Marlin,
Although the company has not yet disclosed the number of partnership units it has sold, Spencer responded to my inquiries on some of the specifics back in late August:
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In response to your request on how Microcap consulting is presenting Green Oasis and the limited partnership in an abridged form:
Green Oasis Environmental, Inc. is on the "cutting edge" of the
Environmental-resource recovery movement. Green Oasis manufactures a
mini-refining plant that converts waste/used motor oil into ASTM #2 diesel and #3 high heating oil. The patent applied for process for the EnviroEconomics system accomplishes this in a one step thermal cracking and distillation process in an oxygen free environment.
Process profit margins are 5 to 8 times that of other competing process. Equipment manufacturing pretax profits are 55%, with a return of investment in 12 to 24 months. Green Oasis reported profits of $975,300 on revenues of $2,075,000 for 1995. Green Oasis has a current backlog of over $25,000,000.
The Green Oasis lmited partnership, for accredited and/or qualified
investors, allows direct participation in the ownership of an EnviroEconomics processing plant. The $50,000 unit offers potential cash flow, paid to the investor, of 35% to 50% per year; liquidtity in the form of an investor's right to exchange their unit(s) for Green Oasis stock at a discount to a 5 day average of the bid price; and a warrant to purchase up to 15,000 shares of Green Oasis stock at $3.50/share.
As I mentioned, the partnership will own the corporate "on site" demo plant, which will receive all mechanical upgrades. Also, the original plans for the partnership would have given the investors 90% ownership in the demo plant. Bill has recently decided to dramatically reduce that amount available to investors to between 30% and 45%, and to accept investments in increments of 1/4 units of $12,500.
If you know of anyone interested in either the stock or partnership have them contact me at Microcap Consulting & Communications, Inc. at 847.266.2055, fax 847.266.2058, or e-mail BFiore4054@AOL.
Spencer Maus
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Bare in mind that participants in the partnership would be eligible for their share of Section 29 Energy Tax Credits which can come in nicely around tax time... :0) The sales of the equipment to the partnership helps to defray the costs of reassembly as well as recouping some of GRNO's equity in it. GRNO needs to get the unit operational at all costs, even if it means the sale of part or all of its prototype/demonstrator. Whatever short-term opportunity cost involved is easily made up for in the amount of firm orders it will generate as a operational demonstrator for the veracity of the process. No need to be "penny-wise and pound foolish" on this matter. Besides, equipment sales to the partnership count as earnings.
During my visit, I broached the possibility with Bill of continuing to utilize the partnership model on future GRNO domestically operated processors. I thought that it would be a great way for the company to have direct investors pay for the manufacture costs of the units (around 45% of total price) with the remaining stake held by GRNO. It could be a nice way to "have your cake, and eat it too". It would provide these investors with a high semi-fixed income based on the rack price of diesel and fuel oil, as well as substantial annual tax credits.
In my thinking, the fact that there are vast quantities of potential investors looking for a way to accumulate tax credits opens up a multitude of possibilities. These possibilities open up when the company has proven that it has the technology it says it does. And according to the original investor that I met in Charleston, the company does. He used to come by and pick up a load of diesel for his home furnace, and another investor used to stop by to fill up his Mercedes. All of this was during the time when Unit #1 was in the R&D mode, being streamlined for commercial sale. As I understand it, the only difference between #2 diesel and #2 fuel oil lies mainly in the additives. Correct me if I'm wrong on this (all of chemical engineers out there.)
Bill didn't make any comment on the subject one way or another, as we were quickly onto discussing other matters. Personally, I hope that he does, as I will be looking into purchasing a couple of these partnership units in the next couple of years. Hopefully I will need the tax credits.... :0)
Regards,
Ron |
