Global Green Solutions (GGRN- $0.02) has de-register its common shares on October 14, 2011. Consequently, the Company won’t be required anymore to file certain reports and forms, like 10-Ks, 10-Qs and 8-Ks, with the SEC, which will result in annual savings of about $200,000 in legal, accounting and administrative costs. It also means that after October 14th, the Company’s shares will be quoted on the pink sheets quotation system instead of the OTCQB.
The Company did say that it will continue to inform investors by voluntarily providing annual audited financial statements and information through future postings on its website. It will also be required to provide quarterly, annual and other information regarding the Company’s performance in connection with its reporting obligations with Canadian securities commissions.
Another measure being taken is that Global Green Solutions will convert its wholly owned subsidiary, Global Greensteam LLC into a corporation. Global Green’s management feels it stands a higher chance to directly raise funds with less dilution utilizing this new entity, because that entity will own the Greensteam technology and the Aera contract, and carry very little debt.
Several people have invested a lot of money in Global Green Solutions and want this to work out to recuperate their investments. These people now have the opportunity to invest in a clean entity.
Vertical Cyclonic Combustor
The current demonstration unit works, and emissions results were low, but not low enough to secure an air quality permit from the San Joaquin Valley Air Pollution Control District. An early Greensteam prototype did have extremely low levels of undesirable combustion byproducts such as NOx, CO and so the Company has been analyzing the differences between the prototype and the demonstration unit.
One major element of the prototype that wasn’t employed in the demonstration unit, based on cost considerations,, is a vertical cyclonic burner. The burner technology was licensed from The Onix Corporation, which has successfully installed hundreds of cyclonic combustors. It’s the combustor that efficiently burns the biomass and creates a hot gas which is transported to Greensteam’s heat recovery steam generator.
Implementing a vertical burner in the current demonstration unit is probably the best way to try to get the emissions down to the required levels.
These are tough times for Global Green and its shareholders. De-listing to the pink sheets is far from ideal, but in these circumstances justified as it saves $200,000 annually.
The way I see it, Global Greensteam has one more shot. The new entity needs to raise a few hundred thousand dollars, plan how to add the Onix cyclonic burner technology to the current demonstration unit and raise sufficient funds for a small technical team to implement the vertical combustor.
I’m still hopeful because the demonstration unit actually worked impeccably. Everything functioned the way it was supposed to, except the desired emissions weren’t reached. When the Onix cyclonic burner can be implemented, there’s a pretty good chance emissions will be low enough because they were very low in the prototype.
My advice remains hold.
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