BASEHOR, Kan. -- Ethanex Energy Inc., formerly New Inverness Explorations Inc., today announced the closing of a stock-for-stock merger with Ethanex Energy North America, Inc.

The combined company will operate under the name Ethanex Energy Inc. and will assume and execute Ethanex Energy North America's renewable energy business plan as its sole business. Ethanex Energy will retain senior management led by President & CEO Al Knapp and its board of directors led by Executive Chairman Robert C. Walther.

In contemplation of the merger, Ethanex Energy completed a $20 million private placement of common stock and warrants to a group of institutional and accredited investors.

"The successful completion of the merger and our financing represents a significant step in positioning the company for future growth," Knapp said. "Substantial investments from premier institutional investors in our private placement have given us access to both capital and strategic introductions that will significantly benefit the Company moving forward. The public listing provides the proper venue for attaining a higher level of corporate visibility and allows investors to better assess Ethanex Energy's value in relation to its publicly-traded peers."

Ethanex Energy is a developer, owner and operator of ethanol plants and marketer of ethanol and its co-products.

"Over 95 percent of existing ethanol plants employ a modest variation of the same process technology. The Renewable Fuels Act of 2005 and subsequent investor interest have paved the way for next generation technologies and significant reductions in the cost of production of ethanol", said Co-Founder and Co-COO Bryan Sherbacow.

Ethanex Energy is currently developing three ethanol production facilities located in the Midwest, with a combined production capacity of approximately 300 million gallons of ethanol per year. Ethanex Energy is concentrating its geographic focus in areas that allow access to abundant supplies of corn, alternative energy sources, transportation infrastructure and the potential for expedited permitting.

All of the Ethanex Energy plants will employ the latest dry milling technology, including a proprietary implementation of corn fractionation. This will result in higher ethanol yields per capital expenditure and significantly lower cost of production compared to traditional dry grind or wet mill facilities. The company expects these three plants to be operational in 2008.

Ethanex Energy Inc. is an alternative energy company whose efforts revolve around becoming the industry's low-cost producer. Ethanex Energy's acquisition and brownfield development strategies afford it rapid capacity development with significant operating cost advantages. Ethanex Energy is based in Basehor, Kan., with offices in Santa Rosa, Calif., and Charleston, S.C.

SOURCE: Ethanex Energy Inc. via Business Wire.