July 1 - REX American Resources (NYSE:REX) has entered into a definitive agreement to acquire an approximate 48% equity ownership interest in NuGen Energy, LLC for $9.2 million with a commitment of up to an additional $6.5 million based upon the future profitability of NuGen.
NuGen Energy, a subsidiary of Central Farmers Cooperative, operates a nameplate 100 million gallon ethanol plant in Marion, South Dakota. The plant was built by Fagen, Inc. and utilizes ICM, Inc. technology. Upon completion, the investment will increase REX’s overall ownership interest of annual nameplate capacity ethanol production by approximately 33%. REX intends to fund its initial investment from cash on hand, and at April 30, 2010, REX had cash and cash equivalents of $86.1 million at the parent company (exclusive of approximately $15.3 million of cash at consolidated ethanol production facilities).
REX's name and stock symbol changed in June to REX American Resources Corporation (NYSE: REX)