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The share structure only matters when you are dividing up the market value of the company to determine how much your investment is worth. It's much more basic than that right now. If Allendale doesn't get built, your shares are worth zero, and it doesn't matter whether there are 1.5 billion or 2 billion or 10 billion. If the plant isn't built, VGPR has no cash, no assets, 1 employee, and a market cap of zero. Allendale...WHERE DOES IT STAND?? We need a PR addressing this before price is at .0010 (which kills PPM). We don't want to hear about new torrefaction processes or Joe James last bowel movement....What about the plant and it's financing and construction? It's not too much to ask.
I understand your points. You mention that after it's all up and running, and making a profit, that it was all paid for with VGPR common shares. That may be the BEST we can hope for. At least the plants are built and operations are generating a profit in your scenario. I don't think that's a given. I'm concerned the PPM needs to sell out for Vega to get all this done. And the further the price drops, the more difficult that will be. If you do the math, PPM investors, with a 10k investment, are getting 10 million shares after a two year hold. That's .0010/share and you must wait to sell. As the price plummets, if it gets to .0010, it makes no sense to invest in the PPM because you could just buy 10M shares on the market and sell them tomorrow if things go bad, and cut your losses. PPM investors would suffer a total loss. If price goes near .0010, PPM is dead, unless already sold out. I haven't even got it in the mail yet, so I doubt it's sold out. As to what Molen brings to Gaspard and James....if you believe it, a $57M sales order for biocoal, and a potential international order for biochar. Sales and cash to build operations with are what Molen brings to the table.
Insidious...Perhaps I read more than you think. I have Joe James linkedin page saved in my favorites. I read it. It says "funding for the plant has now been committed". By whom? Perhaps he has Agri-techs in line and a "commitment" from Michael Molen for VGPR's side of it. Nowhere does it say where any of it is coming from. Do you seriously think VGPR's side of the funding is a sure thing? In the conference call M. Molen said that one of the reasons for the PPM was "to meet our obligations with our joint venture partner". Does that sound like the money's in the bank? If the PPM is not successful, I doubt Allendale gets built, at least with any VGPR involvement. It's starting to smell like the Georgia plant that never got built. You go off on a tangent about share structure and shareholder value, and I agree with everything you said. My concern is that the problem is much more immediate and urgent than that. If Allendale doesn't get built, it doesn't matter how many shares the CEO has, they will be worth zero.
Good post T. It would be extremely helpful if the CEO's next "news" release would include news on the only thing that matters. Allendale. Last release dealt with some new torrefaction process, and all that is well and good, but it doesn't matter if there isn't a building and torrefaction machine in place in Allendale to do it. CEO should release #1 All necessary funding is in place and ready, to build the facility. #2 Firm start date for construction. #3 Updated estimate for completion of facility. Joe James of Agri-Tech should confirm all of the above to add credibility to the statements. These guys have to know the answers to those questions, and we as owners, deserve to know. If the news is what we hope to hear, this would stop the free-fall the stock is in. If the CEO has plans to use the remaining shares it holds, as a currency for acquisitions and such, it would be helpful if the price wasn't at trip 000's in the future. Bio-char is great, it helps pay some bills, but the key is the Allendale plant. Where does it stand?
Regarding moving off the pinks...It's at the 25 minute mark of the conference call. Molen mentions that the audit process has begun. He said he felt comfortable that by the end of the year it could be accomplished, maybe the end of October. Host of call brought up the fact that the stock had to be over a penny, and Molen stated that he hoped news releases over the coming months would get the stock price to those levels. I'm not saying it will happen, but that's what was said on the call. Have a listen and see what you think. Right after this topic, he talks about cancelling the last reverse split.
GLTA
Mr.AAA...Your post is the first mention I have seen anywhere that states the plant has been delayed to the end of the 2nd qtr., 2015. Could you please provide your source? Much discussion of a reverse split and delay on the board. To my knowledge, neither has any basis in fact. If you have factual info to the contrary, we would all love to read it.
GLTA
Freewolf, If a reverse split is the grand plan, why did they cancel the one planned for a few months ago? Why did the company retire 90 million free trading shares a few months ago? Those are very unusual actions for a company that is supposedly just selling shares. This stock will pop in two stages IMO. The first pop will be when someone posts actual photos of construction of the Allendale plant. The second, and larger, pop will occur when biocoal shipments appear on the financials in 2015. I think we are pretty much immune from news releases moving the stock anymore. Shareholders want to see proof the business plan is happening.
GLT VGPR longs
Well Reign and Hoggy, we all have our opinions. You may have paid dearly for yours. I'm sorry if that's the case. One thing for sure, we'll all know by the spring of 2015. We all pay our money and place our bets. Good luck to all.
Reign...Since you believe M Molen is selling unrestricted shares into the market, what are your thoughts as to what he is doing with the proceeds?
Taemujin...Great find! Must listen for VGPR longs. Only takes eleven minutes. Joe James of Agri-Tech explains how biocoal could actually be produced at a lower cost to utilities than coal. 30 toxic coal ash sites in South Carolina and 30 more in NC. Duke Energy estimates 10 BILLION cost to clean up NC alone. Agri-Tech has solutions. Seems to be a crying need for the type of plant we are building in Allendale.
I can understand why some here are bitter because they have past losses in this stock, but I truly believe it's different this time because of Joe James and Agri-Tech. As Jaxxon said, the guy is a freakin genius. Stellar reputation and connections in government, the green community and the university community. More patents pending. VGPR provides him with badly needed capital and sales connections. He and Molen have traveled together and shared the conf. call along with Gaspard. To me, this is why it's different this time...M. Molen has surrounded himself with a team (James and Agri-Tech along with Gaspard and Biochar Now) that wasn't in place in the past. They are setting this up right. They are acting unlike VGPR of the past by cancelling reverse splits and retiring shares. Those with patience will be rewarded in 2015 IMO.
Keep up the great work T.!
Freewolf, not to be argumentative, but I wouldn't fear a reverse split if the end result was to get us off the pink sheets and onto a better exchange. Whether I have 10 shares at a dime, or one share at a dollar, the math works out the same. But moving to a better exchange could be very positive for the stock. It's the REASON for a reverse split that matters. The same goes for M. Molen using VGPR shares as a currency. Yes, there may be more shares floating around on the market, but what benefit did the company receive and is the company now worth more than before.....as with the Gone Green acquisition which gives us the rights to worldwide sale of biochar for any application. It cost 200M restricted shares that will eventually hit the market, but how much could those distribution rights be worth?
Good luck to you.
Mansion, you are right. Biocoal could be huge and that's not the only thing we could be involved in with the power companies. There was a recent story in my area about Duke Energy shutting down one of their older coal-fired power plants here because it would be cost prohibitive to bring it up to new standards, and mentioned the fact that Duke would have to maintain the property for years after shutdown because of the toxic coal ash ponds. VGPR and our JV partner have potential solutions for both problems. A university study stated that using biocoal could lengthen the useful life of the old power plants by two decades, while meeting new standards, before the plants would have to be retired. Agri-Tech (JV partner) has a way to deal with the coal ash ponds. It is already a form of biochar and used in agriculture. Problem is it contains toxic heavy metals and can only be used in small amounts so it doesn't leach into plants. Agri-Tech has a way to use the ash to grow a modified sorghum plant that absorbs the toxins to clean the ash for use in agriculture. The toxins are then removed from the sorghum in a separate process and the biomass from the plants is then used to make more biocoal. The biocoal and biochar businesses have a lot of crossover potential. Many potential revenue streams for VGPR.
GLT VGPR investors!
Agree Jaxon! What many may have overlooked is that VGPR came within $46K of showing a profit last qtr. I'm not talking just revenues, but actual earnings. We made 26K on 53K in sales, a 50% gross margin. One truck load of biochar would bring in 18k in PROFIT. We were within 3 truckloads of not only showing revenues, but actual earnings. Any order from a national or even regional chain would dwarf that amount. There are many, many larger companies (non pinks) that aren't that close to profitability yet they command high stock prices. Hopefully biochar pays the bills while biocoal pays for future expansions to grow the company. VGPR also has no interest expense on the financials. No bank loans. Investors have financed the company. Future gross profits have a much easier time making it to the bottom line if not smothered by interest expense and high operating costs. VGPR seems to be setting it up right. Keep the costs low, strong gross margins, investor financing and investing in production capacity. The price per share will reflect this when it happens. End of year looks promising, 2015 looks even greater.
Best of luck to fellow vega investors!
Another item from Joseph James Linkedin page....We've been discussing how his page states that funding has been committed for the Allendale pilot plant. Another item caught my eye and I wanted to see if anyone here knows the answer. The previous sentence on his page reads, "ATP-SC has been given the EXCLUSIVE RIGHT TO DEVELOP TORREFACTION PLANTS IN SOUTH CAROLINA and is developing a 3.65M 13,000t.p.y. pilot plant on the grounds of a very large wood processing operation in Allendale, SC. Is that possible?...the JV partners have no possible competition in an entire state? We already know that the PATENTED NC State machine is the best technology available (lower energy usage, able to use undried biomass) etc., and that our JV partner has the EXCLUSIVE LICENSE to use the design. Do we now have the EXCLUSIVE rights to operate plants for the entire state?. Pretty incredible if true...and should keep the price of the wood waste minimal, since they would have to ship it out of state to another operator if not sold to ATP-SC. Probably cost prohibitive. I'm fairly new here, so if someone can fill in the blanks, I'd appreciate it.
GLT VGPR longs
Rudy, I can only tell you where I am with it. I received an email from M. Molen a week ago. It was the Non-Disclosure Agreement you have to sign and return to get the PPM paperwork to look over. I signed and returned same day and expect the PPM to arrive anytime. I'm not complaining, just letting you know where I am with it. 30 days to have it sold out and all funds received might be a push. When I listened to the conf. call, I was curious about one thing Michael Molen said, regarding the PPM. If Insidious or anyone can help, please do....He stated that the proceeds of the PPM were to be used to "meet our obligations with our joint venture partner and to expand production of biochar". Insidious posted a link to Joe James Linkedin page in which he states, "funding has now been committed and the plant is scheduled to open in Q1, 2015". I think Joe James is a man of integrity and if he says the funding is committed I believe him. I just wonder if part of the commitment is from VGPR and MM is still trying to raise the funds, or if MM had some other meaning when he stated the PPM was to "meet our obligations with JV partner". I would think that some of the funds could be used prior to it selling out completely, if need be, to keep construction on schedule. Hopefully, none of the PPM $ are needed to get the pilot plant going. But whatever it takes to get there, so be it.
Lastcall59....The PPM shares (class C) convert to VGPR common at the end of 2 yrs. at a ratio of 2500 to 1. The 4,000 shares will be 10 million. You have to compensate those investors for the additional risk of not being able to sell their shares for 2 yrs. Anyone here with common shares could sell tomorrow if the story turns sour. PPM investors will not be able to do so and potentially face a total loss. You pay your money and you take your chances. Whether that is a good deal or not is up to the individual investor. I also got the Non-Disclosure to sign in an email from MM. Waiting for the PPM to arrive to look it over. It doesn't violate the NDA to simply say I got it in the mail. Loyalhound, I agree that VGPR suffers from manipulators and heavy short interest. There isn't much the "big 3" can say to stop it. They simply have to produce, and the nonsense will end. The market will get it right eventually if they execute the business plan. I was very encouraged to see revenue show up on VGPR's top line. 53K and it was probably all late in the qtr. Also, it showed a 50% gross margin on those sales (all biochar I assume). Two truckloads were shipped for testing or test marketing at a price of $70k. Profit on that alone would be 35K or 17.5K per truckload. One last thought...it's so kind of the negative folks here to constantly worry about our money. They all have no financial interest here whatsoever (ahem), but constantly monitor the board just to protect uninformed investors like VGPR longs. They are truly the Mother Teresa's of I-hub.
I know several people who run businesses out of a residential home on a golf course. What's wrong with that? Why is that impossible?
Not mentioning any names, but for those who haven't bothered doing any DD before bashing, ATP-SC, LLC is a joint venture between Agri-Tech Producers, LLC and Vega Biofuels.
Joseph James of Agri-Tech talked about it all while appearing with Michael Molen And James Gaspard on the conference call that you missed.
Balamidas....Please don't misunderstand. I like the company's prospects. Great products and technologies, patent protection, exclusive license, strong demand, Joe James, James Gaspard and on and on. I just would like to know how many people I'm going to have to share the pie with. I know there could be share buybacks etc to help. But with any investment, you try to figure out what the future value might be to evaluate your risk. It's just a shame that this company puts out such confusing, nebulous, head-scratching press releases and then amateurish financials. On a day we should all be CELEBRATING the first revenues in company history, we are on here talking about confusing share counts and statement errors. Hopefully it's just part of being a start-up and is improved upon in the future.
Good luck to you
Question for the group....Does anyone know the conversion ratio for the Preferred "B" shares (~1.6M outstanding)? I'm trying to figure out just how many shares of VGPR common will be outstanding when all the restrictions come off of the preferred shares. There are currently 1.53B shares of VGPR common outstanding. If the PPM is sold out at $1M that will eventually add 1B more when restrictions come off in 2 yrs. That already puts us at 2.53B without Vega issuing any more of the .47B authorized but unissued (for deals, debt reduction or any other reason). If we assume those are going into the market as the company uses them as currency to finance deals, we are at 3B. You then have to add however many the "B" shares will convert into when any restrictions come off. There is also one Class "A" share outstanding and I have no idea of the conversion details. In the issuance history section of the financials, it states on line 7 that 97M shares of common were issued to retire 22,750 shares of "B". If that isn't a typo or a misunderstanding on my part, that's a conversion of 4,263 to 1. Multiply that by 1.6M outstanding and you get a crazy number of over 6.8B. Can anyone enlighten me? I'm just trying to come up with a potential price/share 2 yrs from now. It's hard enough to guess the market value of the company into the future, but it certainly would help to know how many shares to divide it by.
GLTA
T...Are you sure you're not wanting to work for VGPR for the free MMJ sales samples? :) I agree there is nothing wrong with the current set-up with Biochar Now. A joint venture is just the logical next step and seems necessary because of the demand. A nice problem to have. The Gone Green deal for 200M shares seems a smart move long term. I'm not overly concerned about the outstanding share count. We have to get the biocoal plant built, and if this helps get that done, then so be it. It doesn't matter if only a billion shares are out and the company is worth nothing. Likewise, none of us will care if there are 2 billion or more out and we are shipping biocoal and biochar and growing exponentially. This thing could be unstoppable if we can just get it started. It's coming. I'm not a whale here, but I plan to do my part and participate in the PPM if allowed. It's the little things that are telling me it's different this time for VGPR. Cancelling a reverse split. Retiring 90M shares. A PPM instead of flooding the market with shares now. Gaspard and Joe James appearing with MM on the conf. call. There is a plan and it's working. By the middle of next year, patient investors are going to be very happy. IMO.
Good luck to fellow longs
GAT, It's on the just released financials, under "statement of stock activity and shareholders equity". The outstanding shares of common stock went from ~900M to ~1.5B. Look at Item #4 Issuance Activity for a breakdown. I know the GONE GREEN acquisition cost 200M shares. It was a stock deal where VGPR used some of it's available stock as a currency. At today's price, the deal cost $500,000. Doesn't seem too bad for the rights to sell biochar for ANY APPLICATION and WORLDWIDE, and at an increased commission rate. Over time, should be a good deal for VGPR. Some of the other transactions were conversions exercised by preferred share owners (class B) for shares of VGPR common. Much like the new PPM will work for class C shares after 2 yrs. It also shows the 90M shares being "retired" as well as some others being retired. If you do all the additions and subtractions under Item 4, it amounts to ~600M shares. One note....the PPM is attempting to raise $1M. Class C shares have a par value of $2.50 and a conversion ratio of 2500 to 1 after 2 yrs. That's a BILLION shares of common stock. I hope VGPR has that many. I know they are currently authorized for 2B and have only 1.5B outstanding. Hopefully there is another half billion of treasury stock that VGPR is holding in that 1.5B. One thing is certain...when computing the price per share of VGPR in 2 yrs, we will definitely be dividing the value of the company by 2 billion rather than 1 billion. If the business plan comes to fruition, it won't matter though....we are headed much higher.
Silverfox...I will answer as best I can. You are probably far more versed on the nuances of the SEC than I am. I first heard about PPM in a VGPR PR. Check out the press release of 7/18/14 "VGPR to increase production of biochar. It's on yahoo finance if you can't find it on here. In it, MM stated VGPR is seeking to raise 1M thru a private placement memorandum with private investors and financial institutions. He mentions the production of biochar must be able to keep up with demand as the reason. Then in the conf. call, he gave more details. At around the 29 minute mark, if memory serves me, he spells out that the $$ raised by the PPM will be used to satisfy obligations with our joint venture partner(biocoal/ATP), and to increase biochar production. Details included a 10k minimun purchase, shares have a $2.50 par value, holding period of 2 yrs. and a 2500 to 1 conversion rate after 2 yrs. They will be "PREFERRED CLASS C" shares. VGPR will then have common, preferred A, B, and C shares. There are currently no C shares outstanding as of 6/30/14. Your other point about shares not being registered, I can only tell you to check out the just released financials for 6/30 ended qtr. ITEM 4...ISSUANCE HISTORY..." all shares issued by the company were restricted and included the legend that the shares had not been registered under the securities act". My personal feeling is that if they successfully get production going from the biocoal plant, all of the above won't matter. VGPR will be on its way. If they need a PPM to make that happen, so be it. I also hope a JV is on the way with Biochar Now, so we can make more than just the sales commission.
Good Luck Silverfox
Silverfox....Not sure I understand your question. I didn't mention a "regulation D" in my post. I'll be glad to reply if I understand your question.
T, I agree that this biochar "testing" is probably test marketing by a national chain (farm supply or home improvement chain). It can't be a regional or smaller customer because of shipping to east and west and in large quantities. They are probably testing demand, pricing, sizes, packaging and all. Most of the big players have certain stores that they test market in (right demographics, etc.). There is too much research out there already for them to be just seeing if it works on the plants.
Do you agree that there seems to be some sort of joint venture with Biochar Now in the making? MM said some of the PPM $$ would be used to expand biochar production. Currently we receive only a sales commission and don't own the plant. It doesn't make sense to just donate money to Biochar Now just so we can make the commission. There has to be a deal in the works IMO. Also, I received the e-mail from MM to start the process of investing in the PPM. First step is signing a Non-Disclosure agreement. But he did respond.
GLT VGPR longs
Loyal, I think most INVESTORS on here would be better served putting their shares in their "safe deposit box" and relaxing until the financials come out at the end of the first quarter of 2015 (approx 4/30/2015). If they show revenue from biocoal, that means the business plan is working and the stock is headed much higher. Some smart people I know who have a good track record for picking winners in this type of stock market told me about VGPR. They cautioned me, however, that it would be the 1st qtr. '15 before it would take off. I think the stock got a brief and unexpected pop from the whole MMJ craze to a penny and a half. That sector then fell out of favor and the shorters and flippers came in and .0025 is the result. But the basic story hasn't changed. Biochar may help VGPR, but the real money is in the biocoal, and that is a few quarters away. Revenues are the key. Shorters and flippers can't beat the constant flow of revenues coming into the company.
GLT investors
I like your math Bananax....One would think that when the company owns a 4M torrefaction machine in a building, and has almost 15M in annual sales with just the first order, that the market might easily value that company at 10M. If you divide 10M by 1B outstanding shares, you get .01 or four times the current price. That doesn't even factor in biochar. That doesn't factor in anything for other machines and other plants at other locations. That doesn't factor in additional orders for Allendale. In 2-3 years, this stock could be life-changing money for patient investors. Flippers will flip, shorters will short, but the market eventually gets it right and investors will be the real winners. You won't be measuring the price per share in pennies, nickels or dimes.
Regarding those who accuse this of being a scam....Check out Google Earth of the Allendale SC site of Collum's lumber and sawmill operation. T did some great work by posting pics of this operation a while back. The place is huge! You will see that the rail line runs directly into the plant. You can actually see ocean shipping containers and rail cars being loaded. You can see the rail line connecting to the inter-modal main rail line in nearby Allendale, which connects directly to the ports of Savannah and Charleston for shipment to Europe and beyond. Check out Collum's website for verification under "export" tab. Joseph James did his homework. Cheap wood waste from sawmill and logging operation, locate plant on their property to eliminate the main cost...transporting it to the torrefaction machine. Locate it all on the main rail line with direct access to the Ports. The company building the machine has been in business in Spartanburg for over 40 yrs. Collum's lumber is a 4th generation business there for over 100 yrs. These are not fly by night idiots with no clue. They are established businesses with outstanding reputations. Joseph James and James Gaspard are proven businessmen who have built companies from scratch. Both appeared with MM on the radio conf. call. Are they in on the "scam" too? The USDA approved the grant from the sorghum association for 275k. Is the Government involved in the "scam" too? Someone went to an incredible amount of detail to dream all this up. It would be a conspiracy theory worthy of Oliver Stone.
GLT Investors!
T...I appreciate the work you do on this board. You are one of the posters that I count on for information and perspective. I don't have any intimate knowledge of the company or any of the players. I haven't sold any VGPR and don't plan to, but I am debating internally about adding more. I'm not an impatient investor, I just want to make sure I have the story straight. And I'm trying to find out if the company can raise the cash to pull it off. I think that has always been the problem in the past. Molen seems to have a plan for addressing the problems. I just hope he can pull it off. Communicating with investors in a constructive, timely manner, with clarity, would certainly help all of us.
GLTY, and thanks for all you do here.
Revisiting the conference call of August 3rd.....
Molen discussed the Private Placement and how it was necessary to "meet our obligations with our joint venture partner" and to expand biochar production. Our obligation on the biocoal plant is $2M. Areas of concern: The plant is scheduled to open early '15 at the latest, and Molen is still trying to raise money. Agri-Tech is apparently ready and waiting. Financing for the plant does not seem secured even at this late date. Biochar Now and Gaspard need to expand capacity for VGPR orders and are needing funds from VGPR to do so. Molen said they sat down and "cut a deal". What is the deal and is Molen able to raise cash to pay for it? I e-mailed both the company and Molen himself over a week ago about how I could participate in the private placement and have heard nothing. Is it sold out or not even started? He stated in the call the new Marketing hire should be announced by mid week the next week, and still nothing. He said they should have the purchase order from the South American company for biochar the following week. Did it arrive? They were supposed to acquire an export company, did that ever happen?
I don't think this is a scam. I am long VGPR. But I do worry. Primarily because of two reasons. #1) Michael Molen, #2) lack of cash to make it happen. I love the products and technologies; Joseph James and James Gaspard are the real deal as businessmen; Demand seems unrelenting for the products. Will it all happen? Molen needs to answer his e-mails.....
GLTA
Hey!...look who's back! Just like at the bottom of the tequilla bottle, our little worm is back! Welcome back SHORTY!
Did you ever receive anything from Michael Molen regarding the PPM?
Hear me out, please hear me out. I agree with much of what you said, but have a different take on one thing. ATP (our JV partner) does not sell his own production. Someone correct me if I'm wrong, but I believe ATP is in the business of selling torrefaction machines, designed with the exclusive NC state technology. ATP doesn't have a manufacturing facility for biocoal either. They partnered with VGPR to get into that business. Joseph James didn't have the money either or he would have done it himself. With VGPR, he has someone with contacts to sell the biocoal(Molen) and biochar (Molen and Gaspard) that his machines can produce. ATP is not selling biocoal to their own customers, they don't have any biocoal. They sell the machines that make it. My only concern is "who are they selling them to"?
The Spartanburg SC manufacturer of the torrefaction machines is only a metal fabrication and machine manufacturer. They build ATP's machines. ATP can't do that either. They build to your specs. They cannot build a machine for someone that uses the patented technology, and they aren't in the biocoal/char business.
Lastly, I agree that we are simply a reseller of biochar, and are in bad need of some control over production. If Gaspard can sell all he can make thru his own company (BIOCHAR NOW), we will be without product because his customers will get preference because he makes more $$ that way. That's why Ive been saying I feel a JV of some type is in our future with Biochar Now. It makes sense...ATP has the machine, Molen has the sales contacts and Gaspard runs production. The JV plant can package it either way, depending on the order. Biochar Now biochar or Vega Biocahr.....the only difference is the plastic bag its put in. Molen mentioned in the CC that some of the $$ from the PPM would be going to expand production of biochar. Why would he put borrowed $$ into a plant that someone else owns?
You are correct...VGPR has great technologies, a good leadership team and strong demand for their products.....but it's gonna take a lot of money to get from here to their. Just my opinion.
GLTA
Good point Mac143. I have felt that down the road, some large company would be willing to pay a high premium for either of VGPR's technologies. One reason they may have to acquire rather than compete is that Joe James and his company Agri-Tech (our JV partner) have an EXCLUSIVE LICENSE to use the technology developed and PATENTED by N.C. State Univ. It is the best out there. The same with the biochar. Biochar Now has the best product on the market and several larger corps. might be interested. To name names...Monsanto, Scotts, any of the large fertilizer players like Agrium or Potash etc. Even thought we don't manufacture it, that exclusive marketing agreement has to be part of any deal. On the biocoal side, lg. timber corps. like Weyerhauser, Rayonier, Plum Creek (the largest private land owner in the US) as well as any large energy company (too numerous to mention). The cost to acquire VGPR even at a very high multiple would be peanuts for any large energy company. They spend that much on lunch. As VGPR successfully implements its business plan, the price/share will rise drastically, but don't be surprised to see one of the big boys "make you an offer you can't refuse" for your shares.
GLTA
Hello Jaxon, thanks for the reply. I understand that vega biochar is a subsidiary of VGPR. However, when we purchased the legal hemp and MJ division of Biochar Now, we didn't buy a manufacturing facility...we bought the rights to market their biochar now product with our label on it, and we receive a favorable sales commission. Biochar Now (Gaspard's company) still makes the manufacturer's profit on Vega Biochar's sales. Vega Biochar can't manufacture anything, we don't have a plant. There is nothing wrong with the arrangement, but if I were Mr. Molen, I wouldn't stick money I don't have into a mfg. plant I don't own....unless some additional consideration was received. That's why I wondered about the comment on the CC by Molen that some of the $$ raised would be used to expand production. In who's plant? Biochar Now's or are we building one?
GLTA
I'm not planning to sell VGPR common shares in order to participate in the private placement ( if I am permitted to do so). I would just make my next investment into VGPR in that way because it seems a great way to accumulate shares. Shareholders of VGPR common shares will not be hurt in my view by the PPM. Any pain will be temporary if at all. The PPM is vital in my view to getting the Allendale biocoal plant online and to expand capacity for the biochar side of the business. All VGPR shareholders, both common and class "C", will benefit from those developments.
P.S.: It's interesting that MM mentioned in the CC that some of the funds were to be used to expand biochar production. Since we are currently just a re-seller of Gaspard's company biochar, why would we need to invest funds instead of Gaspard to expand his plant? Is it possible a new joint venture is in our futures?
GLTA
Thank you Stock Missile for helping with the PPM info. Please share when it arrives. From what I know, it seems like a really good way to accumulate shares if you believe in the future of VGPR....as I do.
GLTA
Can anyone here tell me how to participate in the private placement? I e-mailed the company two days ago, and sent an additional e-mail to Michael Molen yesterday. I have not yet received any response. I'm not trying to alarm anyone or be critical, I am long VGPR. I just wanted details about the PPM and how to become an "accredited" investor.
GLTA