REX Stores Corp., the consumer electronics retailer, announced Tuesday that it has invested $5 million in Big River Resources LLC, an Iowa ethanol manufacturer, and an additional $15 million will be invested in exchange for a minority equity interest in the company.
Big River Resources, LLC is a holding company for several entities including Big River Resources West Burlington, LLC which currently operates a 52 million gallon, dry-mill ethanol manufacturing facility in West Burlington, Iowa.
Big River Resources West Burlington is planning to expand its facilities to produce 80 million gallons per year, and intends to develop several more ethanol production plants.
REX is also investing $14 million in Millennium Ethanol, LLC, in the form of a convertible note that gives Rex rights to convert the note, with additional funds, into a minority ownership interest in Millennium.
Millennium Ethanol is now building a 100 million gallon per year ethanol production facility in Marion, S.D.
Previously, REX invested $11.5 million for Levelland/Hockley County Ethanol, LLC, which will be building a 40 million gallon ethanol plant in Levelland, Texas.
REX will also be securing a majority equity interest in Levelland/Hockley, and subject to certain conditions, will fund up to an additional $6.5 million to further increase its ownership.
In addition to Big River, Millennium and Levelland/Hockley, REX has entered into contingent agreements to fund $16 million for Patriot Renewable Fuels LLC and $24.9 million for One Earth Energy LLC.
Patriot, in Annawon, Illinois, and One Earth, in Gibson City, Illinois, plan to build ethanol manufacturing facilities capable of producing 100 million gallons each, annually.
According to Stuart Rose, REX’s chairman and CEO, Rex's ethanol interests allow the company to extend their presence in the energy sector and diversify their earnings mix.
In addition to Big River, Millennium and Levelland/Hockley, REX has entered into contingent agreements to fund $16 million for Patriot Renewable Fuels LLC and $24.9 million for One Earth Energy LLC.
Patriot, in Annawon, Illinois, and One Earth, in Gibson City, Illinois, plan to build ethanol manufacturing facilities capable of producing 100 million gallons each, annually.
According to Stuart Rose, REX’s chairman and CEO, Rex's ethanol interests allow the company to extend their presence in the energy sector and diversify their earnings mix.
