors as discussed in the company’s filings with the SEC on Forms 10-K, 10-Q, and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.

Contact:
Eco Ventures Group, Inc.
Investor Relations
7432 E. Highway 50, Suite 101
Groveland FL 34736
Phone: (352) 557-4830
Email: info@ecoventuresgroup.com

Investor Contact:
Mirador Consulting
Frank Benedetto
Tel: (561) 989-3600

SOURCE Eco Ventures Group, Inc.