Hopefully this is it
FORM 10-Q
For the quarterly period ended June 30, 2010
On June 3, 2010, we and Regent Trend Investment Ltd. (soon to be Milestone Biofuels Limited) (“Milestone”) announced an amendment to our non-binding MOU, dated March 12, 2010 to extend the due diligence period an additional 90 days to August 25, 2010 to more fully explore the opportunities available for both parties.
As previously disclosed, the MOU contemplates a strategic relationship between Milestone and us, including a $20 million direct equity investment in us and collaboration with Milestone to fund a joint venture to develop and operate biofuel production plants in the continental United States with a production capacity of 250 million gallons per year. In addition to satisfactory completion of due diligence, any transaction also remains subject to negotiation and execution of definitive agreements and board approval by both parties. The transaction obtained shareholder approval as required under NASDAQ listing rules, at our annual shareholders’ meeting on July 8, 2010.
On August 5, 2010 the Company appeared before a NASDAQ Continued Listing Hearing Panel to present a plan to regain and sustain compliance with the NASDAQ continued listing standards. The Company was deficient on two continued listing standards as of June 30, 2010 when we reported negative stockholders equity of approximately $1.1 million.
The Company offered to the panel that closing of the August 2010 registered direct offering coupled with the subsequent negotiated settlement payments and the conversion of the 90-day secured convertible Notes results in increases in the Company’s stockholders equity. The Company also stated that it expected to be in compliance with the stockholders equity requirement when it files its Form 10-Q for the period ending September 30, 2010.
The Company believes it has the catalysts in place for share price appreciation and long term continued listing standard compliance. With working capital the Company anticipates executing on the short term objectives of reinitiating production activities, shipping fuel out of Baltimore and signing additional sales contracts over the next couple of months. The Company also intends to continue work towards completing the potential Regent Trend Investment Ltd., or Milestone, joint venture agreement and also to continue pursuit of power generation opportunities.
