New Green to Set to Begin Commercial Production
New Green Technologies, Inc. [[NGRN.OB]] shares jumped higher after it announced the completion of all electrical work on site for the operation of its mobile waste-to-energy reactor unit in Palm Harbor, Florida. The first waste feedstocks, run through the company’s patented CAVD system, will be tested for viability and commercial exploration purposes.
New Green’s Catalytic Activated Vacuum Distillation Process (CADV) was first acquired from EarthFirst Technologies in May 2008. The company plans to leverage the technology to recycle automobile shredder residue, plastics, carpet waste, citrus and bio wastes, waste wood, construction waste, tobacco waste, and numerous other types of waste.
New Green also entered into a joint venture to establish a large scale project in Alberta, Canada, and is seeking, and has entered a proposal for a grant to study wood waste to power conversion using the CAVD technology. The large amount of waste wood stockpiles could provide a huge resource in Alberta’s energy market if it were effectively converted.
Last year, New Green reported a loss of $1,680,184 with no revenues, as it was still a development stage company. Meanwhile, the company showed a cash balance of just $4,480 and current assets of $6,980 compared to current liabilities of $822,492. This means that the company will likely need to raise additional funds from debt or equity in the future.
New Green’s auditors also issued a “going concern” statement noting that the company has suffered recurring losses from operations since inception, and the company’s need to obtain adequate sources of outside funding to support near-term operations. While this is common among development stage companies, it is important for investors to remember.
In the end, New Green shareholders are excited about the prospects of revenues in the near future as its waste-to-energy conversion plant prepares to go online. However, a lack of cash and working capital on its books means that several risks still remain. As a result, prudent investors may want to wait for this green company to prove its technology and book some revenues.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com