BioNitrogen Corp. (BION), developer of a revolutionary patent-pending technology for converting renewable biomass waste into high-nitrogen urea, has entered a letter of intent with United Suppliers Inc. for the purchase of up to 300,000 short tons of urea annually.
The letter specifies the intent by United Suppliers to purchase up to 300,000 short tons (S/T) annually of urea in granular or prilled grade form. The binding agreement to be entered into will be for an initial term of three (3) years.
"As agricultural retailers who do business throughout the United States we are challenged to keep up with the dramatic changes that are happening in the agriculture industry." states Mr. Matt Carstens, United Suppliers, Vice President of Crop Nutrients, "We are committed to creating long-term relationships with both our agricultural retail dealer owners and our suppliers. We are constantly developing innovative products, programs and services and see a close and longstanding relationship with Dr. Collins and his team at BioNitrogen."
The Final Agreement is expected to close in the coming months and will detail, amongst other mutually agreed upon particulars, product specifications, method of delivery, pricing, and payment.
The projected start date is currently set as 3rd to 4th quarter 2013, and will be defined in the final Agreement. Further, it is understood that there will be no penalties for any delays in start-up, and both parties further agree that the number of plants constructed, and timing of such plants, may determine the initial ramp up period.
"United Suppliers is a modern leader in the plant and agricultural industry." stated Dr. Terry Collins, BioNitrogen's CEO and President, "This strategic partnership between our two companies will reward United Supplier's owners and operators, as well as our company and its shareholders. Our teams are ready to work diligently to complete and document the final agreement."