Regarding Corn Oil market dynamics, market price, value, supply and demand. Without injunctions the market
supply is still saturated with non GERS licensed, infringer oil. So what's happening with injunctions? Without, non GERS licensed oill floods the market and the price drops, I have noticed the drop in price since 2 years ago as more producers have implemented corn oil systems. Without injunctions this trend will continue, we've seen the forecasts for as much as 80% of the industry running back end corn oil extraction systems by end of this year. I believe GERS has about 15 to 20% licensed and yet in quarters 4 and 1 only brought in about $3 million per, and recorded losses, therefore having to depend on further diltuon, shareholder support to makeup the shortfall, to stay afloat. Looking to GERS financial history you can see how much shareholder support has been used, mass dilution and reverse splits, necessary because of non profitability. With a corn oil market flooded with infringer oil and GERS current market share not bringing in enough for profitability, it looks like the dilution trend will continue, which coming from a perspective of 2 to 3 years ago dissapoints me. I thought 2.3 bgpy would bring in far more than $ 3 million per quarter and would be more profitable. I think I underestimated the effect a huge increase in supply from non GERS licensed infringer oil would have on the oils market price. I think that is why 2.3 bgpy brings in only about $3 million. Apparently not enough for profitability. Can they downsize to ensue profit, haircuts? So without injunctions or a near term court victory, settlement or signing and shut down of those producers, the current struggle looks to continue. More losses and dilution? I'm looking forward to seeing Qtr 2 results and hope for the better. Because of irrepareable losses to GERS investors I believe injunctions should be granted and infringing producers oil taken off the market and systems shut down. That I think would help us at GERS by reducing supply and focusing demand on legal licensed oil, supply from GERS licensees. The reduced supply and increased demand should push the corn oil market price higher, more $ for GERS licensees and GERS 20% royalty. Only then could we see a much better take from 2.3 bgpy and a much better chance at profitability.
So is the injunction process moving? And how long will the case drag on? Will GreenShift win the case? I hope so.
