VIASPACE Inc. (OTCQB:VSPC) today announced that Board Chairman, Dr.
Kevin Schewe and CEO, Dr. Carl Kukkonen conducted a detailed
interview with Phil Kreider of The Green Baron Report at
TheGreenBaron.com regarding the recent corporate separation of
VIASPACE from VIASPACE Green Energy (VGE) and future business of
VIASPACE as a stand alone company.
The following is a transcript from the interview which was
released by Green Baron. The webcast interview can be listened to
at www.thegreenbaron.com/Webcasts.htm.
Question: On October 2, VIASPACE announced the
orderly separation of VIASPACE and VIASPACE Green Energy. Please
explain the terms of the separation and how the separation will
benefit VIASPACE and its shareholders.
Answer: Dr. Kevin Schewe--In 2008, VIASPACE and Mr. Sung
Chang joined forces in an effort to introduce and commercialize our
proprietary bioenergy product, Giant King™ Grass. Mr.
Chang's framed art company, Inter-Pacific Arts, provided cash
revenues to fund both VIASPACE and VIASPACE Green Energy. From 2008
until 2012, our CEO Dr. Kukkonen became the world's leading Giant
King Grass expert and through numerous invited presentations
at international conferences and many meetings with potential
customers, he introduced our product to the world. During the
same time period, Giant King Grass was rigorously tested by many
independent laboratories and found to be an excellent fuel and
feedstock for electricity generation, energy pellets and for
biofuels and biochemicals. Giant King Grass is the highest
yielding, continuously renewable, dedicated bioenergy crop in
the world. This research and business development phase took time
and effort but in retrospect was quite successful at establishing
the reputation of VIASPACE as an emerging green energy company and
Giant King Grass as a tier one renewable, bioenergy
product.
Earlier this year, Mr. Chang decided to move in a different
direction with VIASPACE Green Energy and the framed art
business. We mutually decided to split VIASPACE and VIASPACE
Green Energy into "sister companies" that would both work to take
the next step to commercialize Giant King Grass as the world's
leading renewable bioenergy platform. VIASPACE previously held
VGE's stock but we owed Mr. Chang $5.6 million. Under the terms of
the separation, the $5.6 million debt to Chang was satisfied with
VIASPACE returning the VGE stock shares it owned to him. As a
result, VIASPACE became a stand-alone company and VIASPACE's
ownership in VIASPACE Green Energy went to Chang. VIASPACE has
the exclusive worldwide license for Giant King Grass outside of
China and Taiwan.
VIASPACE and its shareholders have benefited from the separation
by eliminating the overhang of our prior $5.6 million debt and
emerging as a pure play in bioenergy. We are now totally
focused on the commercialization of Giant King Grass as our core
business. We have moved from a research and development
company to a deal making company focused on creating a new, robust
and organic revenue stream for our future and for our
shareholders.
Question: Additionally, in the October 2 press
release, it was announced that Director Kevin Schewe, the holder of
100 million shares of VSPC common stock, entered into a loan
agreement with VIASPACE in the form of a secured convertible note.
Since we have Dr. Schewe with us here today, there is no better
time to ask about the details of this financing and the positive
support you continue to provide the Company.
Answer: Dr. Kevin Schewe--As part of the separation of
VIASPACE from VGE, I agreed to provide VIASPACE a million dollars
in the form of a secured, convertible loan. This was important
because VIASPACE needs this positive financial support in the wake
of the separation. VIASPACE does have revenues, for example,
the initial phases of the deals we have already announced
in St. Croix and Myanmar, but this does not yet cover the expenses
of being a public company. As a result of my tangible
financial commitment to the company, I have been given
the irrevocable proxy to vote the Company's 50.1% class-A preferred
stock share, and I will use that share to advance the cause of
VIASPACE shareholders. Investors should note that I have
recently converted my first two loans, which together totaled
$85,000, into VIASPACE common shares. These shares are restricted
for six months and this should send a strong message regarding my
belief that these shares are going to be an even more valuable
investment going forward.
Question: On October 3, it was announced that
VIASPACE signed a 1,500 acre Giant King Grass supply contract with
Tibbar Energy. Tell us about this contract, when it should come on
line, and what kind of revenues you hope to achieve.
Answer: Carl Kukkonen --This is a "real deal" that our
investors have been waiting for us to announce. It is a 20-year,
1,500 acre Giant King Grass supply contract with Tibbar Energy in
St. Croix (U.S. Virgin Islands) for a 6MW anaerobic biogas power
plant. Electricity on St. Croix is currently generated with diesel
and heavy fuel oil which is very expensive and produces substantial
carbon dioxide emissions. We are partnering with Tibbar to use
continuously renewable Giant King Grass as the dedicated, non-food,
bioenergy crop to fuel the power plant with a lower cost than fuel
oil and negligible carbon dioxide emissions. This 20-year project
is slated to be underway in 2013 and fully on-line by first quarter
2014 and will generate over 20 full time jobs with a total economic
benefit of $150 million to the community over the life of the
project.
We are already generating revenues in the consulting,
design and implementation of the project, but our real revenues
will be from our ongoing license fee collected as the Giant King
Grass is continually harvested. We have proven to our customers
that they actually save money in operational costs and
efficiencies by using the extremely high bioenergy yield
from VIASPACE's Giant King Grass and paying a license
fee than by using lower yielding, less productive crops. The
precise terms of the agreement with Tibbar are confidential, but
our revenues are regular and dependable over the life of the
project.
Question: On October 9, VIASPACE announced that the
U.S. Department of Agriculture officially approved Giant King Grass
in the United States. What does this victory mean for the Company
and how will this help you market the product going
forward?
Answer: Carl Kukkonen --USDA approval of Giant King Grass
validates our product in the eyes of the world, and also allows us
to enter the US market. Giant King Grass was vigorously tested
by the U.S. Department of Agriculture Animal and Plant Inspection
Service for over one year, and found to be pathogen free. It was
approved for distribution in the United States. We can now
grow Giant King Grass in the United States. Having passed the
rigorous standards of the USDA gives our customers here in the U.S.
and worldwide peace of mind regarding the safety of our
product.
Question: On October 11, it was announced that you,
Dr. Kukkonen (the CEO), the CFO, Stephen Muzi and Director Angelina
Galiteva have all agreed to a 6 month lock-up of their VIASPACE
stock shares. You and Mr. Muzi also agreed to 33% salary
reductions to trim corporate expenses. Please explain the purpose
of the lock-up and pay cuts.
Answer: Carl Kukkonen --As part of the separation,
Dr. Schewe, and Mr. Chang agreed to a six month lock-up
of their VIASPACE shares to demonstrate their belief in
the future of the company. Our CFO, Stephen Muzi and I, and
our other Board Director, Angelina Galiteva, likewise wanted to
demonstrate our confidence in the future of the company by locking
up our shares. In total, insiders holding 47% of the VIASPACE
common shares have locked up their shares for 6 months which should
reduce potentially volatility that could have been related after
the separation of the companies.
As a further step to show our dedication to the success of the
separation and the future of VIASPACE, both Mr. Muzi and I accepted
a 33% pay cut as part of a comprehensive plan to control expenses.
We want our shareholders and anyone interested in our company to
know that we are working hard to grow this company and increase
shareholder value going forward.
Question: On Tuesday, October 16, it was announced
that VIASPACE signed an agreement in Myanmar with June Industry
Ltd. It appears that this relationship could develop into something
new and different. Please explain.
Answer: Carl Kukkonen --We are very excited to now be part
of Myanmar's future. President Obama is going to Myanmar next week.
The US is strongly supporting the move to democracy in Myanmar, and
is encouraging new business relationships. Myanmar, formerly known
as Burma, has the perfect climate for growing Giant King Grass. The
previous military government ran power plant projects in the past,
but now the new civilian government is granting permission to local
and foreign companies to generate power. Just last week, I made an
invited presentation at the Forum on Renewable Energy Development
in Myanmar held by the Asian Development Bank which is expected to
provide funding for power plant projects including biomass in
Myanmar. At the forum, the German company Conergy presented on
solar energy and General Electric made a presentation on wind. I
represented biomass. My presentation entitled "Biomass Electricity
Production Options for Myanmar" is available on the VIASPACE
website at www.VIASPACE.com. I presented specific biomass
electricity generation options using Giant King Grass for Myanmar,
including small power plants using anaerobic digestion and larger
30-90MW direct combustion power plants. Both options are scalable
and multiple power plants all fueled by Giant King Grass could be
built in a short time.
I have spent more than three months in Myanmar this year and
have established good relationships with our partners there. We
believe that Giant King Grass can become the perfect, continuously
renewable, non-food, dedicated bioenergy platform for
local electricity generation and also for other bioenergy
products such as pellets that can be used locally or exported to
other nations.
Question: On October 22, it was announced that the
USDA approved Giant King Grass was growing in
California. Please explain the benefit and importance of your
California site.
Answer: Carl Kukkonen --Our California site serves several
important purposes for VIASPACE. First, we wanted to prove that
Giant King Grass grows well here in the United States. It loves the
California climate and we have proven that it can be used for
renewable bioenergy production in the Southern United States. This
site now serves as a convenient U.S. "showroom" for potential
customers so they can actually see and experience Giant King Grass
for themselves. Importantly, the site serves as a propagation
nursery which provides Giant King Grass seedlings for US customers
and partners in other countries. We can provide grass samples
to customers or labs for bioenergy testing. Having our
California site will help us to expand in the United States, the
Caribbean, Central and South America.
Question: Carl, What can you tell us about your
recent efforts on behalf of the Company?
Answer: Carl Kukkonen-- VIASPACE is now actively involved
in bioenergy project development. We are not only a premier
supplier of dedicated biomass; we now are serving as project
developers together with partners to bring power plant and other
bioenergy projects to fruition. Giant King Grass is an
enabling technology. With its high yield, we can produce
electricity and biofuels at a lower cost than the
competitors. With our partners, we can deliver a biogas power
plant in 12 months and a larger direct combustion power plant in 24
months including the Giant King Grass plantation. We have full
financial models to support the economic side of the projects. We
are in contact with both debt and equity financers for power plant
projects.
In a power plant project, VIASPACE will not only receive the
license fees for the Giant King Grass, it will have an equity
participation in the power plant which will generate additional
revenue.
In the last six months, I have traveled extensively and met with
many potential partners and customers. We are working on projects
in eight countries and have signed several contracts. The contracts
in St. Croix and Myanmar have been announced, and the others are
covered by confidentiality agreements and will be disclosed at the
appropriate time.
Question: When do you believe that VIASPACE can
achieve profitability and what we else would you like to tell an
investor that might be considering a purchase of VSPC
stock?
Answer: Dr. Kevin Schewe-- VIASPACE is now poised for huge
success at commercializing Giant King Grass worldwide as the
highest yielding biomass crop in the world. We should begin to see
revenues from our license agreements in 2013 and profitability
in 2014. We have many deals in various stages of development and
plan to announce those as they are completed. We are actively
engaged in business deals and project development in the Americas,
the Caribbean, Africa and Southeast Asia. We believe that we have a
solid foundation, a unique product, an aggressive business plan and
the expertise and commitment to see it all through to resounding
success!
With regards to what I would like to tell an investor that might
be considering an investment in VIASPACE, consider the following.
When I joined the VIASPACE board of directors in January 2012, I
owned about 65,000,000 shares of VSPC. Since that time, I have been
aggressively accumulating additional shares, and as of today, now
preferentially own just north of 127,000,000 shares which is nearly
twice what I owned less than a year ago. As an insider, I continue
to accumulate shares and that should send a strong message of
support to current and potential investors. We are
presently a penny stock, microcap company, but we aspire to much
greater value and we are actively engaged in making deals
happen. We want and plan to make Giant King Grass the
world's leading, renewable, non-food, bioenergy platform for
bioelectricity, exportable bioenergy pellets, biochemicals and
bioplastics. I think that VIASPACE is an investment worth
considering.
About The Green Baron Report
The Green Baron Report is a subsidiary of Evergreen Marketing.
The Green Baron Report is an internet stock market newsletter that
focuses on low priced stocks that appear to have significant upside
potential. For more information about Evergreen Marketing, Inc. and
their subsidiary The Green Baron Investors Society visit them on
the web at http://www.EvergreenMarketingInc.com and
http://www.TheGreenBaron.com. Our disclaimer can be viewed at
http://www.thegreenbaron.com/Disclaimer.htm.
About VIASPACE Inc.
VIASPACE grows renewable Giant KingTM Grass as a low-carbon fuel
for clean electricity generation; for environmentally friendly
energy pellets; and as a feedstock for bio-methane production and
for green cellulosic biofuels, biochemicals and biomaterials. Giant
King Grass is a proprietary, high yield, dedicated biomass clean
energy crop that does not compete with or displace food production.
For more information, please go to www.VIASPACE.com or contact Dr.
Jan Vandersande, Director of Communications, at 800-517-8050 or
IR@VIASPACE.com.
The VIASPACE Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=15154
Safe Harbor
Statement
Information in this news release includes forward-looking
statements. These forward-looking statements relate to future
events or future performance and involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to be materially
different from those expressed or implied by these forward-looking
statements. Such factors include, without limitation, risks
outlined in our periodic filings with the U.S. Securities and
Exchange Commission, including Annual Report on Form 10-K for the
year ended December 31, 2011, and other factors over which VIASPACE
has little or no control.
CONTACT: Dr. Jan Vandersande, Director of Communications
800-517-8050
IR@VIASPACE.com
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