Greenshift Corporation (GERS)

[Slashnuts]

What Happened To GERS?

(For the newbies)

Patent infringement by one of the construction companies that built GPRE,BIOF,ANDE,PEIX's plants. ICM built a lot of the industry's ethanol plants. They(ICM) actually signed a non disclosure agreement with Veridium,(now Greenshift) back in 2004 when Greenshift taught ICM how corn oil extraction works. ICM turned around and built multiple systems at the ethanol plants. The problem with that is the method patents for these systems have been issued to Greenshift. ICM owes a ton of back royaltys to GERS. ICM is losing in court and trying to get their founder, the guy behind it all, off the hook.

My point is, patent infringement is what happened here. The industry is now respecting the patents. GPRE, BIOF, SUN, ANDE, and many more have licensed with Greenshift while ICM is on the hook for what they did. Did you know ICM built GPRE's corn oil systems knowing that GPRE licensed with GERS? That just happened not too long ago. All these revenues are adding up. Look at the last few Q's, revenue up over 100% YOY. Many of Greenshift's customers just reported record results from their systems. That's because GERS invented it, they are the best. ICM copied it and got busted. Q311's results should be excellent. Revenues should be up A LOT from the $1.7 they made in last years Q3.



The "real debt" is about $27 million. The founders of the company loaned the rest and they stated that after the majority of the $27 was repaid, they would eliminate the rest on good terms with GERS. The founders have forgiven millions in debt in the past. GERS has been dropping debt 30% a year for a couple years and said they expect another 33% reduction in debt by the end of this year.

They expect 2.3 billion gallons of ethanol production to be under license. At 3% corn oil extraction rates and $3.60 per gallon of corn oil, Greenshift's 20% is roughly $50 million a year. PLUS new licenses in 2012, settlements from the infringers,(some have already settled http://www.businesswire.com/news/home/20100817006314/en/GreenShift-Center-Ethanol-Settle-Patent-Infringement-Case ) past royaltys going all the way back to 2005, some that intentionaly infringed will pay treble damages or 3X's the past royalty.

There's a lot of producers that infringed (30-40?) 16 are in the current litigation http://ethanolproducer.com/articles/8049/hearing-set-for-patent-lawsuit-in-greenshift-corn-oil-case , and a lot that are now respecting the patents. That debt will be gone in no time. The patents sit on a shelf and collect money, highly profitable. Greenshift has other patented technologies as well, like algae, gasification, and feedstock conditioning that GERS' customers have been expressing interest in lately.

In the 2nd link above, I find the patent infringers comments in the comment box, funny. But only because the judge has since ruled in Greenshift's favor. https://ecf.insd.uscourts.gov/cgi-bin/show_public_doc?12010ml2181-169

Greenshift won the Markman Hearing which is all that really matters. I think settlements are currently in negotiations, in fact Greenshift has stated so..

"In addition, we are currently in discussions with a number of producers with respect to new settlement and license agreements"


"We are also currently evaluating opportunities for additional debt reduction."

Good Luck To All!$!$!$!$!$!$!$!$!$