North American Market and Drivers In the U.S., the field of waste management is becoming more closely aligned with resource management, and this is in large part because the way we view "waste" is dramatically shifting. New technologies are being developed that allow more materials to be recovered and new value created from those materials. Much more of our waste stream is considered to be valuable scrap material and new technologies such as automation for materials separation are allowing the industry to tap into these resources and create value out of what was previously considered non-valuable material. Conversion technologies, specifically those designed for plastics and tires, offer the same potential to create value for landfills. Tires to Fuel (TtF) technologies offer the potential to manage landfill-bound tires as a resource to create a valuable alternative fuel source. At this time, a large portion of the tire and plastic waste streams is still treated as "waste," and there is a large opportunity to recover more of the tires and plastics used in the United States.
THIRD QUARTER UPDATE:
The company has been working throughout the quarter on two major projects: 1. Algae REIT, and 2.
Waste to Fuels.
We have been meeting with the company's investment bankers and the final commitment and pricing is
anticipated to be announced in the middle of the fourth quarter. The property for construction has been
narrowed to two locations, both outside Houston, Texas. The turn key operators have been involved in all
pre construction pricing, land selection and development of a science board of directors. Announcement
of those relationships will be released upon signing the funding letter of commitment.
Also, it is the
intention of the company to devote 10% of the property to research and development of strains of algae
which are in high demand. Presently, some strains of algae are selling in the marketplace for $1600 per
GCE and the REIT intends to be a recognized world leader in algae quality for the marketplace.
Based just on the contracts pending, the company's gross profit margin is 60%. This is for just two uses
of algae, feedstock and fertilizer. The science relationships will have a tremendous impact on pricing of
These activities have taken time and money but the future of the company by establishing
this base of profit and cash flow will be recognized by not only the marketplace but our shareholders.
Further, the continued work on bringing waste to fuels to reality has been the focus of part of our team.
As with algae we felt we would have final financing in place by this point in time, the underlying
business model works and our partners have been extremely cooperative in obtaining our final financing.
We do not as of the end of this quarter, have our waste to fuels projects finished but we are still optimistic
that it will be and serve as a complement to our algae operations.
Our audits in preparation for filing our Form 10 have not been completed but we believe to have all
financials in audit status in fourth quarter. Likewise when GAAP is completed our Canadian auditors will
complete their work to obtain Canadian trading status.
We are so grateful for the patience that our shareholders have shown and believe we will reward such
patience with a solid, profitable company