Friday, December 26, 2008

The Coming PR Offensive

The SkunK normally pulls out his crystal ball to see the future GERS share price, the Quarterly revenues or to pick an occasional lotto number (they get suspicious if you win all the time). I now see something on the horizon that is just as important. I see a major Public Relations push to win the hearts and minds of new investors and the incoming Administration.

Except for an occasionally reply to an Email from the SkunK and others; and the annual & quarterly reports mandated by the SEC; the company has maintained a tight operational security for almost ten months. Sure, we did get an obligatory 8K in May with the NextDiesel Deal. But the Sahara Desert of true PRs is outlined between these two oases (I mean really, how often do you get to use the plural of oasis?) :

GreenShift Strikes Oil at Western New York Energy; Monday February 25, 10:06 am ET
to this:
GreenShift to Receive $38 Million Investment; Tuesday December 16, 2008, 9:10 am EST

The last three shareholder letters were Feb 19th, 2008; November 9th, 2007 and June 22, 2007.

That is three Shareholder Letters in eight months. True, that was during the time of consolidation. This last year has been a time of slow and steady expansion during the worst credit crunch of our lifetime. However we are now ripe for another Shareholder Letter. We are just coming off a financing deal that may lock in the company's future for the upcoming year. It may well push us into that silver cloud of profitability.
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As outlined in the 3Q we may see some sort of preferred stock deal for GS CleanTech by EOY:

On September 4, 2008, the Company's subsidiary, GS CleanTech Corporation, entered into a series of convertible notes totaling $1,734,579. The notes shall bear interest at a rate 15% per annum and mature on December 31, 2010. Commencing on February 1, 2009, payments are due at a rate equal to the greater of the interest accrued on the unpaid principal or $100,000 times the principal amount divided by $3,000,000. Beginning July 1, 2009, payments are due based on an eighteen month amortization, with all principal and accrued interest paid on or before December 31, 2010. The notes are convertible into shares of GS CleanTech subsidiary preferred stock (par $0.001) at the closing by GS CleanTech of a planned Preferred Stock Financing at a 15% discount to the final terms of any such Preferred Stock Financing. If any portion of the note is prepaid in cash, GS CleanTech shall pay a 10% redemption premium at the time of redemption. If the Preferred Stock Financing does not close on or before January 1, 2009, the interest and redemption premium will increase to 20%. The balance of the loans was $1,734,579 as of September 30, 2008.

And here as a follow up is this from the recent Q&A:
http://greenshift-gers.blogspot.com/2008/12/q-with-mr-kreisler.html
Financing - GS CleanTech has a planned Preferred Stock Financing with a goal of a close on or before January 1, 2009. Can you tell us how this will work? Will it be offered to the public? Are there any updates on this, Sustainable Systems or other financing?

Answer: Not to the public. Not at this time. An update regarding Culbertson progress will be provided as appropriate.
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In conclusion:
As in 2008, in 2009 I would expect to see PRs in January and a new Shareholder Letter in Feburary. The only thing I am sure about is I will be surprised somehow:
In January:
The SkunK anticipates a possible Preferred Stock Financing Deal and/or/a close on the Sustainable Expansion loan. We could throw in Public Relations releases on the three COES that have not yet had a proper PR release: Marion, IN, Riga, MI, and Albiob MI.

In February:
I would expect to see a new Shareholder Letter. In this shareholder letter I would expect to see a greater explanation of the $38M dollar deal, and exactly how much of a stake that GE and its Financing arm has in the "affiliated" investor in GERS. I would expect to see a consolidation of all the "good news" released in December and January. I am hoping for an address of production numbers - something where reasonable people can put that old dog to sleep. We may see a hint of how new Administration policies will help the company, although that would depend on how fast Washington is willing to move. I would not forgo the element of surprise. I would expect to be surprised by something (I cannot explain how anyone can "expect" to be surprised). Off the top of my head I can imagine surprises ranging from an increased COES backlog or a COES coming on line early - to something explaining Mr. Kreisler's "waste water" comment at the end of the recent Q&A. . .

"We greenshift the corn ethanol hill first - to the point where it is competitive without the credit. Wastewater is next."

SkunK

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