IRVINE, Calif., -- VIASPACE Inc. (OTC Bulletin Board: VSPC), a clean energy company providing products and technology for renewable and alternative energy, announced that Chief Executive Carl Kukkonen reported on the Company's clean energy strategy, recent developments and business outlook during a Webcast interview by Green Baron Report. The webcast is available on the "Webcasts" page at www.TheGreenBaron.com.
Kukkonen stated that on June 4, 2009, VIASPACE filed Form S-1 with the U.S. Securities and Exchange Commission to list its majority owned subsidiary, VIASPACE Green Energy Inc. ("VGE"), as a separate public company that is expected to be traded on the OTC Bulletin Board. He stated his belief that this move is expected to have no negative impact on current VIASPACE shareholders and instead provides significant upside potential if VGE is successful in the marketplace.
According to Kukkonen, there are three reasons why VGE as a separate company will be attractive to investors. First, VGE will be a pure play on renewable energy through its Giant King Grass for biofuels and co-firing with coal in electric power plants. Second, VGE will have only 8.6 million shares outstanding with an initial share price estimated as high as three dollars, a share price level that would be attractive to investors who are adverse to, or prohibited from, investing in penny stocks. Third, VGE will be a fully reporting company, and this new transparency into operations and financial results is expected to be an important factor in attracting new investors.
VIASPACE is now a majority owner (59%) of VGE, which is presently a private subsidiary that owns the renewable energy business based on Giant King Grass and the framed art business, Inter-Pacific Arts. After VGE becomes a public company, VIASPACE will continue to own 59% of VGE, or the same 5.1 million shares that it holds today. No new shares are being issued in this process, so no ownership dilution will occur. As a result, after VGE becomes a public company VIASPACE will continue to report 100% of VGE revenue under accounting consolidation rules. Furthermore, VIASPACE shareholders will retain their current indirect stake in VGE via VIASPACE's holdings of VGE stock, since VIASPACE is not spinning off, i.e. not distributing, VGE shares to VIASPACE shareholders or others. Such a distribution would have reduced VIASPACE's ownership to below 50% and not allowed consolidation.
The other businesses of VIASPACE - Direct Methanol Fuel Cell Corporation with its disposable fuel cartridges, Ionfinity with its government contracts, and the rechargeable battery business - will not be affected.
Recapping his comments during the interview with the Green Baron Report, Kukkonen remarked that VIASPACE's business in fuel cartridges for methanol fuel cells was a result of its early involvement with Caltech and NASA's Jet Propulsion Laboratory (JPL) and that its alternative energy subsidiary, Direct Methanol Fuel Cell Corporation (DMFCC), has licensed a considerable amount of fuel cell-related technology from Caltech, which remains a VIASPACE shareholder since the Company was founded in 1998. Fuel cells efficiently convert methanol, which is contained in DMFCC disposable fuel cartridges, into electrical energy without burning. Fuel cells are being developed as alternatives to traditional batteries for powering portable computers, cell phones and other portable devices.
According to Kukkonen, due to the greater efficiencies of fuel cells compared to batteries, and expected demand for fuel cells - and therefore fuel cartridges - by a number of large markets, DMFCC is establishing a large-scale production and supply infrastructure for distributing fuel cartridges worldwide. The Company recently announced a filling and distribution agreement with a worldwide packager of industrial alcohols including methanol. DMFCC is working on contracts with SAMSUNG to develop cartridges for their fuel cells for a notebook computer and military applications for the U.S. Army.
VIASPACE Green Energy (VGE), the company's renewable energy subsidiary, holds the license to cultivate and market Giant King Grass and is expanding production capacity and seeking supply contracts to meet rising demand for "green" sources of fuel and energy. The Company recently announced joining an international agriculture development group to cultivate and market grass in Tanzania. Kukkonen added that VGE is also pursuing contracts to supply grass as animal feed as a secondary market opportunity.
Kukkonen also briefly discussed the Company's other businesses in rechargeable lithium-ion batteries for electronics and electric-powered vehicles, and advanced sensors for detecting dangerous and toxic materials and chemical weapons. VIASPACE's subsidiary Ionfinity is collaborating with other high-tech entities including Caltech, JPL and other companies to develop sensor/detection systems for the U.S. Army and U.S. Navy.
In closing, Kukkonen reiterated that by streamlining operations and expenses,
strengthening the Company's financial condition and continuing to make substantial progress with its clean energy and other high-tech businesses, he expects to achieve positive cash flow from operations during 2009 and net profitability in 2010.
Recent news and other information, including management's most recent presentation at a global conference on renewable energy, are available at www.viaspace.com.
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About VIASPACE Inc.
VIASPACE is an alternative energy company providing products and technology for renewable and clean energy that reduce or eliminate dependence on fossil and high-risk-pollutant energy sources. The Company provides raw material for cellulosic biofuels and develops and markets fuel cell cartridges, products and technology. VIASPACE subsidiary Direct Methanol Fuel Cell Corporation owns a portfolio of fuel cell patents licensed from Pasadena-based California Institute of Technology (Caltech), which manages NASA's Jet Propulsion Laboratory, where the direct methanol fuel cell was invented. For more information, please see http://www.viaspace.com/ or contact Dr. Jan Vandersande, Director of Communications, at 800-517-8050 or IR@VIASPACE.com.