International Fuels News
Tuesday June 11, 2008 12:00 PM Eastern Time
IFT Signs Memorandum of Understanding with Libya Oil Holdings Limted and Affiliates (LOH)
LOH to Launch a Premium Diesel Product Using IFT's DiesoLIFT™ 10 IFT Receives $2,000,000 in Equity Capital from Libya Africa Investment Portfolio (LAP) and Its Affiliates
ST. LOUIS--(BUSINESS WIRE)--International Fuel Technology, Inc. (IFT) (OTCBB: IFUE - News) announced that it signed a memorandum of understanding (“MOU”) with LOH regarding LOH’s launch of a premium diesel fuel additized with DiesoLIFT™ 10 in five countries. DiesoLIFT™ 10 is IFT’s proprietary fuel additive formulation for diesel fuel.
The premium diesel product launch is immediate and will initially target markets in five countries. Going forward LOH will target 20% of their diesel fuel sales for the premium diesel product. Per the MOU, LOH has a six-month option to purchase up to 1,700 tons of DiesoLIFT™ 10 at an introductory price.
IFT and one of its distribution partners, Vision Oil Services Ltd, will be assisting LOH with the new product launch.
LOH is an integrated oil company involved in the shipping, trading, refining, marketing and sale of crude oil and refined petroleum products. LOH also operates over 1,200 retail petrol stations.
On June 9, 2008, IFT had received an aggregate $2,000,000 from LAP and its affiliates from the sale of 4,000,000 shares of IFT common stock. In addition, LAP and its affiliates were issued an option to purchase up to an additional 10,000,000 shares of IFT common stock at a weighted average purchase price of $.55 per share. Equity investment discussions between LAP and its affiliates and IFT commenced in March 2008.
“The ability of DiesoLIFT™ 10 to increase fuel economy and reduce harmful emissions will provide a substantial economic and environmental benefit to our customers and environment,” said Dr Ali Shamekh, Chairman and CEO of LOH. “Our new premium diesel will differentiate LOH and provide us with a distinct marketing advantage over our competitors.”
“Oil, chemical and additive companies are beginning to understand and accept the numerous benefits that our technology brings to diesel fuel users,” said Jonathan R. Burst, IFT’s CEO. “With historically high oil prices, the savings available to diesel consumers by the inclusion of IFT’s DiesoLIFT™ 10 as a component of the fuel blend has become very significant. The additional benefit of reducing harmful greenhouse gases is also a meaningful a factor for our environment.”
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