Are we Days Away??

For those of you fellow conspiracy theorists who think something is about to happen in GERS-ESYM-land I offer these inconclusive and highly subjective tidbits.

1. May 07, EcoSystem Corporation today announced the execution of a management services agreement with Global Ethanol, LLC to provide corporate and plant management services to the company.

2. May 11th, Trevor Bourne, founder and chief executive officer of Global Ethanol, LLC. was appointed to the Board of Directors ESYM (Effective May 31, 2009 - TODAY!)

3. This aggressive Global Ethanol Mission Statement:
The global leader in the renewable fuels industry within five years through operational excellence, strategic capacity expansion, acquisitions, technology enhancements, pre-eminent risk management, marketing and distribution capabilities.

4. The "Currect Projects" area of the Global Ethanol Web site has very recently gone "Under Construction" http://www.globalethanolservices.com/Current_Projects.html

Thanks to Hapitomcat for catching this change - although I check this page daily at home, I obviously have not kept up my daily routine on vacation. This page used to hold "Co2 Capture" and "Corn Oil Extraction" If we get a news release involving Global Ethanol - check this page for a joint release!

5. Under "Risk Management" on the global web site, this was recently added:

Corn Oil Sales "Global Ethanol utilizes its recently installed Corn Oil Extraction System (COES) to aggregate and store corn oil for sale in the open market to the highest bidder. In performing these functions, Global utilizes its already seasoned professionals for these activities and draws on its vast experiences within the management and marketing functions of its ethanol business"

6. "EcoSystem's is entitled to use Cellulosic Corn (TM) technology on a royalty-free basis in its first 100 million gallons per year of corn ethanol production facility (if successfully acquired)." GERS 1Qp22.

7. GERS grant application from the GERS 1Q p22:"The Company will collaborate with EcoSystem and Global Ethanol, LLC on the project."

In the SkunK's mind something is about to happen. Although all independent Companies at the moment, more and more information is being released to confirm they are attempting to join forces in one degree or another in technologies, government grants, management services, joint ventures? As of TODAY - the three CEOS of these companies are sitting on one Board of Directors - ESYM.

The key, as SkunK pointed out in a recent ESYM blog - may well be the 80% collateral held by YAGI in ESYM through preferred shares bundled in The Chairman of the Board's holdings. This is designed to protect YAGI's collateral, but certainly complicates financing, since it makes it very difficult for new money to secure their collateral.

(Wonder why the GE Deal involved so many new LLCs??? - The new money had to secure its investment outside the 80% held by YAGI in GERS.)

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Shorts Stop Here!
In an effort to protect your cardiovascular health this is the last warning! Stop! GO BACK!

OK, lets get real. A core belief in the "short cult" belief system is that the 80% preferred stock arrangement was to enrich the founder and CEO of GERS. As the line goes, no matter how much the common stock is diluted the CEO holds 80%. Lets look at the key word in the sentence above. That word is "holds". YAGI has so far not allowed attempts to set a fixed conversion rate, or to convert the preferred shares to common shares in either GERS and ESYM. So how could that possibly enrich the founder? Yes, he can vote the preferred shares and that protects the company from external or external hostile takeovers, as well as maintaining your hand on the rudder of the company. But maintaining shares that cannot be converted or sold or used as collateral is akin to living in a golden cage. Sure, the cage looks nice and shiny, but your movement or expansion is restricted in every direction and no direct financial gain is gotten.

Of course, one might surmise that as the debts are eliminated in the future, YAGI would release the company and the CEO would be allowed to negotiate a conversion rate with the company and thereby benefit from his position. Surely this would NOT be the argument of a "short" since they cannot imagine that scenario playing out. As a long, I would take that scenario in a second, since it meant that the company, along with my investment, was extremely successful.
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You can certainly draw your own conclusions. I have been wrong before. I do not know "WHAT" will happen. More and More information points to something happening soon. Maybe this week??? Here's hope'n its something good for GERS and ESYM common shareholders . . .

SkunK