SOURCE: Green Energy Resources

December 03, 2009 09:45 ET

Green Energy Resources Announces 2009 10% Stock Dividend and Reverse Split

NEW YORK, NY--(Marketwire - December 3, 2009) - Green Energy Resources (PINKSHEETS: GRGR) announces a 10% stock dividend for 2009 . The issue date and cutoff dates have not yet been finalized but will be set for this December. The dividends will be the first since the company issued a 10% dividend in 2007 and a 5% dividend in 2006.

Green Energy Resources also announced a reverse stock split. The company plans a 10 to 1 reverse split. The reverse split will create an approximate 15 million share float and a pre 2009 stock value level of approximately 10 (ten) times current value. The decision comes after the company conducted a 504 this year to help raise capital in the wake of the 2008 global economic disaster. The issuance of shares through a 504, diluted the stock value but was a necessary action to help generate cash. Green Energy Resources averted major debt in 2009 by obtaining loans against its letters of credit. The company wants to restore investor confidence and accurately reflect its core business model. The company's opinion is that share value is not accurately reflected in fractions. The company is submitting filings to FINRA for approval and plans to move forward as soon as possible. An announcement will be made when the calendar date is finalized. The goal is approximately 2 weeks time. The company will likely receive a new cussip number and a new symbol. The dividend date will be set shortly after the stock split date is set. The reverse split is investor affirmative and proactive.

The company believes the reverse split is fundamental to resuming stock dividends to shareholders and retaining serious investor integrity. The company also maintains a class of "Preferred Shares" that are convertible to common stock at a ratio of 100 to 1. The reverse split will enhance Preferred share value, increase market capitalization and potential leverage value in a potential merger, or facility purchase. The preferred shares will not be a part of the stock split or pay dividends. As is the past, Green Energy Resources executives will refuse and return stock dividends intended to reward shareholders, not company management.

Green Energy Resources Sales contracts for 2009 and 2010 have rebounded sharply after 2008's global economic crash. Sales revenues for 2009 are anticipated to be in the $20 million range, down from higher expectations earlier in the year. 2010 revenues will be revised, as exact starting dates of several domestic and export deals remain subject to government regulatory permits both in the US and abroad. The impact of the Copenhagen summit next week in Denmark, which President Obama will attend, may also positively affect US demand for biomass and wood pellets here in the United States for the power generation industry.

Green Energy Resources is an environmentally friendly company working to preserve global forests not cut them. The company sources its wood from urban wood waste streams, storm damage, tree farms etc. The company adheres to strict environmental rules of the Urban Tree Certification System ( UTCS ) The company is not and does not solicit investment, all releases reflect current market conditions only And are subject to change without notice.

Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings, ship availability, fuel costs and other risks.

Contact Information

  • Contact:
    Green Energy Resources
    631 375 7921