SECOND QUARTER UPDATE:
The second quarter for the company has been one of progress and focus.
Development of the Algae REIT has taken form and the highlights are:
The underwriter for the IPO of the REIT has been selected. The company will announce the name and
commitment once the final agreement has been signed which should take place in the middle of the third
quarter. The REIT stock offering price and total amount to be raised have yet to be finalized, but early
budgets indicate somewhere between $30-50 million.
The project construction company, management team and operations supervisors have been selected, and
will be announced shortly. After nearly a year of interviewing companies throughout the world, we are
fortunate to have found a company which can do all aspects of the project from site preparation, to
operations, to sales. The economy of scale, will allow GCE to be a price leader in the supply of algae
feedstock.
The location of the first Algae project is being finalized and will likely be outside of Houston, Texas,the
company has narrowed the site down to three locations.
The design of the site will include 10% of the space to be used for research and development which will
allow GCE to develop new strains and applications in concert with end users.
The company also is in final negotiations for off-take agreements for sale of the algae production. The
company will be careful on pricing due to the tremendous growth in feedstock prices, yet keeping in mind
that sales are vital in the early stages of the project.
The company is also committed to finishing its” GAAP audits in the third quarter and refiling its’ FORM
10. Additionally, the company intends to have its’ Canadian audit firm due the audit conversions
necessary to apply for trading in Canada.
The company has during the quarter had a law firm do the final research on what the company considers
ongoing activities by an individual to undermine the companys’ stock price and damage our shareholders.
The final advice as to what actions should be taken to what entities has been received and the Board of
Directors will decide which part or parts of the recommendations the company will take.
