Business Management Discussion and Company Update : Overriding Corporate Strategy GCE has reinvented itself many times to take advantage of the marketplace and its' many changes in the world of clean energy and alternative fuel sources. It has always been the philosophy of the Board to never risk the company by doing a deal which could in fact harm the company. Many public companies since 2008 have risked the shareholders and are no longer in the marketplace, GCE is and continues to strive to put together a business model which will provide profits and not risk the loyalty that our shareholders have provided. With that in mind the 3rd Quarter has prepared the company for future project development, cash flow, profit and most importantly stock value. The following information highlights those corporate actions aimed at accomplishing those goals.
Mr. Mann has been working with the company since 2012 and has served as Chief Development Officer since 2013. He has taken the lead on putting together the company's waste to fuels projects, which will be detailed later in this report We want to thank Dr. Earl Azimov who has acted as President and CEO for years and will remain on the Board assisting with projects as needed. Dr Azimov has been with the company since 2007 and will continue to work toward its' success.
Kenneth Adessky Cleared
Former Chief Financial Officer, Founder and Director of the company, Mr. Kenneth Adessky received notification from the Courts in Quebec that all charges and judgments against him were dismissed. The Court ruled that the inquiry, subsequent complaint and hearing since 2009 were all done illegally by the Quebec Bar Association. The Quebec Bar Association dismissed the original complaint against Adessky in 2008 and cleared him of any impropriety. Subsequently, in 2009 the illegal actions by the Quebec Bar Association began. The Board of Directors never lost faith in Mr. Adessky and his integrity and express appreciation for his work and continued support of the company through such trying times.
" Board of Directors Authorizes Legal Options on damages to the Company and its' Shareholders "
Since 2008 certain parties have used various means, social media, emails and other ways to libel, slander and damage the company. The Company has kept extensive records which we believe show the intent to harm the Company, and at times, the tortuous interference against the Company. GCE is in the final process with lawyers in Texas and Canada of assessing the damage financially done and deciding in which jurisdictions to pursue on behalf of our shareholders and the company.
Precious Group Metals Acquisition
For over a year the company has attempted to complete an acquisition in the PGM recovery industry. Many pricing changes have occurred making the profit margins thin at best. The key to entering the market became initial acquisition costs, and the company could not get to the point of having those costs work. The last attempt was to tender an offer for an aggregator in receivership but again in the final analysis based on present conditions the numbers do not work. The company at present will continue to monitor the PGM market place. The company's deposit with Tetronics is still in place and gives the company flexibility in smelting when necessary.
In the third quarter the company worked at analyzing and attempting to implement a diversification by developing a digital platform. After much work and due diligence the company opted to withdraw from completing the acquisition of The EcoAppCompany. At this time, Mr. Mann, the newly appointed CEO, wishes to focus GCE on its core mission which is alternative and renewable energy. A digital platform does not meet this mandate.
Cease Trade Order Canada and Form 10 Filing
It is the intention of the company to finish the regulatory requirements of the AMF, Quebec with the intent of lifting the cease trade order. We have employed a Quebec audit firm which has converted three years of GAAP accounting statements to IFRS qualified financials. We will submit to both the OTC markets and AMF our audits in the first quarter of 2017 which will result in the company being fully audited since 2008. Based on our business plan we will then refile a Form 10 in an attempt to become a fully reporting company. The company will then report to the SEC and will decide which market to move up to.
Illinois Scrap Tire to Fuels and recovered Carbon Black Project (W2F)
The W2F project, which was delayed due to the rapid decline in world oil prices over the last two years, has been reactivated now that oil prices have stabilized. The project is now being reviewed by multiple alternative energy project funders. GCE is optimistic it will be funded.
The project consists of converting waste tires to high value products using pyrolysis. The tire chips are converted to gas and recovered carbon black. The gas is then converted to liquid fuel. The recovered carbon black is sold into the world-wide carbon black markets as a replacement for carbon black derived from crude oil while the fuel is sold to a large fuel distributor as a blending fuel for gasoline and other fuel products.
The project already has in place all the requirements to make it shovel ready. GCE will use proven commercially operational technology (30 plants in operation world-wide), tires chips from a large tire recycler in the Midwest, purchase agreements from the largest carbon black distributor in North America and fuel purchase agreements from a billion dollar fuel distributor.
The W2F project will be the largest commercial tire conversion project in North America and will be part of a nationwide effort to eliminate waste tires in landfills and as burning fuel for industry both of which are contributing to pollution by leaching and destroying the air shed. This project, although delayed in the past by the oil markets, is the top priority of GCE to achieve our goals of clean alternative energy and high value products by converting hazardous material into high value products in an environmentally clean fashion.
The second arm of the company to achieve shareholder value and alternative energy production is the work that is being done on creating an ALGAE REIT with GCE as the managing general partner. To date, the company has begun negotiations on pricing algae production indoors, off take agreements to assure production is sold, securing a property to build its' first plant, and finishing the pro forma. Algae production in the US has moved to a highly productive scale and the return on investment looks extremely promising. The company believes the system being developed will revolutionize how fuel is produced but more importantly how it is financed.