NEW Q&A with Mr Kreisler

The SkunK recently emailed 5 questions to the CEO and Chairman of Board of GreenShift, Kevin Kreisler.  The SkunK is happy to report he just received this response:

Q1.  Did GreenShift find the FEW Conference rewarding? Can you give us a report on the Dave Winsness presentation?

1 - The FEW provides an excellent forum to interface with prospective clients, strategic partners and other industry stakeholders. We appreciated the opportunity to present. A copy of David's presentation is attached. [SEE HERE]

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Q2. With the Global Ethanol, Marquis Energy and now the United Ethanol Licensing deal recently announced it seems that GreenShift is at least 25% of the way to the stated goal to "Execute new license agreements during 2010 with ethanol producers corresponding to an aggregate capacity of at least 1 billion gallons per year of ethanol." Is this goal and the goal to reach profitability and 30% debt reduction still within GreenShift's grasp this year?

2 - Yes for each goal.
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Q3. Is it required to reach some agreement on the patent litigation to achieve these goals? Or can these goals be achieved by years end if the patent litigation is still unresolved?
3 - Ethanol margins are thin and resources are scarce. Our business model is based on increasing the availability of both for our clients, and we are only paid if we are successful - that is, we are only paid when our licensees realize increase profit based on their use of our technologies. Imagine what the industry would look like today if ethanol producers purchased their plants on the same basis. Achieving our goals will require that we earn the business and partnership of producers on the basis of win-win solutions. We have demonstrated that our licensees make more money with GreenShift than without us and we will continue to do so. Further, recall the statistics cited by the EPA earlier this year. By 2022, an estimated 70% of the ethanol industry is expected to use corn oil extraction technology to extract 66% of the available oil and produce about 680 million gallons per year of corn oil. An estimated 25% of the industry is using part of our patented technology today to extract an estimated 22% of available oil. We are focused on all producers, but there is a fair bit of room to grow with producers that are not currently using the technology.
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Q4. Many shareholders fear the potential reverse split - although I believe most recognize the need for it. Can you address these shareholder fears and corporate needs?

4 - We used over $50 million of convertible debenture financing to invent, develop and commercialize our portfolio of cleantech, importantly including our now-patented corn oil extraction technologies. A key challenge and objective for us is to decrease and satisfy our remaining convertible debt in cost-effective ways by both avoiding the issuance of new convertible debt on expensive terms and by minimizing the issuance of common stock as much as possible. We believe that we have an actionable plan to achieve this objective based on the transaction announced today and continued success in the trenches by winning new business. The more sales we generate, the more we are paid for the value we created for ethanol producers, the more healthy we will become; and the more debt we will be able to reduce on improved terms. In the meantime, debt repayment on an ongoing basis can be expected in the form of additional common stock issuance. We prefer to avoid a split but it may be required depending on market conditions and the compliance requirements of our debt agreements. We have to balance these factors and the operational realities of our business as we evaluate the potential for a split. We are monitoring the situation and do not take the issues lightly. Additional disclosure here will be provided as and when appropriate.
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Q5. Can you give us your thoughts on the Ethanol Industry and where it will be in 12 months?
 
5 - The ethanol industry is the backbone of America's renewable fuels industry but it must evolve into increased efficiency. Technological innovation will play a key role in that evolution. Fertile areas for development include process efficiency (to increase availability and conversion of starch), enhancing the feedstock mix (integration of cellulosic process technologies can improve margins and decrease producer risk exposure), and co-product optimization (to maximize the value of the two-thirds of the kernel that does not refine into fuel). GreenShift is focused on the last of these - our ambition is to bring the positive financial and environmental benefits and valuable competitive advantages of our technologies to our clients and to continue to make a meaningful contribution to the continued evolution of the ethanol industry.
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I would lke to thank Mr. Kreisler for his response,
 
SkunK