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Yes it's the most recent.....with NO pix(?)....hmmmmm....glta
How bout this for a scenario......the Japanese bank comes in first......the World bank comes in later on....with CC's contracts......then we start getting AU numbers.....okay...call me a pumper....glta
I've never said a birdcage.....but since you mention it.....wonder how many volts it takes to power this plant?.....wait....can the plant run on GKG?.....glta
I ask for pictures of the NEW COMPLETED 20,000 sq ft facility that VSPC announced in the most recent pr.....thx but I also sent Jan an email.....can wait to see that processing taking place....by the way, when you go to the Viaspace website.....why does that GKG presentation stop at page 32?......glta....OAMOT
Just sent Jan an email....wanted to see a pic of the NEW COMPLETED 20.000 sq ft facilty in China.....exciting....glta
Anyone have a picture of the NEW 20,000 sq ft plant?.....glta
I mean the completed NEW 20,000 sq ft plant.....
Decrease in Revenue Experienced in the Third Quarter of 2009 and Year to Date 2009
Sales of framed artwork were down 46% for the three months ended September 30, 2009 and down 42% for the nine months ended September 30, 2009 versus the comparable period s of 2008. We expect 2009 framed artwork revenue to be lower than 2008 due to the global economic conditions which have resulted in lower consumer spending.
Change from Private to Public Company
Management understands that changing from a private to a public company will require additional legal, accounting and other public company costs not required for a private company including the costs of Sarbanes-Oxley 404 requirements. We estimate these additional public company costs will be approximately $400,000 per year.
GLTA
A great post from VGREF.....
Posted by: horse_shoe Date: Thursday, January 28, 2010 8:24:05 PM
In reply to: None Post # of 18
Is this a scam?....
Viaspace buys rights for biofuel grass in China
October 28, 2008 - by Emma Ritch, Cleantech Group
Email this pageprint reprint. share
Similar stories
Viaspace, Antig to collaborate on fuel cells
Scientists make bioethanol from olive waste
More money for your biofuel co.? Sure!
Fuel Frontiers, Shaw to build coal to liquid plant
Protonex acquires Mesoscopic Devices of Colorado
.$16 million acquisition of Inter-Pacific lets Viaspace produce and sell fast-growing hybrid grass for biofuel feedstocks.
Pasadena, Calif.-based Viaspace (OTC: VSPC) said today it’s paying $16 million to acquire Inter-Pacific Arts, a developer of hybrid grass for biofuels in China.
The transaction, a combination of stock and $4.8 million in cash, is expected to go through within 240 days of the agreement dated Oct. 21, the company reported in its 8-K filing this week.
Viaspace commercializes technologies such as methanol fuel cells developed by government researchers and agencies, including NASA and the Department of Defense (see Viaspace, Antig to collaborate on fuel cells).
The acquisition includes Inter-Pacific Arts, based in the British Virgin Islands, and Guangzhou Inter-Pacific Arts, based in China's Guangdong province.
The company has a license for its commercial farming operations of a high-yield grass for biofuels and livestock feed in China. The specialty China Giant King Grass is expected to be used for cellulosic ethanol, methanol, biocrude and green gasoline.
Inter-Pacific says it had net income of $1.2 million and revenue of $5 million in 2007.
Viaspace said it expects the high-yield grass business to generate $20 million in revenue in the next two years.
Inter-Pacific's main operations are manufacturing and distributing commercial products, but Viaspace said it plans to use profits from that venture to grow the hybrid-grass sector of Inter-Pacific.
In 2006, Viaspace raised private financing of up to $23.8 million from Cornell Capital.
Since then, it's made several moves in cleantech through subsidiaries and distribution agreements.
Viaspace subsidiary Ionfinity has signed $1.5 million in two-year contracts for various sensory technologies with the U.S. Army and the U.S. Navy.
In October, Taiwan's Antig and Viaspace subsidiary Direct Methanol Fuel Cell agreed to work together to develop fuel cells.
In July, Viaspace agreed to globally distribute the rechargeable lithium-ion batteries of China’s HYB Battery for portable electronic applications, a $6 billion market sector.
They are EXPECTING to generate $20 million in the next 2 years....dated in OCTOBER.....
GLTA
Is this a scam?....
Viaspace buys rights for biofuel grass in China
October 28, 2008 - by Emma Ritch, Cleantech Group
Email this pageprint reprint. share
Similar stories
Viaspace, Antig to collaborate on fuel cells
Scientists make bioethanol from olive waste
More money for your biofuel co.? Sure!
Fuel Frontiers, Shaw to build coal to liquid plant
Protonex acquires Mesoscopic Devices of Colorado
.$16 million acquisition of Inter-Pacific lets Viaspace produce and sell fast-growing hybrid grass for biofuel feedstocks.
Pasadena, Calif.-based Viaspace (OTC: VSPC) said today it’s paying $16 million to acquire Inter-Pacific Arts, a developer of hybrid grass for biofuels in China.
The transaction, a combination of stock and $4.8 million in cash, is expected to go through within 240 days of the agreement dated Oct. 21, the company reported in its 8-K filing this week.
Viaspace commercializes technologies such as methanol fuel cells developed by government researchers and agencies, including NASA and the Department of Defense (see Viaspace, Antig to collaborate on fuel cells).
The acquisition includes Inter-Pacific Arts, based in the British Virgin Islands, and Guangzhou Inter-Pacific Arts, based in China's Guangdong province.
The company has a license for its commercial farming operations of a high-yield grass for biofuels and livestock feed in China. The specialty China Giant King Grass is expected to be used for cellulosic ethanol, methanol, biocrude and green gasoline.
Inter-Pacific says it had net income of $1.2 million and revenue of $5 million in 2007.
Viaspace said it expects the high-yield grass business to generate $20 million in revenue in the next two years.
Inter-Pacific's main operations are manufacturing and distributing commercial products, but Viaspace said it plans to use profits from that venture to grow the hybrid-grass sector of Inter-Pacific.
In 2006, Viaspace raised private financing of up to $23.8 million from Cornell Capital.
Since then, it's made several moves in cleantech through subsidiaries and distribution agreements.
Viaspace subsidiary Ionfinity has signed $1.5 million in two-year contracts for various sensory technologies with the U.S. Army and the U.S. Navy.
In October, Taiwan's Antig and Viaspace subsidiary Direct Methanol Fuel Cell agreed to work together to develop fuel cells.
In July, Viaspace agreed to globally distribute the rechargeable lithium-ion batteries of China’s HYB Battery for portable electronic applications, a $6 billion market sector.
They are EXPECTING to generate $20 million in the next 2 years....dated in OCTOBER.....
Ok...you said you had all kinds of time....I just ask.....how do you know you have all kinds of time?....if that's not what you were saying....oh well...never mind....glta
can wait to see the NEW 20,000 sq ft plant
Please provide a picture of the 20,000 sq ft production processing facilty.....and I know that the art business was a potential....and now it is a reality....oh wait...they haven't had the second closing...oh I know the fuzzy math scam....from the filing.....
IPA China owes $19,000 to an employee of IPA China at September 30, 2009 which is shown as a Related Party Payable in the accompanying consolidated balance sheets. In addition, the Company owes $25,000 to its Parent Company at September 30, 2009 related to expenses paid by Parent Company on behalf of the Company.
Framed Artwork Segment
Of the total amounts, the framed artwork segment had decreased income from operations of $427,000 from 2008 to 2009.
Risks related to our framed art business
We are heavily dependent on one major customer for our revenues
For the nine months ended September 30, 2009, sales to one customer, Hobby Lobby Stores, comprised 75% of our total revenues. We believe this concentration of sales to a small number of customers will continue in the near future. We do not have a long-term contract with Hobby Lobby Stores. A loss of Hobby Lobby Stores as a customer or even a dramatic reduction in sales to Hobby Lobby Stores could significantly reduce our future revenues.
We may not be able to compete with existing or potential competitors in our framed art business
The visual content and art framing businesses are highly competitive. We believe competitive factors include quality of images, branding, reputation, service, breadth of content, depth of content, technology, pricing, and sales and marketing. Overall, many of our competitors are significantly larger, have far greater resources, a notably larger customer base, a far greater content provider base, significantly more technology infrastructure, and more well-recognized names in the marketplace than we do, all of which may make it difficult for us to compete effectively.
The value paid by VIASPACE and VGE for the acquisition of IPA BVI and IPA China was $15,832,000. The IPA BVI and IPA China net assets acquired totaled $3,003,000. The excess of value paid for the acquisition in excess of net assets acquired is recorded on the balance sheet of VIASPACE and was assigned to: grass license - $507,000 and goodwill - $12,322,000.
GLTA
How do you know you have all kinds of time?.....glta
Potential is all they ever mean....and that's all that is ever discussed when it comes to VSPC....except for the art of course....glta
I didn't predict a nickel....I said running towards a nickel...then by it....balance sheet figures(?)....what do you do...look at balance sheets.....on pinks....lol.....I'm a trader....I'm holding this longer than I normally hold a stock.....CC's are for real....if you can't see that....I can't show you.......Bloomberg just had a an article about CC's....google CC's....SL comes up frequently.....I ain't here for AU or diamonds....CC's baby.....if you can't see it....well....you can't see it.....traders don't look at balance sheets....investors do.....glta
Any guesses how low this continues to drop?....I was busy when the fluff pr come out...would liked to have had some of that 30% rise or so....oh well...should be done with the gig in FL soon....I'll hit this thing when VGREF begins trading....or doesn't begin........glta
Thx.....I read that article in Bloomberg Markets Jan 2010 edition...and JP Morgan is pushing heavy on trading CC's here...so is Goldman Sachs all for Cap and Trade....not sure it will happen here...frankly I hope it doesn't....but it's all about feel good.....and make the "EVIL" corporations feel bad....for once I am just trying to get ahead of the money.... so to speak....and hey....SGCP goes to a dime.....I think it goes much higher...I'm fine with that...also...I heard the same guy that has the $1.77 target on yahoo for SGCP....had a $1.50 target on another stock that was about a dime or so....it hit $1.55...I know I posted about that a few weeks back....I can't remember the stock right....and besides....it's Michelob time....but I'll repost that HYPE later....glta
Pls refer to VSPC post # 5704.....it's an invite to all to participate.....I stand behind my previous brillant posting....seems like VSPC is heading right back where it was Monday pm.....glta
Look at what Wall Street did with worthless(or not worth as much) mortgages...this is the next craze
I know this isn't trading in the US....but US companies are already participating....heck, I remember John Edwards(the Breck girl), being interviewed when he was running for president and the reporter was blasting him for building his HUGE NC mansion, and the Breck girl said he was buying carbon offsets on the market.....
The thing is....it's all targeting the poor countries ....it's all feel good.....
When SGCP gets theirs(ours).....we'll all feel good...glta
The survey on the VGREF board is 100%.....that VGREF doesn't begin trading until after 2/15......
Well....my advice is to be watchful....I am not sure if the company is stalling and hoping for a contract....or if they really have a bite.....my guess is that IF they have NO contracts right now........VGREF won't begin trading until they do....just my humble opinion...we shall see...glta
I think global warming is the biggest hoax.....and I'm going to make a ton.....I'm such a CAPITALIST PIG....imho
You can't find article on CC's without the author mentioning SL....
The proposed carbon credit
To begin with, the carbon credit is not a commodity like rice in which people could trade in competition with others or to the exclusion of all else. The concept is one of indirect conservation which would minimize the greenhouse effect in the atmosphere and thus prevent climate change. Readers may recall that recently I wrote about the carbon cycle in nature and how any shift of equilibrium would shift the balance and lead to excess accumulation of carbon in the atmosphere. This is one direct consequence of severe deforestation and other activities which are carried out by man through, excessive logging, shifting method of brush and burn cultivation, mining, the extension of human settlements, environmental degradation, (Bormeh) etc. All the above result in large green losses and the pouring into the atmosphere of pollutants. The reduced amount of green vegetation becomes incapable of absorbing a the carbon and other noxious compounds that are poured into the atmosphere eventually leading to the green house effect that I described in a previous article.
There is a scheme under consideration which is an inducement for us to protect our environment and preserve our forests; the more forests that we reserve, the higher the amount of carbon compounds that are absorbed. The quantum of financial compensation is therefore directly related to the estimated quantity of carbon that would be absorbed. We already have one of the few remaining rainforests in the sub region and that is the Gola Forest in the south-eastern part of the country. Part of this unique forest extends into neighbouring Liberia. Readers may recall that recently President Ernest Bai Koroma and President Ellen Johnson-Sirleaf of Liberia signed a protocol establishing the area as a Peace Park. President Koroma also plans to declare the rest of Gola as a National Park. At the moment we have a Gola Forest Conservation Programme which is managed jointly by the government of Sierra Leone, the Conservation Society of Sierra Leone CSSL, the Royal Society for the Protection of Birds (RSPB) in the United Kingdom and the communities of the seven chiefdoms surrounding Gola. The forest is preserved in perpetuity; the communities receive compensation for loss of income by not allowing logging, mining, farming and other causes of deforestation. There is to be a Trust Fund from which support for the Programme and the development needs of the communities for example education, health welfare etc. would be met. Under the carbon exchange scheme as outlined above the government of Sierra Leone could receive financial compensation which could be poured into the project.
GLTA
Only my wife excites me more......
Green Giant Venture Fund
Africa: 1
Aforestation project of 42,500 acres in Sierra Leone
Aforestation as Renewable source of Wood for Industrial use: The objective of the project activity is the Aforestation of 42,500 acres of Kiri Tree: Japanese Empress Tree, Paulownia located on degraded lands in the ecological zone of Sudan Savannah. The project looks forward to recover degraded land, and develop sustainable economic activities, as (4-7 year) pulp, paper, (8 year) lightweight hardwood lumber, clean coal production, Biofuel production, wood harvesting and improving the community’s standard of living. The project will benefice more than 10 villages and 3500 people in annexes of this community and is conceived using easy-to-replicate technologies and promoting the intensive use of local labor, assuring that the biggest part of the benefits will remain in the community. The project will reduces the risk of negative impacts on biodiversity and increasing the success possibilities of the proposed project activity. Proposed project activities:The establishment of plantations as a renewable source of wood supplies for energy to meet the industrial needs is expected to result in twofold benefits: (i) generation of carbon stocks and of GHG removals by sinks additional to those that would occur in the absence of such plantations, and (ii) substitution of sustainable sources of biomass in place of fossil fuels and non-renewable biomass, which contribute to GHG emissions in Africa.
Estimated Carbon Credit value 410,000,000 USD
Estimated timber harvest value 700,000,000 USD
GLTA
Thx....nothing has happened to me.....can't wait til this thing begins trading.....I didn't want to miss it....if we ever get news....I'll post more sticky's.....glta
Is it just going to drift down?.....anyone know when VGREF is going to open for trade?.....that $3.00 a share would be sweet.....that may be why everyone sold here.....to load up on the good stuff.....glta
Ho Ho Ho.....Green Giant....
Green Giant Venture Fund
Green Giant Venture Fund develops and implements greenhouse gas reduction projects, for the purpose of generating Carbon Credits to be sold as a means of secondary revenue by either making a market or listing on the European Climate Exchange. We facilitate this in accordance with the Kyoto Protocol and UNFCCC under voluntary and emerging regulatory programs.
As a project developer Green Giant Venture Fund works with clients to structure, finance, build, and operate emission reduction projects. We provide Capital assistance through our exclusive Carbon Finance option (FSCCP) . We facilitate the approval process: including CDM methodology and development, JI host country approval, Carbon Credit Project Certification ,Carbon Credits and CER's.
Our focus is Afforestation , Reforestation , and Reduced Emissions from Deforestation and Degradation (REDD)/ Forestry Preservation projects in Brazil , Australia and Africa. In North America and Canada we are reviewing feasibility studies for the following processes and technologies: Algae-Bio fuel-protein , Biomedical waste-fertilizer , waste-alternative Bio fuel catalyst. As a private equity fund (GGVF) invests in Carbon Credit eligible companies , processes and technologies throughout the world.
glta
Well at least you guys got an update.....lots of expectations......management EXPECTED to stay in place.....
VGREF EXPECTED to begin trading......sharehoders EXPECTED to benefit....
Viaspace Inc EXPECTS to soon complete negotiations....
OK Carl.....seems like the longs....are getting short on patience.....git er done.......glta
btw.....are you guys EXPECTING a BIG deal in the near future with GKG?
I agree global warming is a hoax....but trading Carbon Credits is a reality.....read my brillant post about Carbon Capitalist.....glta
Well said.....SGCP has land to leverage....and they are doing that very well....remember....Green Giant's reputation is at stake....SGCP will reap the benefits.....want some DD...check them out.....
Company Profile
>Print page
Green Giant Venture Fund
Green Giant Venture Fund develops and implements greenhouse gas reduction projects, for the purpose of generating Carbon Credits to be sold as a means of secondary revenue by either making a market or listing on the European Climate Exchange. We facilitate this in accordance with the Kyoto Protocol and UNFCCC under voluntary and emerging regulatory programs.
As a project developer Green Giant Venture Fund works with clients to structure, finance, build, and operate emission reduction projects. We provide Capital assistance through our exclusive Carbon Finance option (FSCCP) . We facilitate the approval process: including CDM methodology and development, JI host country approval, Carbon Credit Project Certification ,Carbon Credits and CER's.
Our focus is Afforestation , Reforestation , and Reduced Emissions from Deforestation and Degradation (REDD)/ Forestry Preservation projects in Brazil , Australia and Africa. In North America and Canada we are reviewing feasibility studies for the following processes and technologies: Algae-Bio fuel-protein , Biomedical waste-fertilizer , waste-alternative Bio fuel catalyst. As a private equity fund (GGVF) invests in Carbon Credit eligible companies , processes and technologies throughout the world.
Country of origin
Brazil
Carbon market experience
Activity 1
SL-1:Aforestation project of 42,500 acres in Sierra Leone
Aforestation as Renewable source of Wood for Industrial use: The objective of the project activity is the Aforestation of 42,500 acres of Kiri Tree: Japanese Empress Tree, Paulownia located on degraded lands in the ecological zone of Sudan Savannah. The project looks forward to recover degraded land, and develop sustainable economic activities, as (4-7 year) pulp, paper, (8 year) lightweight hardwood lumber, clean coal production, Biofuel production, wood harvesting and improving the community’s standard of living. The project will benefice more than 10 villages and 3500 people in annexes of this community and is conceived using easy-to-replicate technologies and promoting the intensive use of local labor, assuring that the biggest part of the benefits will remain in the community. The project will reduces the risk of negative impacts on biodiversity and increasing the success possibilities of the proposed project activity. Proposed project activities:The establishment of plantations as a renewable source of wood supplies for energy to meet the industrial needs is expected to result in twofold benefits: (i) generation of carbon stocks and of GHG removals by sinks additional to those that would occur in the absence of such plantations, and (ii) substitution of sustainable sources of biomass in place of fossil fuels and non-renewable biomass, which contribute to GHG emissions in Africa.
http://www.greengiantventurefund.com/about_us
Activity 2
Angra: 3 (REDD) Pilot Project
Voss 245 hectare reducing emissions from deforestation and degradation project. The first (REDD) pilot project in the city of Angra certified by UNESCO as a Biosphere . This region is protected by the local government as a reserve. The additionality of the REDD project will create double protection for this part of the Matatlantica rain forest. This property will also contain a Green House (Estufa) that will provide native Matatlanitc species to previously degraded areas in Angra,Parati, and Mangaratiba.
http://www.greengiantventurefund.com/about_us
Activity 3
SL-2 :Aforestation project of 70,000 hectares in Guinea Africa
Aforestation project of 70,000 hectares in Guinea Africa Aforestation as Renewable source of Wood for Industrial use: The objective of the project activity is the Aforestation of 70,000 acres of Kiri Tree: Japanese Empress Tree, Paulownia located on degraded lands in the ecological zone of Guinea Savannah. Kiri plantations are established in an area of 70,000 hectares. The land use under the plantations is expected to cover a 50 years period, with the first harvest taking place after 3-4 years, followed by two successive periods of 7-years rotations through coppicing. Taking into account the annual planting over the first 7-year period starting from 2010, the project will have duration of approximately 50 years (2010-2060). The project adopts a single 50-year crediting period and uses the tCER approach to account for the net anthropogenic GHG removals by sinks from the project.
Activity 4
Angra 1:Reforestation with native species of the Atlantic Rainforest
Reforestation with native species of the Atlantic Rainforest Various areas totaling 90,000 hectares of the Atlantic Rainforest that has been occupied by agriculture or other degrading activities. To restore the previous condition that most closely matches the original landscape. In this sense make use of the techniques and management systems that can fit the recovery, especially since they offer Atlantic Forest area and potential sequestration and accumulation of carbon. LIST OF SPECIES TO BE USED Common Name Scientific Name Quantities Chandelier Erythrina speciosa 4000 Jerivá Syagrus romanzoffiana 4000 Inga edulis Inga 5000 Yellow Ipe Tabebuia chrysotricha 5000 False Barbatimão 5500 Cassia leptophylla Pink Tabebuia Ipe 3500 Pterocarpus violaceus Aldrago 4000 Mirindiba Lafoensia glyptocarpa 3500 Embauba Cecropia pachystachya 5000 Embauba silver Cecropia hololeuca 4000 Euterpe edulis Juçara 5000 Tibouchina granulosa Quaresmeira 4000 Slinker Senna macranthera 5500 Bico-Depato Rosewood Machaerium aculeatum 3500 Pata de vaca Bauhinia forficata 5000 Caesalpiniaceae Caesalpinia DC winter periods. 3500
Activity 5
Angra 2:REFORESTATION PROJECT AND RECOVERY OF DEGRADED AREA IN ANGRA
REFORESTATION PROJECT AND RECOVERY OF DEGRADED AREA IN ANGRA The area chosen to be awarded the reforestation project is the hill of Alto da Ribeira, which has been awarded the Green Belt project of the Municipal Environment. The Green Belt project was an initiative to help stem the growth of the slopes of the city, where one is built around fences with barbed wire, which marks the beginning of a conservation area. Today the area is highly degraded, its surface horizon was completely lost in the erosion that occurred on site. It was also observed in field surveys of the practice of burning is likely to burn garbage that may be played on site, a further indication of soil acidity. 1 - Completion of a reforestation project for the DAR and Environmental Education and its approval by the board of Environment of the City; 2 - Payment of ART-Technical Responsibility Certificate; 3 - Purchase and supply of inputs for soil preparation and planting; 4 - Recruitment of team work; 5 - Monitoring and technical supervision of services of project implementation; 6 - Preparation of detailed technical report at the end of the services provided for the accountability of the contractor's services to the MP and other agencies have concluded the TAC. Will be reflected in the proposed project activity and maintenance of the planting area.
Activity 6
A.P.M Master Project
Reforestation and Reduced Emissions from Deforestation and Degradation (REDD) Forestry Preservation project in the state of Rio de Janiero, Brazil This Master project consists of a total land area over 378,000 hectares. Green Giant Venture Fund currently retains exclusive rights to develop this project from the local Secretary of Agriculture. The project will be approved by IBAMA (www.ibama.gov.br) in the final stages prior to UNFCCC submission. Currently there are 8 individual projects underdevelopment with a total of 23 projects planned in total. The focus of this project is to improve social and economic development in the regions by using native species that have fast growth, and high biomass production.
Countries of operation
Brazil, Australia, Africa,Canada
Ok....one question at a time...the GOLD is in the ground...the CC money is coming REAL soon(imho)....I hope you read my brillant post about Carbon Capitalist....how are the dredges paid for?....we just got funding....why do they say they have dredges one time then they say they are on the way....pls site an example...Are Doug and John their real names?.....do you want their number as well?....Are they the same person?....how can (a)they be the same person?....a they is two people...has anyone actually seen the two guys in person?.....I'm sure someone has seen both of them....imho.....2 billion...why not 4 billion....that would require SH approval....are the natives real or actors?.....why do you call them natives?.....you are implying that they are real by your question....
Hope that helps....glta
SGCP will be running towards a nickel soon....CC contract coming soon.....and I also wanted to say what a pleasure it is to read such insightful post here....very direct and to the point....especially as it relates to SGCP......glta
Front page.......we are number 5.....we will be number 1.....
Rank Name Links
1. CPRK Party Talk room
2. Imagine Media Ltd (IMLE)
3. Pans Labyrinth
4. Japan Air (JALSY)
5. Viaspace Green Energy (VGREF)
I can't believe Japan Air is beating us out.....glta....even the pumpers....
VGREF....number 5 on IHUB new boards......that means one thing.......contracts coming.....glta
For those that want a great read....the January issue of Bloomberg Markets has a great article on Carbon Credits....now they interview JP Morgan's Blythe Masters....and her take is that banks will play a crucial role in the trading of derivatives....
estimates are a $2 trillion market.....and SGCP is right up the CC alley......A MUST READ.....
btw....global warming is a hoax(imho)....trading CC's is a reality....Green Giant is trading the future.....glta
Carbon Capitalists Warming to Climate Market Using Derivatives
Dec. 4 (Bloomberg) -- Across Uganda, thousands of women warm supper over new, $8 orange-painted stoves. The clay-and- metal pots burn about two-thirds the charcoal of the open-fire cooking typical of East Africa, where forests are being chopped down in the struggle to feed the region’s 125 million people.
Four thousand miles away, at the Charles Hurst Land Rover dealership in southwest London, a Range Rover Vogue sells for 90,000 pounds ($151,000). A blue windshield sticker proclaims that the gasoline-powered truck’s first 45,000 miles (72,421 kilometers) will be carbon neutral.
That’s because Land Rover, official purveyor of 4x4s to Queen Elizabeth II, is helping Ugandans cut their greenhouse gas emissions with those new stoves.
These two worlds came together in the offices of Blythe Masters at JPMorgan Chase & Co. Masters, 40, oversees the New York bank’s environmental businesses as the firm’s global head of commodities. JPMorgan brokered a deal in 2007 for Land Rover to buy carbon credits from ClimateCare, an Oxford, England-based group that develops energy-efficiency projects around the world. Land Rover, now owned by Mumbai-based Tata Motors Ltd., is using the credits to offset some of the CO2 emissions produced by its vehicles.
For Wall Street, these kinds of voluntary carbon deals are just a dress rehearsal for the day when the U.S. develops a mandatory trading program for greenhouse gas emissions. JPMorgan, Goldman Sachs Group Inc. and Morgan Stanley will be watching closely as 192 nations gather in Copenhagen next week to try to forge a new climate-change treaty that would, for the first time, include the U.S. and China.
U.S. Cap and Trade
Those two economies are the biggest emitters of CO2, the most ubiquitous of the gases found to cause global warming. The Kyoto Protocol, whose emissions targets will expire in 2012, spawned a carbon-trading system in Europe that the banks hope will be replicated in the U.S.
The U.S. Senate is debating a clean-energy bill that would introduce cap and trade for U.S. emissions. A similar bill passed the House of Representatives in June. The plan would transform U.S. industry by forcing the biggest companies -- such as utilities, oil and gas drillers and cement makers -- to calculate the amounts of carbon dioxide and other greenhouse gases they emit and then pay for them.
Estimates of the potential size of the U.S. cap-and-trade market range from $300 billion to $2 trillion.
Banks Moving In
Banks intend to become the intermediaries in this fledgling market. Although U.S. carbon legislation may not pass for a year or more, Wall Street has already spent hundreds of millions of dollars hiring lobbyists and making deals with companies that can supply them with “carbon offsets” to sell to clients.
JPMorgan, for instance, purchased ClimateCare in early 2008 for an undisclosed sum. This month, it paid $210 million for Eco-Securities Group Plc, the biggest developer of projects used to generate credits offsetting government-regulated carbon emissions. Financial institutions have also been investing in alternative energy, such as wind and solar power, and lending to clean-technology entrepreneurs.
The banks are preparing to do with carbon what they’ve done before: design and market derivatives contracts that will help client companies hedge their price risk over the long term. They’re also ready to sell carbon-related financial products to outside investors.
Masters says banks must be allowed to lead the way if a mandatory carbon-trading system is going to help save the planet at the lowest possible cost. And derivatives related to carbon must be part of the mix, she says. Derivatives are securities whose value is derived from the value of an underlying commodity -- in this case, CO2 and other greenhouse gases.
‘Heavy Involvement’
“This requires a massive redirection of capital,” Masters says. “You can’t have a successful climate policy without the heavy, heavy involvement of financial institutions.”
As a young London banker in the early 1990s, Masters was part of JPMorgan’s team developing ideas for transferring risk to third parties. She went on to manage credit risk for JPMorgan’s investment bank.
Among the credit derivatives that grew from the bank’s early efforts was the credit-default swap. A CDS is a contract that functions like insurance by protecting debt holders against default. In 2008, after U.S. home prices plunged, the cost of protection against subprime-mortgage bond defaults jumped. Insurer American International Group Inc., which had sold billions in CDSs, was forced into government ownership, roiling markets and helping trigger the worst global recession since the 1930s.
Lawmakers Leery
Now, that story -- and the entire role the banks played in the credit crisis -- has become central to the U.S. carbon debate. Washington lawmakers are leery of handing Wall Street anything new to trade because the bitter taste of the credit debacle lingers. And their focus is on derivatives. Along with CDSs, the most-notorious derivatives are the collateralized-debt obligations they often insured. CDOs are bundles of subprime mortgages and other debt that were sliced into tranches and sold to investors.
“People are going to be cutting up carbon futures, and we’ll be in trouble,” says Maria Cantwell, a Democratic senator from Washington state. “You can’t stay ahead of the next tool they’re going to create.”
Cantwell, 51, proposed in November that U.S. state governments be given the right to ban unregulated financial products. “The derivatives market has done so much damage to our economy and is nothing more than a very-high-stakes casino -- except that casinos have to abide by regulations,” she wrote in a press release.
Jet Fuel, Wheat
In carbon markets, many of the derivatives would be futures, options and swaps that would allow a company to lock in a price for carbon like it would for any other commodity related to its business, Masters says. Such derivatives are negotiated every day by airlines trying to guarantee future prices for jet fuel and farmers setting a future price for their wheat crop. A large, liquid market in carbon credits would serve to keep their price low, JPMorgan says.
“The reason why this is important is not because it’s going to create a new forum for us to buy and sell; it’s because the scale of what’s being contemplated here is absolutely enormous,” Masters says. “It’s going to affect your kids and my kids. The worst thing would be to introduce legislation that doesn’t achieve the environmental goal; that would be a crime of epic proportions.”
Not Convinced
Michelle Chan, a senior policy analyst in San Francisco for Friends of the Earth, isn’t convinced.
“Should we really create a new $2 trillion market when we haven’t yet finished the job of revamping and testing new financial regulation?” she asks. Chan says that, given their recent history, the banks’ ability to turn climate change into a new commodities market should be curbed.
“What we have just been woken up to in the credit crisis -- to a jarring and shocking degree -- is what happens in the real world,” she says.
Even George Soros, the billionaire hedge fund operator, says money managers would find ways to manipulate cap-and-trade markets. “The system can be gamed,” Soros, 79, remarked at a London School of Economics seminar in July. “That’s why financial types like me like it -- because there are financial opportunities.”
Masters says U.S. carbon markets should be transparent and regulated by the Commodity Futures Trading Commission. Standardized derivatives contracts -- securities that can be bought and sold by anyone -- should be traded on exchanges or centrally cleared, she says. The British-born Masters, who has an economics degree from Cambridge University, took over JPMorgan’s commodities business in 2007.
Allowances, Offsets
In a U.S. cap-and-trade market, the government would allot tradable pollution permits, called allowances, to emitters of CO2 and other greenhouse gases. The market would also likely include offsets -- credits generated by companies such as Eco-Securities that would have to demonstrate to U.S. agencies running the program that the offsets mitigate carbon pollution.
Point Carbon, an Oslo-based firm that analyzes environmental markets, estimates that by 2020 the U.S. carbon market could surge to more than $300 billion. That’s based on an assumption that the allowances, each representing a ton of carbon dioxide taken out of the atmosphere, would trade for $15. Bart Chilton, a commissioner of the CFTC, which would likely be one of the regulators of the carbon market, says it could grow as large as $2 trillion.
Goldman Building
As they wait for a U.S. cap-and-trade system to be introduced, the big banks are busy building, not trading. Goldman Sachs, for example, has fewer than 10 traders dedicated to carbon around the world.
“Carbon right now is not about sitting in front of a screen and clicking,” says Gerrit Nicholas, Goldman’s head of North American environmental commodities. “It’s all about running around talking to clients about what they can expect, how big it can be and what their risk is.”
Abyd Karmali, who heads global carbon emissions at Bank of America Merrill Lynch in London, says companies, banks and investors are all watching Congress.
“A lot of people are focused on Copenhagen, but what happens in Washington on federal cap and trade is, arguably, more important,” says Karmali, who’s president of the Carbon Markets and Investors Association, an international trade group. “This market is still in its very early stages. U.S. cap and trade would make an order of magnitude of difference.”
‘Ruinous Course’
Although U.S. President Barack Obama and his economic team support cap and trade, Washington politics could defeat it. The House bill passed in June by just seven votes, and senators on both sides of the aisle worry that imposing pollution caps on industry will result in higher energy bills for consumers at a time when U.S. unemployment tops 10 percent. Karl Rove, former president George W. Bush’s deputy chief of staff, wrote in Newsweek magazine in November that cap and trade “would put America on a ruinous course.”
Republican Senator James Inhofe of Oklahoma, who in 2006 called Nobel Prize winner and former Vice President Al Gore “full of crap” on global warming, boycotted committee meetings on the Senate bill in November.
Senate Majority Leader Harry Reid said on Nov. 18 that climate-change legislation may not be discussed until the spring, prompting speculation among others in the Senate that the bill won’t be passed before Congressional elections in 2010. The Obama administration is also driving to overhaul U.S. health care and develop proposals to push down unemployment.
House, Senate Bills
U.S. cap and trade, as currently configured in both the House and Senate bills, would mean the government sets an upper limit on emissions of seven greenhouse gases, including CO2, methane and nitrous oxide, for thousands of power plants, refineries and factories. Over time, the caps would fall, pushing emitters to adopt clean-air technology.
The government would give some pollution allowances to companies free to help them meet their caps during the first years of the program. Emitters who invest in cutting their pollution would have allowances to sell; those that don’t would have to buy.
The allowances -- similar to those that sold in Europe in mid-November for 13.5 euros ($20) -- would be tradable on an exchange or, if Congress allows it, between parties in an over- the-counter market. The credits garnered through offset projects such as the stoves in Uganda are distinct from allowances in that they may be generated on the other side of the world.
Accounting for Carbon
U.S. companies would account for carbon in long-term strategic plans, bankers say. For instance, utilities such as American Electric Power Co., which produces power from coal, would hedge the price of carbon over periods as long as a decade or more. Columbus, Ohio-based AEP is the biggest U.S. greenhouse gas emitter in the Standard & Poor’s 500, according to the London-based Carbon Disclosure Project, which collects such data. Companies like AEP would retain financial institutions to come up with customized derivatives contracts to help them manage their risk.
Derivatives contracts designed for a particular company or transaction, known as over-the-counter derivatives, are a hot- button issue in the larger debate over how the U.S. banking system should be regulated. Most CDSs and CDOs are OTC derivatives. They are created and traded privately -- not on any exchange -- and can be illiquid and opaque, says Andy Stevenson, a financial analyst for the Natural Resources Defense Council, an environmental group that supports the Senate legislation. The House cap-and-trade bill bans OTC derivatives, requiring that all carbon trading be done on exchanges.
OTC Derivatives
The bankers say such a ban would be a mistake. OTC derivatives are a $600 trillion market, much of which consists of interest-rate swaps designed to hedge risks for individual companies. “It’s a concern of ours if they limit the market,” says Pat Hemlepp, a spokesman for AEP. “It reduces the options when it comes to cap and trade, and we have told people that on the Hill. We do feel it’s best to have banks and other parties able to participate.”
The banks and companies may get their way on carbon derivatives in separate legislation now being worked out in Congress. In October, the House Financial Services Committee, headed by Representative Barney Frank, a Democrat from Massachusetts, approved a bill that would require collateral for all derivatives trading between financial institutions. And broker-dealers such as JPMorgan and Goldman Sachs would be forced to clear most derivatives contracts on regulated exchanges or through so-called swap-execution facilities. However, the new rules would not apply to end-users -- companies such as AEP that use derivatives to hedge operational risks.
Price Collar
The Senate environment bill, dubbed Kerry-Boxer for Senators John Kerry of Massachusetts and Barbara Boxer of California, the two Democrats who introduced it, contains little detail on how the cap-and-trade market would work. It sets a price floor of $11 per ton on carbon. The bill also creates a strategic reserve of allowances that the government could use to flood the market if the price of carbon shoots up.
“It will be the best-regulated market in the country,” Stevenson says. “The effort is to make all of the trading known to the regulator. That wasn’t the case in the mortgage market.”
Wall Street sees profits at every stage of the carbon- trading process. Banks would make money by helping clients manage their carbon risk, by trading carbon for their own accounts and by making loans to companies that invest to cut greenhouse gas emissions.
Chicago Climate Exchange
A clear U.S. price on carbon, determined in a large market, would help drive billions of dollars into investments to clean the air, says Richard Sandor, founder and chairman of the Chicago Climate Exchange and the Chicago Climate Futures Exchange. He is also the principal architect of the interest- rate futures market.
“What’s important is the price signal,” Sandor says. “It will stimulate inventive activity and cause behavior to change.” The Chicago Climate Exchange, the biggest U.S. voluntary greenhouse-gas-emissions trading system, trades 180,000 tons of carbon a day, up from 40,000 tons in 2006.
Over time, carbon, like other commodities, needs markets linked around the world, Goldman’s Nicholas says.
“If you believe the science and that something needs to be done about this, the market probably needs to be big,” he says. “Carbon could become an important commodity. I’m not saying it will be bigger than others, but it will be another important business for us.”
Polluters Only
Critics, including Senator Cantwell, espouse a smaller, less complex market in which pollution permits would be publicly exchanged only among fossil-fuel producers. Such a system may block progress on the environmental goals, says JPMorgan’s Masters.
“We say, ‘Let’s incentivize people to have the lowest-cost opportunities to avoid carbon emissions,’” she says.
Masters has been dealing with complex securities since she did a summer internship on JPMorgan’s London derivatives desk while she was at Cambridge. She joined the desk full time soon after graduating in 1991. The derivatives group’s task was to find ways to spread the risk of JPMorgan’s loans, partly to reduce the amount of capital it was required to hold in reserve against them.
Offloading Risk
In 1994, Exxon Corp. needed a credit line after it was threatened with a $5 billion fine for spilling 10.8 million gallons (40.9 million liters) of oil into the ocean off Alaska in 1989. Masters asked the London-based European Bank for Reconstruction and Development to take on the Exxon risk in exchange for an annual fee paid by JPMorgan, according to “Fool’s Gold,” a book by Gillian Tett (Free Press, 2009) that chronicles the history of credit derivatives at JPMorgan. The loan would remain on JPMorgan’s books and be insured by the EBRD, an international bank owned by 61 countries that supports development projects in Central Europe.
The bankers called the contract a credit-default swap.
Masters left the credit derivatives unit in 2001 to do other jobs at the bank. From 2004 to 2007, she served as chief financial officer of the investment bank. Since she took over the commodities division in 2007, its staff has almost doubled to 400 employees. The firm added Bear Energy to the division when it acquired Bear Stearns Cos. in the March 2008 heat of the credit crisis.
In December 2008, Masters led the purchase of UBS AG’s agriculture business and Canadian commodities operations. She now sits in a corner office in Bear’s former Madison Avenue tower. Outside her glass door are rows of traders making markets in metals and oil futures.
Subprime Carbon
Friends of the Earth’s Chan is working hard to prevent the banks from adding carbon to their repertoire. She titled a March FOE report “Subprime Carbon?” In testimony on Capitol Hill, she warned, “Wall Street won’t just be brokering in plain carbon derivatives -- they’ll get creative.”
Sitting in Cafe Madeleine, a small sandwich shop on a hilly stretch of California Street in San Francisco, Chan, 37, talks over coffee about her campaign. She’s brought her own ceramic mug from her crammed office across the street.
Chan started at FOE -- the biggest network of environmental groups in the world, with offices in 77 countries -- on a six- month fellowship after she graduated from the University of California, Los Angeles in 1994. Her first job was to pin responsibility for what FOE regarded as environmentally damaging projects on the banks that loaned the enterprises money.
Three Gorges Dam
In 1997, Chan uncovered and helped publicize loans to China’s Three Gorges Dam by banks including Morgan Stanley and Merrill Lynch. Since then, Wall Street banks have sought Friends of the Earth’s help in burnishing their environmental image.
In 2005, Chan worked with Goldman Sachs to write an environmental policy statement for the firm, she says.
Carbon isn’t like other commodities, Chan says. The government’s goal to reduce pollution means it will gradually diminish the number of allowances it issues, and that will be a powerful incentive for speculators to try to corner the market and drive up the price, she says.
While banks say they’re a long way from packaging securities from environmental credits now, Chan points to two deals that Zurich-based Credit Suisse Group AG completed in 2007 and 2008 that each combined more than 20 different offset projects, then sliced them into tranches and sold them to investors. The securities were the equivalent of carbon CDOs, Chan says.
Boom and Bust
Chan has an ally in hedge fund manager Michael Masters, founder of Masters Capital Management LLC, based in St. Croix, U.S. Virgin Islands. He says speculators will end up controlling U.S. carbon prices, and their participation could trigger the same type of boom-and-bust cycles that have buffeted other commodities.
In February 2009 House testimony, Masters -- who is no relation to Blythe Masters -- estimated that the early 2008 price bubbles in crude oil, corn and other commodities cost U.S. consumers more than $110 billion.
The hedge fund manager says that banks will attempt to inflate the carbon market by recruiting investors from hedge funds and pension funds.
“Wall Street is going to sell it as an investment product to people that have nothing to do with carbon,” he says. “Then suddenly investment managers are dominating the asset class, and nothing is related to actual supply and demand. We have seen this movie before.”
Companies Need Banks
Still, companies need the financial markets to help them drive down their greenhouse gas emissions at a reasonable price, says the NRDC’s Stevenson. “There are trillions of dollars needed to make this transition, and companies need the banks,” says Stevenson, a former trader for London-based hedge fund firm Brevan Howard Asset Management LLP.
Stevenson dismisses as overblown the concern that banks will soon be packaging greenhouse gas allowances into securities that look like CDOs. The banks stand to make more money, he says, as lenders to companies that need to invest in new power plants and factories to reduce their emissions. “I would argue that this is only a bonanza for the banks in that they get to go back to their day jobs -- which is lending money,” Stevenson says. “I’m suspect of them generating a lot from carbon trading itself in the early years.”
Northeast Test Case
A relatively small-scale cap-and-trade effort called the Regional Greenhouse Gas Initiative tells a cautionary tale. RGGI is a CO2 reduction program established by a group of northeastern and mid-Atlantic states in 2003 with a goal of cutting CO2 emissions from power plants in the region 10 percent by 2018. Ten states are now members. Trading in the companies’ pollution permits began in September 2008 -- in the middle of the financial crisis. As of mid-November 2009, prices of the pollution permits were down 50 percent, according to data compiled by Bloomberg.
Meanwhile, the 10 best-performing investment funds with climate change or clean energy as a central goal all plunged 40 percent or more in 2008, according to data compiled by London- based New Energy Finance. The shrinking global economy sapped momentum for developing new environmental projects.
“To mobilize capital now and begin a transformation to new energy technologies is a very risky business,” says Ken Newcombe, founder of C-Quest Capital, a Washington-based carbon finance business that invests in offsets. “Returns have to be reasonable to take on those risks.”
Risk Capital Vital
Newcombe is the former head of Goldman’s U.S. carbon market origination and sales department and one of the world’s first carbon traders. He holds a Ph.D. in energy and natural resource development from the Australian National University. Private money, including capital from banks, hedge funds and other investors, must keep flowing into the system to realize global environmental goals that the Copenhagen meetings will try to hash out, he says.
“The ultimate objective is economic efficiency,” Newcombe says. “How can we reduce the cost of implementing important public policy? Having a pool of risk capital is absolutely vital to the smooth introduction of a cap-and-trade regime in the U.S.”
As Washington debates climate policy in the shadow of the recent financial meltdown, lawmakers have a right to be wary, Newcombe says.
“There’s legitimate concern that there may be unseemly profits or untenable risks,” he says. “But a problem now is that the critical objective of stabilizing the financial system could lead to an overregulation of the carbon market.”
‘Such a Fog’
Meanwhile, the industrial firms that would be affected by cap and trade are eager for the game to begin, says Lew Nash, a Morgan Stanley executive director and the firm’s U.S. point person on the carbon markets.
“There is such a fog right now in terms of how the legislation is going to work,” Nash says. “There is a real economic desire here for price signals that will permit the market to properly price carbon. Our customers have little choice but to participate in this evolving market.”
Nash says his clients aren’t just looking for help figuring out how to use carbon trading to manage their emissions caps. Pricing carbon will also set the tone for strategic investments. If a company wants to build a new factory, for instance, it’s going to need to factor prospective carbon emissions into its construction and operational plans, Nash says.
Supporters of cap and trade see, over many years, a remaking of the U.S. industrial landscape and a sharp reduction in the gases that cause global warming. Little will happen, though, until the debate is resolved between the bankers who want more liquidity and the lawmakers who demand more regulation.
To contact the reporter on this story: Lisa Kassenaar in New York at lkassenaar@bloomberg.net.
Last Updated: December 4, 2009 00:01 EST
Survey on VGREF.....some responses would be appreciated....glta....nice move today?
I'm at work guys....glad you got an update.....looks like Carl is working his tail off trying to put something together by 2/15....I'm also trying to keep VGREF updated....pls send sticky request....glta
VIASPACE Green Energy Inc. Approved for Listing on OTC Bulletin Board
Common Shares to Trade under Stock symbol VGREF
Press Release Source: VIASPACE Inc. On Tuesday January 19, 2010, 8:30 am EST
IRVINE, Calif., Jan. 19 /PRNewswire-FirstCall/ -- VIASPACE Inc. (OTC Bulletin Board: VSPC), a clean energy company growing Giant King™ Grass as a low-carbon, renewable energy crop, today announced that its majority-owned subsidiary VIASPACE Green Energy Inc. (VGE) has been approved for listing on the OTC Bulletin Board. The shares of VGE common stock are expected to trade under the stock symbol VGREF.
On January 14, 2010, the Financial Industry Regulatory Authority (FINRA) approved VGE's application for quotation on the OTC Bulletin Board. VGE's market maker will file a priced quotation with FINRA, and trading of VGE shares is expected to begin shortly.
VGE's S-1 filing and registration as a separately reporting public company was declared effective by the U.S. Securities and Exchange Commission on December 31, 2009. The filing is available at www.SEC.gov under VIASPACE Green Energy.
About VIASPACE Inc.
VIASPACE is a clean energy company providing products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil and high-pollutant energy sources. Through its majority-owned subsidiary VIASPACE Green Energy Inc., the Company grows Giant King Grass as a low carbon fuel for electricity generating power plants and as a feedstock for cellulosic biofuels. For more information, please see www.VIASPACE.com or contact Dr. Jan Vandersande, Director of Communications, at 800-517-8050 800-517-8050 or IR@VIASPACE.com.
All are welcome to the VGREF board....trading to begin soon.....glta
VGREF's parent company is VSPC....
Web Site: http://www.viaspace.com
VIASPACE Inc. operates as a renewable and alternative energy company. It involves in the cultivation and sale of Giant King Grass, a natural hybrid grass for livestock feed, as well as a feedstock for non-food crop biofuel production. The company also involves in the manufacture, development, and sale of framed artwork; disposable fuel cell cartridges for fuel-cell powered portable electronics, such as notebook computers and mobile phones; alternative energy fuel cells and lithium battery testing equipment; integrated detection and identification system for chemical and biowarfare agents; and electronic sniffer sensor that detects chemical, biological, radiological, explosive, and illegal drug residue. It has operations in China, Korea, and Japan. The company is based in Pasadena, California.
GLTA
More thoughts about the second closing and paying Chang....
Posted by: tommy 9 fingers Date: Monday, January 25, 2010 11:15:33 AM
In reply to: seattleiowahawki who wrote msg# 5649 Post # of 5677
Not entirely sure, mostly asking, could be the Licensor as well.
The transactions under the Purchase Agreement ("Acquisition") involves two phases. At the first closing on October 21, 2008, we issued 3,500,000 newly-issued shares to Chang and his designees. VIASPACE issued 215,384,615 shares of its common stock to Chang and 30,576,007 shares of common stock to Licensor. Chang delivered 70% of the outstanding common stock of IPA BVI to us. In addition, we executed employment agreements with certain persons, including Sung Chang; Carl Kukkonen, VIASPACE’s Chief Executive Officer; Stephen Muzi, the VIASPACE’s Chief Financial Officer; and Maclean Wang, the sole shareholder of the Licensor. Our shareholders also entered into an agreement with Chang regarding the rights as our shareholders ("Shareholders Agreement") to elect directors. IPA China became a wholly-owned subsidiary of IPA BVI (and indirectly, our subsidiary) after the First Closing.
So I did find something interesting, IPA is now actually part of VGREF is that not correct, If so then if someone said that VSPC could sell shares of VGREF to pay Chang would they be wrong. If I am wrong still looks like they do have other assests to minimize dilution.
Following various amendments to the Purchase Agreement, the deadline for the second closing in which the remaining minority interest of 30% of IPA BVI equity holdings would be transferred to us is January 15, 2010 ("Second Closing") unless otherwise extended to February 15, 2010 . At the Second Closing, VIASPACE shall pay $4.8 million ("Cash Consideration") plus Interest (as determined below) since the First Closing, in cash to Chang. Interest on the Cash Consideration shall accrue at 6% for the first six months after the First Closing, and then 18% until June 10, 2009, and then at an annual rate of 6% thereafter. As of September 30, 2009, the entire amount of Cash Consideration due from VIASPACE to Chang was $5.155 million. VIASPACE shall also issue 1.8% of its then outstanding shares of common stock to Licensor. We have complete control of the assets of IPA BVI through our majority ownership position and there is no restriction on the Company’s ability to transfer or capitalize on such assets at any time, including prior to the cash payment due Mr. Chang from VIASPACE.
the entire amount of Cash Consideration due from VIASPACE to Chang was $5.155 million divided by $3.00 pps comes to around 1.7 million shares of VGREF
Page 7
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6960606
Another Yahoo post....
Jan took my call - optimistic tone 19-Jan-10 11:48 pm VSPC holds 59 percent of VGREF shares. I believe the number of VGE shares issued and outstanding times 59 percent times the market value per share is the asset value that will be recorded on the books of VSPC. Once trading starts, and as small contracts are announced, I believe we will see VSPC range between 4 cents and 40 cents during the year. In 2011, as thousands of acres are planted and growing, the price could range between 20 cents and 150 cents.
After that, this will become a solid micro-cap growth company with substantial upside.
That is my opinion, after speaking with Dr J briefly after the market close today. They are managing the whole process in a very conservative way so do not get impatient. They have received a lot of inquiries from companies in a number of countries. The focus is to get as many seedlings planted and growing as possible to support testing and evaluation AND support plantings year-end after commitments are received, on thousands of acres. DP is not the only big player; I sense we will see PR frequently regarding the favorable outcome of currently confidential negotiations.
Jan was on the way out the door so had time for little more discussion other than:
DTI Energy is a non-factor competitor; the DFMCC strategy is to provide the cell licensing for free as long as the OEM agrees to pay royalties for their cartridge patents. They feel VERY SECURE in their patent protections. DMFCC deliveries and time lines are still in the quiet hands of the OEM's. This is a low risk, high margin strategy in my opinion.
He graciously took my call off hours and encouraged a call back during trading hours.
Sorry, folks, time was not an ally to seek answers to other questions I have seen posted.
Sentiment : Strong Buy
Rating :
(7 Ratings)Rate it: laughngrass
A lot of VSPC longs are optimistic about VGREF trading.....