GreenHunter Energy merges with Orion Ethanol

May 31, 2007
Texas based company adds an ethanol maker to its portfolio of wind, biomass, methanol and biodiesel.

GreenHunter Energy of Grapevine, Texas announced today that intends to merge with Orion Ethanol (BULLETIN BOARD: OEHL), a Kansas-based ethanol company, in a stock swap.

After the transaction closes, current shareholders of Orion Ethanol stock will own approximately 51 percent of the combined company and current shareholders of GreenHunter stock will own the remaining 49 percent.

The two companies currently have a total of 46 employees.

At closing, Orion Ethanol, Inc. is to change its name to GreenHunter Energy, Inc. The company says it plans to list on either the NASDAQ or the American Stock Exchange.

The combined enterprise is to be led by Gary C. Evans, the former founder and Chief Executive Officer of Magnum Hunter Resources, a New York Stock Exchange listed oil and gas company that was sold to Cimarex Energy in 2005 in a $2.2 billion transaction.

GreenHunter Energy has a diverse portfolio of renewable projects including wind, biomass, methanol, and biodiesel. The company recently acquired Channel Refining, a Houston based waste oil and chemical refinery located on the Houston ship channel and Mesquite Lake, a southern California based biomass electrical generating facility.

GreenHunter also has six wind farm projects under various stages of development located in three western states.

As reported in the Cleantech Group's dealflow tracking last November, Orion secured $12.43M USD in funding to construct new plants in Enid, Oklahoma and Shattuck, Oklahoma (see More money for your biofuel co.? Sure!.)

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Comments

That's it! The engagement's off!

Submitted on July 13th, 2007 by Dallas Kachan

All's apparently not well in paradise.

Today, Orion Ethanol and GreenHunter Energy announced they have mutually agreed to terminate their merger agreement.

"The respective Board of Directors of both Orion Ethanol and GreenHunter Energy believe that it is not in the best interest of either company's shareholders to proceed with the proposed merger transaction at the time."

The two said they've "left open the possibility of structuring a transaction between the companies at some later date."

Now... what to do with all those party invitations and table decorations?

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