As excitement over the news of the acquisition of Houston Industrial Materials by Global Clean Energy (OTC: GCEI) subsided, traders began to unwind their positions in the early hours of trading. This occurred despite the announced completion of the Jatropha business plan, which will create 20,000 jobs. The share price of Global Clean Energy, which hit a 52-week high yesterday, dropped by 16% to $0.115 in the first two hours of trading amidst high volume.
The Texas-based waste-to-energy conversion solutions company with proprietary technology stated that it has completed the Jatropha/abandoned landfill business analysis. As per the plan, Global Clean Energy will plant and harvest Jatropha near abandoned landfills by employing 20,000 people in the next two years. Once implemented, the plan will bring other carbon-based feedstocks to gasification systems in the southern US.
Also, there will be no net cost to taxpayers for implementing the plan, as the project is based on a revenue sharing model. The company is in touch with the appropriate authorities for the approval of the Jatropha planting projects. Having completed its 3-year revenue projections, Global Clean Energy is currently in touch with several finance companies for the capital requirements while the company’s government grants division is preparing the funding applications.
The company is of the view that local, state and federal government involvement and support, added with private sector financing, will allow it to be profitable in the near term apart from creating jobs and cleaning landfills.
Earlier in the month of August 2012, the company resumed trading on the OTC. On August 30, 2012, Global Clean Energy updated shareholders of its future plans. Ten days later, the company disclosed that planning has begun to build an integrated waste-to-energy demonstration facility at an estimated cost in the range of $15-20 million.
Less than five days after the announcement of the project, the company’s share price rose from $0.04 to $0.10. On September 19, 2012, Global Clean Energy stated that it has created a division to apply and monitor grants in aid programs throughout the United States and Canada.
On September 24, 2012, the company declared that it is in the final stages of negotiations to acquire Houston Industrial Materials (HIM). Houston Industrial Materials has expertise in the transportation of the feedstock. The two-decade-old Houston Industrial Materials company has 19 years of consecutive profitability and annual sales in excess of $2.5 million. The next day saw the share price touching the $0.138 level.
With valuations stretched in a short period of time, traders started diluting their positions as soon as the market opened. The volume of shares that changed hands crossed 1.35 million before 12 noon. Even the news of job creation had no positive impact on the share price.
Global Clean Energy ended the day at $0.11 per share, down $0.024 or 17.4% on a volume of 1,527,535 shares.
Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.