VIASPACE Inc. (OTCQB:VSPC) today announced that Board Chairman, Dr.
Kevin Schewe, conducted a detailed interview with Karl Marek of
TheStockRadio Show regarding the recent corporate separation of
VIASPACE from VIASPACE Green Energy (VGE) and the future of
VIASPACE as a stand alone company.
The following is a transcript from the interview which was
released by TheStockRadio on Friday, October 26, 2012. The
interview can be listened to at
http://thestockradio.com/carl-kukkonen-ceo-of-viaspace-inc-vspcotc-qb/1737.
Question: What led to the separation of VIASPACE and
VIASPACE Green Energy?
Answer: Our previous partner, Mr. Sung Chang, decided to move in
a different direction with VIASPACE Green Energy (VGE), Inter
Pacific Arts (IPA), and the Yingde, China Pellet Mill. VIASPACE
held VGE's stock but we owed Mr. Chang $5.6 million. Mr. Chang
could have foreclosed on VIASPACE but foreclosure was a lose-lose
solution for all shareholders including me, Mr. Chang, our CEO
(Carl Kukkonen), our CFO (Stephen Muzi) and at least a thousand
general, VIASPACE common shareholders who would have all been left
holding "wallpaper". With Mr. Chang's agreement and help, we
embarked on a plan to save VIASPACE and split VIASPACE and VGE into
"sister companies" that would both work to advance Giant King Grass
(GKG) as the world's leading, renewable bioenergy platform.
Question: What are the highlights of the VIASPACE and
VIASPACE Green Energy Separation Agreement?
Answer: Under the Separation Agreements, the $5.6 million debt
to Chang was satisfied with VIASPACE returning all the VGE stock
shares. As a result, VIASPACE became a stand-alone company and VGE,
Inter Pacific Arts and the China Pellet Mill went to Chang. Both
VIASPACE and VGE have remained as publicly traded companies.
VIASPACE negotiated a Giant King Grass license agreement to
commercialize GKG which covers the entire world outside China and
Taiwan (VGE will commercialize GKG in China and Taiwan). VIASPACE
will pay an 8% royalty fee to VGE for future GKG commercial
revenues. Also as part of the separation, I agreed to provide
VIASPACE a million dollars over five years in the form of a
secured, convertible loan. I have been given the irrevocable proxy
to the vote the company's 50.1% class-A preferred stock share and
that stock share will be transferred to me after five years or when
the company's market capitalization exceeds $50 million--whichever
occurs first. Finally, insiders holding a total of 47% the current
outstanding stock shares have agreed to a "lock-up" of those shares
which prohibits trading or transferring those shares for the next 6
months.
Question: How has the separation of the companies
affected shareholders (including yourselves)?
Answer: Accomplishing the separation has averted foreclosure and
has preserved VIASPACE as a viable, publicly traded company with a
very bright future. The VIASPACE management, board of directors and
me personally, worked very hard to negotiate a separation and
license agreement that gives us and all VIASPACE shareholders an
excellent probability that we will succeed as a stand-alone company
and continually build shareholder value going forward from here.
VIASPACE Management agreed to a 33% pay reduction as part of a
comprehensive plan to control expenses. Everyone who holds VIASPACE
common shares is holding a tradable equity that now has significant
upside potential. Our shareholders will see a new company totally
focused on growth and shareholder value.
Question: What are the prospects for VIASPACE's success
on your own?
Answer: I like this question Karl because it relates to where we
have come from and where we are going. Since 2008, our CEO, Dr.
Carl Kukkonen, has been laying the foundation of where our
proprietary Giant King Grass fits into the emerging world of
renewable biomass/bioenergy products. Laying this foundation has
required research and development, rigorous and repeated testing of
Giant King Grass by many reputable, independent laboratories and
testing facilities, numerous speaking engagements at national and
international conferences, and finally, commercialization of Giant
King Grass in the real world to create a profitable business model.
During that time frame from 2008 until 2012, the world's economies
have been generally sluggish and slow to move forward with green,
renewable bioenergy projects. We have watched other green energy
companies not make it through this difficult time. VIASPACE has
survived and has made Giant King Grass well-known to the global
renewable's industries. Since the Spring of 2012, we have seen a
definite surge in the global interest in our product, Giant King
Grass, and customers recognize our expertise to use Giant King
Grass as the highest yielding biomass crop in the world. With the
separation of the companies behind us, VIASPACE is now poised for
huge success at commercializing Giant King Grass worldwide (outside
of China and Taiwan).
Question: Let's now talk about your future as a
stand-alone company. What is your business strategy going forward
from here?
Answer: The short answer, "deals, deals and more deals!" During
the so-called "downtime" of our company while we negotiated the
separation, I instructed our CEO, Dr. Carl Kukkonen, to get Giant
King Grass growing in as many places as possible and I am pushing
Carl seven days a week to get the deals lined up and executed. This
strategy is working and we are more excited and optimistic about
the success of this company than ever before. On October 3'rd, we
announced our first real deal: a 20-year, 1,500 acre Giant King
Grass supply contract with Tibbar Energy in St. Croix (U.S. Virgin
Islands) for a 6 MW 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 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, 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. Our
business relationship with Tibbar has been excellent and we hope
that our partnership will grow with them in the Caribbean
region.
On October 16, we announced that we have signed business
development and confidentiality agreements and received payment
from June Industry Ltd. in Myanmar. Myanmar, formerly known as
Burma, borders India, China and Laos and 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. We envision Giant King Grass playing an important
role in Myanmar's future, not only for electricity generation, but
also for biofuels and other applications. We believe that there is
a significant opportunity for VIASPACE to succeed with our partners
in Myanmar.
We are actively engaged in the various stages of several other
deals and we are contacted regularly from companies that we have
visited with in the past or who are brand new to us. All of them
have one thing in common: they need a high-yield, renewable,
nonfood, dedicated green energy crop for green electricity and
biofuels. We have the answer to their need: Giant King Grass and
the expertise to make it work for their projects.
Question: The U.S. Department of Agriculture recently
approved Giant King Grass in the United States. Today, October 22,
you announced that Giant King Grass is growing in California. Can
you tell us about these developments?
Answer: These developments are huge for our company! Our
proprietary product, Giant King Grass, has been vigorously tested
by the U.S. Department of Agriculture Animal and Plant Heath
Inspection Service (APHIS) and has been released from quarantine
for distribution in the United States. Giant King Grass in
non-invasive and has been found to be pathogen free--we have been
issued our U.S. phytosanitary certificate. We can now grow Giant
King Grass anywhere in the continental United States and also
including the U.S. Virgin Islands, Puerto Rico, Guam and
Hawaii.
On October 22, we announced that Giant King Grass is growing in
California. Remember that Giant King Grass grows best in warm
climates and it is not frost-resistant. So I can be specific only
in telling you that it is growing in Southern California. The state
of California is a recognized leader in renewable energy and for
agriculture in general. Giant King Grass can be grown on marginal
lands and will not displace agricultural food production. Biomass
electricity from GKG is available 24 hours a day, seven days a week
for base power and Giant King Grass is also suitable for cellulosic
biofuels, biochemicals and bioplastics. We hope to play an active
role in the green energy future of California.
Our California site serves several important purposes for
VIASPACE. First, we wanted to know how well Giant King Grass grows
in Southern California--the answer is that it grows great there--it
loves the climate there! We have been able to conduct some
agronomic experiments on planting, germination, fertilization and
water requirements. The site serves as a convenient U.S. "showroom"
for potential customers so they can actually see and experience
Giant King Grass for themselves. This site will also provide Giant
King Grass seedlings for customers and partners in other states and
export to other places. We can also provide grass samples for
testing by customers. Our strategy is to rapidly and aggressively
expand in the United States, Caribbean and Central and South
America. Having our roots down in California fits perfectly into
our corporate strategy!
Dr. Schewe commented, "The interview with TheStockRadio was a
great opportunity to get the message of VIASPACE's bright future
out to a wider audience and potentially attract new investors. We
have recently taken additional steps to broaden our audience by
connecting VIASPACE to social media. We have recently launched our
corporate links to Facebook, Twitter and LinkedIn. We have
updated the VIASPACE website at www.viaspace.com. We are committed
to keeping our customers, shareholders, potential new investors and
other interested parties informed of our ongoing progress."
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.
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.
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.
This information was brought to you by Cision
http://www.cisionwire.com
http://www.cisionwire.com/viaspace-inc-/r/board-chairman-interviews-with-thestockradio-program-regarding-the-future-of-viaspace,c9327310
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