December 21, 2015 - Vega Biofuels, Inc. recently provided the following Q4 update to its shareholders:
December 21, 2015 By Marketwired
To our Shareholders, 2015 has been both a difficult and an exciting year for our company. We wish to thank our shareholders for their continued support as we grow the company.
During the first quarter of the year, we worked closely with Vencor International to increase our manufacturing capacity. Once Vencor ceased operations, we were fortunate to be able to assume some of the manufacturing Agreements they held.
As a result of President Obama’s plan to cut carbon pollution in the United States by reducing carbon dioxide emissions created by coal-fired power plants, we adjusted our business plan to focus more attention on the domestic market for our products. Vega’s Bio-Coal product is a clean renewable energy source that can be burned in existing coal-fired power plants and reduce the amount of carbon emission currently created by traditional coal. To date, our marketing efforts have been directed to the European markets. This new focus is already providing additional opportunities for the company. Our Bio-Coal product is available today and we are aggressively marketing it in the United States. The Obama administration has secured more than $4 billion in private sector commitments and actions to scale up clean energy innovations like the company’s Bio-Coal that reduces carbon pollution. We are in the process of securing the services of an outside firm to assist the Company in applying for available federal funding for renewable products like ours.
During the second quarter of the year, we held a shareholder conference call to respond directly to issues and questions that our shareholders had. This is something that we plan to do a couple of times each year. It gives our shareholders the opportunity to ask questions and get the answer directly from the company rather than from another source. During the call, we also discussed the direction the company was going and how it would impact shareholder value.
During the third quarter of the year, we welcomed a group of shareholders to our first Open House to showcase the torrefaction process and see one of the torrefaction machines being constructed. Those attending were able to take home a sample of our Bio-Coal.
In an effort to increase our marketing efforts in the United States, we announced that we had entered into a Joint Venture Agreement that gives us an exclusive production agreement with a third party manufacturer. This agreement increases our production capacity by approximately 40,000 tons annually.
In an effort to attract additional funding for the Company, we conducted a reorganization of our common stock. The reorganization was approved and implemented by The Financial Industry Regulatory Authority (FINRA) on October 16, 2015. We are optimistic that with a higher evaluation, we will be able to close some of the funding opportunities that we have that will allow us to grow to meet the demand of our customers.
Earlier this month we announced that we had entered into an Agreement with The NOW Corporation to test and produce various torrefied products from industrial hemp grown at The NOW Corporation’s Colorado facility. This is a very exciting project for us. It won’t have an immediate impact on our bottom line, but it gives us the opportunity to become a leader in the use of hemp in the manufacturing of energy products. We look forward to keeping you updated on this project as we move forward. As a result of this Agreement, we have placed an order and paid a deposit for the production of an additional torrefaction unit that will be used solely for testing the use of industrial hemp as a feedstock for manufacturing the company’s Bio-Coal product.
We are currently in discussions with several potential customers in the United States. We will provide updates on these projects as we move forward. We have also provided quotations and information to two potential international clients. It looks like 2016 is shaping up to be a very exciting year for the company.
Thanks again for your continued support.
Michael K. Molen
Vega Biofuels, Inc.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “project,” “intend,” “expect” “should,” “would,” and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.
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