GreenShift Releases Shareholder Letter

The SkunK has listed a few highlights that caught his eye. Way below are some short SkunK comments and a link for the entire letter.

SkunK

Tue. March 17, 2009; Posted: 12:57 PM

Potential for Government Loan Guarantees
Fortunately, our entire 40 million gallon per year contracted extraction backlog is shovel-ready and is likely to be very qualified for Federal loan guarantees and other forms of public financing. President Obama and his staff have clearly stated positive policy goals for the biofuels industry. Secretary of Energy Chu has remarked that corn oil should be extracted for conversion into biofuel, and Secretary Vilsack, the head of the U.S. Department of Agriculture, has stated that increasing the corn ethanol blend ratio in gasoline is likely to put more biofuel on the streets more quickly than ethanol from non-corn sources. This concept, the speed in which the corn ethanol industry can be leveraged to affect change, is a central theme of our commercialization strategy.

Patents
We have a substantial investment in the development of this model and we have filed many novel patent applications with anticipated issuances beginning in 2009. Issued patents would enable us to rapidly acquire market share, cash flow and accretive assets that could be used to defray construction costs and lead times.

NEW TECH
We have also quietly developed an entire portfolio of new cleantech designed to leverage our existing extraction platform to shift the existing corn ethanol complex into increased financial and environmental sustainability. Bench tests conducted during 2008 with one of our new technologies, our patent-pending Cellulosic Oil(TM) process, demonstrated the potential to increase oil extraction yields to more than 10 million gallons for every 100 million gallons of corn ethanol produced. This technology is designed to cost-effectively produce and extract more oil by using our existing extraction assets while favorably impacting the nutritional qualities of the distillers grain ethanol co-product. Significantly, our patent-pending Cellulosic Oil(TM) technology is also designed to integrate with our extraction technologies into existing biodiesel plants. Additional information on Cellulosic Oil(TM) and the rest of our new technologies will be provided over the coming months.


GE DEAL
"This last item refers to investment agreements that were executed with GE Energy Financial Services and Yorkville Advisors in December 2008 for $38 million in equity financing after eight months of intensive due diligence and contract negotiations. Due diligence included an exhaustive review of our company, our management and our technologies, and rigorous and extensive performance tests of our extraction and biodiesel facilities to verify our yields and production efficiencies. We passed on all fronts and the technical merits of our technologies were firmly established. However, pressures induced by the stressed financial markets intervened and this financing was unexpectedly pulled earlier this month - almost a year after signing exclusive financing agreements that did not materialize."

http://www.greenshift.com/pdf/GERS_Shareholder_Letter_March_17_2009.pdf





Best Line in this Shareholder Letter:

"We are the best at what we do and we have the scars to prove it."

It appears some investors had started to mourn too early and those dang Leprechauns had begun their dance over an empty grave. Greenshift has taken some punches, but is still in the fight. . .

SkunK