SOURCE: Green Energy Resources
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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.