My notes from the BEHL SH Meeting.
In Attendance: Dennis Fisher (CEO and COB)
Frank Rawson (CFO)
Monique Berry (EVP and Dir)
Heather (Assistant)
Shareholders in attendance: Estimated 30, as people were moving around and outside to the hallway to make phone calls. Seating for at least 90 was provided with pen and paper for note taking.
Location: Number 1 ballroom of the Monte Carlo, with adequate refreshments provided at the back of the room. Very neat and organized display with literature available. The environment was clean and very quiet, ensuring a comfortable and easy to listen area for all. The room was adequately sized, not too packed and yet close enough that even those who wanted to be wall flowers in the back were still close enough to be included in the discussion.
Pre Meeting: Dennis Fisher and staff were walking around introducing themselves and talking with shareholders getting acquainted. Heather was offering name tags for those who wanted them (I refused the offer, I like my jacket without holes). Some discussion going on, overheard some scuttlebutt about Dennis Shen, it was centered around disagreement in management decisions. To put a fine point on it and some speculation to fill in the blank, it appears to be creative difference and allowing another company to come in and make changes. Take it however you want, I could clearly see that has more to do with others that were not initially involved in the beginning encroaching upon someone’s work.
Monique Berry is a very nice individual and is no wall flower there to look pretty, much like Dennis she had no problem walking up and introducing herself to anyone in the room. In my line of work when looking at a leader it is important to observe how other interact with those they do not know. Strength is introduction and carrying a conversation on your own, not being meek and avoiding possible interaction and staying close to those who provide strength. No crutch here……
Frank Rawson, interesting fellow here. Also not a problem with interaction, and he likes to discuss things in detail. I found him to be very realistic when discussing expectations, after the meeting we got to talk in detail about expectations of the OTCBB process and I walked away with full respect that he had a realistic timeline of events. Nothing wrong with being aggressive, but in this case this guy knows the hurdles and expects them to come out.
Notes: The reading of the March 24th PR after Dennis Fisher introduced himself, as you know he admits to not meeting the his own expectations and those of shareholders. He took full responsibility of making such promises and failing to meet what he had said was going to happen. Nothing more can be said on this, it is right there for everyone to read and interpret their own way. Being in the room all I can say is that it took the crowd by surprise, not exactly how you perceive the First meeting to go down.
Of course he moved on to the remainder of the PR talking about the private funding from Black Mountain, confidence was high that we were getting the funding and we should see something within 45 days or so. The new CEO has asked to not be revealed until his current commitments have been terminated, not an unusual request as my Wife is a Life Coach assisting top executives in transitioning from one corporation to another. It prevents bridges being burnt and creating animosity in the future as your network is your strongest asset. He felt we will all be happy with this decision of who it will be.
Of course the next matter of business was the 90 day expectations which you have already read in a PR about the website, laboratory, and so on. Word for word as read at the shareholders meeting. Once this was complete the floor was opened up for questions, surprisingly people were hesitant to ask right away, there was delay before the first hand raised up. I can say that Greenman100 asked just about every question that was posed on this board before the meeting, he read them off a list. Great stuff I wrote down some notes from this session and you have read most of this stuff here already so I will stick to some of my points of interest. That is just the way it works you are getting filtered information, you may have had other interest but… well you know the answer to this already……………
Expectations by the end of the year to have 25 acres up and running. A question asked about ENTK resulted in a less than enthusiastic reply by DF. First, it was painfully obvious that ENTK is a non player, without much details, it was pretty much written off as without the credit and cost effective process in place to separate oil it is not a profitable business plan.
Open pond systems, much dialogue up here about the efficiency and the possible contamination issues. An interesting point was brought up, as you know huge fires sweep through Southern California, that ash gets carried in the wind for miles. Turns out several open pond system fell prey to ash this year and the product was a complete loss. Ash is nearly impossible to filter and placing a tarp over an open pond for days kills the algae.
Series B shares were restricted for one year.
RWE going public will have no effect on the current JV with BEHL.
RWE will get 50% of the 6M order.
To set up HQ in Huntington Beach CA the cost before shovels hit the ground would have pushed to nearly $100,000.
The priority for revenues are as follows:
1. Algae Oil sales
2. Biomass
3. PBRs
A one acre system produces approximately 300lbs a day and at a cost of .05 per lb.
Current PPS aligns well with the current state of the company. Expect an increase to around .07 to .10 by the end of the year as revenues begin rolling in and current objectives are being met. This has not direct reflection on future objectives changing value.
No applications for federal grants as of yet, within 90 days. This seems to be more as a fall back if private funding does not come through. That was my take on this process.
The 504 has been paying employee salaries.
Life expectancy of parts:
1. Corners 12-15 years
2. Tubing 2-5 (recommended 2 year replacement cycle) cost of .17 a lineal ft.
More Omega3 contracts are currently being pursued, this is where a lot of money can be made in a short period of time.
The AS is at 1 billion shares and that will be it, the new 250million authorized have been restricted for 1 year.
OTCBB, progress is being made, but as you know this time of year is a little difficult to get auditors fulltime to review two years of financials. I would not expect audited financials posted until May. No CPA is going to undercut this time of year to dedicate themselves to one client.
In order to go to the NASDAQ it requires a PPS of over $3 being held for a 6month period of time, as you know the forward looking objective is there in two years. Pretty lofty in this current state. Time will only tell once we see revenues coming in, as the PPS will start reflecting future value as opposed to current value.
No RS, my take is this, it will all depend on the execution of this company over the next year. Success in generating revenues will raise the PPS. Going to OTCBB with a penny stock will make no sense, and if we are still here at this level, I cannot realistically see a way around it.
Broadstreet was the entity that accounted for the number of shareholders currently holding positions in BEHL.
Tyson’s, here is the deal with this company. As you know BEHL PRed almost a year ago about selling animal feed to Tyson’s. The Algae feed is rich in nutrients and with the concern for more vitamin rich type foods Tyson’s was looking for an alternative feedstock that may boost certain qualities in their chickens. Well in order to this BEHL must provide several hundred lbs of this feedstock for quality control testing, without a means to produce it is obvious where this is currently sitting. The door is open to future arrangements, as I am sure any company is open to a possible new way of doing things to improve their product or cut costs. DF stated this not dead and very much a future opportunity.
Currently BEHL is paying a $1 per lb for CO2. That is what initial costs will be when the PBR is up and running at SA.
These are my own notes and some of my own thoughts. Read them and do what you wish, I know it took a while to get them posted. But I was also out there for my own business and just got back yesterday, and what a packed two weeks it was. I got to go the NASCAR race, saw a USAC Sprint car race, got a tour through Carrol Shelby’s entire production area, ate at some of this finest establishments, got 2nd place in a Hold’em tournament and paid nicely for it, all in all a great 2 weeks.
