VIASPACE Press Release
VIASPACE Chairman Highlights Second Year Progress and Discusses Pathway to Continued Corporate Growth, Profitability and Increasing Shareholder Value
October 27, 2014 - Walnut, California - VIASPACE Inc. (OTC: VSPC) today reported that Dr. Kevin Schewe, has highlighted his second year as Chairman of the Board and reviewed the major accomplishments of VIASPACE during the last twelve months. He discusses the direction of the company and the pathway to continued corporate growth, profitability and increasing shareholder value.
Dr. Schewe started, "Two years ago, on October 2, 2012, I became Chairman of the VIASPACE Board of Directors. In our press release that day, I said, 'Our shareholders will see a "new company" focused on providing tangible results and timely information. We want to attract new shareholders from around the world and reward our many long-term loyal shareholders with a company keen on growth and increasing shareholder value. Our shareholders will not have to wait long to see a difference in the direction of this company'. Since that time, we have kept our investor audience and shareholders regularly informed with timely press releases and social media outreach through our website and Facebook page. We have stayed keen on growth and Giant King Grass (GKG) is being grown in California, Hawaii, St. Croix U.S. Virgin Islands, Nicaragua, South Africa, China, Myanmar, Pakistan, Guyana, Jamaica and the Philippines. We have more new geographic sites growing Giant King Grass to announce in the near future. Developing and signing new contracts with customers, obtaining phytosanitary certificates and the required import/export approvals, harvesting and properly shipping the Giant King Grass seedlings, starting a propagation nursery to expand to a GKG plantation for biofuel feedstock and/or animal feed all takes due time, labor, effort and financing to accomplish. All of these things are a prerequisite to increasing shareholder value and we have stayed keenly focused on our plans in this regard.
Two years ago, VIASPACE entered into a Giant King Grass license agreement with its sister company, VIASPACE Green Energy (VGE). VIASPACE was required to meet the following conditions in the first 24 months after the license agreement was entered into: Condition 1 required at least $200,000 in revenues during the first 24 months and Condition 2 required two or more third-party locations growing at least 10 hectares of Giant King Grass in the first 24 months. In addition, we had a contractual fulfillment to pay legal fees to VGE related to separating the two companies and establishing the license agreement. I am happy to report that VIASPACE has achieved all of these license milestones. The demand for the commercialization of Giant King Grass is accelerating and is now very active and significant in Asia. We are working hard to build the brand name of Giant King Grass in Asia and elsewhere globally as well. VIASPACE has requested that its sister company, VIASPACE Green Energy, assist in the commercialization of Giant King Grass in Asia."
Mr. Sung Chang, President of VIASPACE Green Energy, commented, "I am very pleased with the progress that VIASPACE has made to develop and expand the commercialization of Giant King Grass on a global basis over the past two years. I look forward to us continuing to work together to build and expand the brand name of Giant King Grass and its commercialization as the world's highest yielding biomass platform. There is demand for Giant King Grass, so we are happy to assist VIASPACE in Asia and any other markets.”
Dr. Schewe continued, "During this past year, VIASPACE has gone to great lengths to establish that Giant King Grass is an excellent commercial source of animal feed with test results conducted and confirmed by Dairy One in Ithaca, New York, one of the world's premier forage testing laboratories. Giant King Grass is also now being grown and tested in a research collaboration with the University of California Agriculture and Natural Resources Division (UCANR). Giant King Grass behaves like other forage crops in that younger shorter cuttings are more tender with higher protein and lower fiber whereas slightly older cuttings produce more dry matter lower in protein but higher in fiber. Animals need both protein and fiber and both types of animal feed are needed in the marketplace. The data shows that Giant King Grass has nutritional value nearly as good as alfalfa when cut short and better than oat or sorghum hay when it is cut taller. Giant King Grass can be harvested 4-5 times per year for animal feed, has extremely high yield and is perennial (does not have to be replanted each year). This means lower cost of production and higher profits for the grower. The current demand for animal feed represents a sales equivalent of U.S. $300 billion worldwide and is expected to steadily double between now and 2050. VIASPACE has significant animal feed projects which should begin to come to fruition in 2015 in Nicaragua and Pakistan.
Our flagship bioenergy project is the 12MW Giant King Grass fueled power plant in Nicaragua to be co-located with a 2,100 acre Giant King Grass plantation adjacent to the Miramontes rice plantation located on and irrigated from Lake Nicaragua. Giant King Grass has been growing well there since 2012. We have formed a special purpose company named 'Energia Reino Verde' (in English, "Green Kingdom Energy") to own and operate the GKG plantation and 12MW power plant there. The project will generate 84,000,000 kWh of saleable electricity which will be transmitted on the national grid and sold to both the grid and private customers. As co-developer, VIASPACE both supplies GKG and is a partner in the sale of electricity. The formal feasibility study is nearing completion and VIASPACE's strategic goal is to assemble an engineering, construction and financing team that we can work with on this project and many others as a result of this ground-breaking project. We are spending significant time and resources to insure the success of this project and believe that it will launch our company to new heights based on revenue projections and other brand new projects that we expect it to spawn.
VIASPACE partner Tibbar Energy USVI on the island of St. Croix in the US Virgin Islands is expecting construction to begin in early 2015 for the Giant King Grass fueled, 7-megawatt biogas power plant. This project will be the Caribbean's first carbon neutral base load, renewable power plant. VIASPACE will receive license revenues for 25 years (with a five year option) as the Giant King Grass on St. Croix is harvested for renewable electricity. We also anticipate that this project will serve as model for the Caribbean island region. We have Giant King Grass growing very successfully in Pakistan under the direction of VIAPACE Director, Mr. Khurram Irshad. The projects in Pakistan are both for animal feed and bioenergy applications and the specifics of these projects will be disclosed in 2015 when the customers are prepared to release the information. We are very proud of the work that Mr. Irshad is doing in Pakistan and look forward to the book of business that he is creating there.
We are continuing to advance our South Africa Giant King Grass gold mining remediation project with Harmony Gold Mining Company and Selectra which uniquely combines renewable GKG with bioenergy production and land rehabilitation. We recently announced Giant King Grass growing in Guyana to create a plantation for pellet production and GKG growing in the Philippines with Sagay Central to extend their local power plant operation to sell electricity to the grid. We also just announced Giant King Grass growing at Hawaii Agriculture Research Center on Oahu and we are actively pursuing bioenergy and animal feed projects with companies in Hawaii. All of these endeavors are positioned to generate license revenues for VIASPACE in 2015 and 2016.
Prior to becoming the VIASPACE Board Chairman in October 2012, I purchased 100,000,000 VIASPACE (VSPC) common shares on the open market. Since October of 2012 and as of September 25, 2014, I have invested an additional $525,000 in VIASPACE in the form of senior convertible loans. Every month when I have made these loans to VIASPACE, I have immediately converted the loans to VSPC common shares for two reasons. First, I have purposely kept additional debt off our books, and second, I believe that I am making a good investment. I now am the second largest shareholder in the company and preferentially hold more than 175,000,000 VSPC common shares which is more than 10% of outstanding shares. My plan is to continue to support the company and to continue to build my holdings of common shares. We run a very tight ship at VIASPACE and when our license and power plant ownership revenues begin to materialize; our profit margin will speak for itself. I view the value of my common shares as would any common shareholder and want these shares to appreciate in value. I personally show my solid belief in this Company every single month with my investments and immediate conversions to common shares. We at VIASPACE are working hard every day to create value for our shareholders and attract the interest of the investment community."
About VIASPACE Inc.
VIASPACE grows renewable Giant KingTM Grass as a low-carbon fuel for clean electricity generation; for environmentally friendly energy pellets; and as a feedstock for bio-methane production and for green cellulosic biofuels, biochemicals and biomaterials. Giant King Grass is a proprietary, high yield, dedicated biomass energy crop. Giant King Grass when it is cut frequently at 4 to 9 feet tall is also excellent animal feed. The USDA granted approval for planting Giant King Grass throughout the US and cooperates in exporting by performing the required inspections and issuing the phytosanitary certificate needed for import into foreign countries. Giant King Grass is being grown in California, Hawaii, St. Croix Virgin Islands, Nicaragua, South Africa, China, Myanmar, Pakistan, Guyana, Jamaica and Philippines. For more information, please go to www.VIASPACE.com or contact Dr. Jan Vandersande, Director of Communications, at 800-517-8050 or IR@VIASPACE.com.
Safe Harbor Statement
Information in this news release includes forward-looking statements. These forward-looking statements relate to future events or future performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Such factors include, without limitation, risks outlined in our periodic filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K for the year ended December 31, 2013, and other factors over which VIASPACE has little or no control.