My wife and I visited EK Laboratories Thursday June 25 as scheduled, along with a dozen or so investors/perspective investors. To my surprise, all three founders (Daniel De Liege, Mark Koch and Johan Sturm) were there. We met the 3 main scientists (Dr. Paul Blair, inventor of the CTS process and Director Ek Laboratories, Dr. Xie from China and Dr. Peter Cohen). The entire operation is located in a beautifully remodeled warehouse. We were escorted into a very nice conference room where Daniel De Liege and Mark Koch introduced the entire company concept and progress to date in carrying out their business plan.
We toured the Lab where Dr. Cohen and Dr. Blair did most of the presenting. They explained some of the lab capabilities, much of which are way beyond my level of understanding including various pieces of lab equipment: JEOL DART Mass Spectrometer, Finnigan Ion Spectrometer, Waters Micromass with electrospray ionization, something called UV-VIS detection and something about MS-MS capabilities plus methods of separation including gas and liquid chromatography, etc……………
They explained that Ek Laboratories will be the only quality control center for the CTS process around the world. In layman’s terms, they stated they will test at their lab all the cellulose for all completed factories which will detail the quality of the sugar, etc., that these factories will produce. Daniel stated their policy is that every factory will be producing a consistently good product every time.
We moved into the small-scale production area where we witnessed hay being converted to sugar in various steps, all starting with a mechanical breakdown to what appeared to be a very fine corn meal-like material, with no visual evidence of emissions and no use of hazardous materials to complete the entire conversion process. I understand that sugar sells on the world market for about 13.4 cents per pound based upon my recent check. This process claims to produce sugar at about 5 or 6 cents per pound without using food sources, without hazardous wastes, within minutes. I can’t verify that they produce sugar at this low cost from what I SAW, but I am simply reporting what my wife and I observed.
If they can produce a quality sugar at this low cost in this manner, then this would be disruptive global technology as this company claims.
I think the proof will come when the first factory is constructed and actually produces a healthy profit. From listening to the CEO, I don’t see the first earnings coming in until about 5 or 6 months out, as the “completed engineering has to be delivered” to the company in South Africa, but “they are already working on that.”
All the above, as good as it may sound, still strikes me as a speculative investment and that is why my wife and I limit our total speculative investments to no more than 2% of our total investment portfolio. If we lose some of it, we typically still make a good profit for the year from the remaining 98%.
I let Daniel know that I was checking out some of the message boards and that investors are looking for transparency. He stated he has not been holding conference calls because he hasn’t had that much to discuss – until very recently. He stated he is planning one by the end of the next quarter.
Daniel stated an open house at Ek Laboratories, is in the planning process – hopefully within the next quarter. Right now he is focused on many other items, including improving the Ek Lab as he was just recently able to get the upgrade in electricity for some of his high-powered equipment. They still have a lot of work to do on this facility although it is fully functional now on a small-scale basis.
In conclusion, my opinion is that I should watch for the press releases from the company, watch for the 10-Q independently audited quarterly financial reports, and all other company releases. I will keep doing my due diligence. There is nothing more that I can say about this company until I see the earnings in the “company coffers”.
