GSHF .116 and VRDM .035 - further on restructuring and progress.
GreenShift Industrial Design Unit Releases Shareholder Letter
Jan 4, 2006 9:38:00 AM
MOUNT ARLINGTON, N.J.--(BUSINESS WIRE)--Jan. 4, 2006--
GreenShift Corporation (OTC Bulletin Board: GSHF) today released to its shareholders the following correspondence from David Winsness, the chief executive officer of GreenShift Industrial Design Corporation ("GIDC"):
Dear Shareholders:
We achieved much of what we set out to do since our formation in the beginning of the third quarter 2005; we acquired our initial portfolio of green technologies, we brought on key senior operational, engineering and business development talent, and, as announced last week, we initiated our plans to move GIDC into a public platform - which we believe will play a critical role in the deployment and proliferation of our green technologies.
Regarding this last item, our parent company, GreenShift, last week announced its plans to transfer its stakes in GIDC and GreenShift's wholly owned Tornado Trash Corporation to Veridium Corporation (OTC Bulletin Board: VRDM) in connection with Veridium's implementation of its plans to revitalize its industrial waste recycling business model. We expect that these transactions will be completed during the first half of this quarter and will be particularly timely as we begin to demonstrate cash flows stemming from applications of our technologies.
The GIDC business model is based on the engineering and marketing of green innovations and processes that enhance manufacturing efficiencies, improve resource utilization and minimize waste. Our primary goal is to minimize inefficiencies for our clients in their respective use and, we hope, their reuse of natural resources in their myriad processes. Our revenue model is primarily based on our provision of these industrial design services and an in-the-trenches form of technology transfer.
Take, for example, our proprietary Dissolved Air Flotation ("DAF") sludge processing technology that effectively reduces the volume of DAF sludge by 80% while recovering the majority of the animal fats contained in the waste of livestock and poultry processing facilities. Poultry processing facilities alone generate an estimated 500 million gallons per year of this sludge. Our technology enables livestock and poultry processing facilities to dramatically reduce the volume of sludge they are shipping and disposing. This translates to reduced costs and increased profitability for livestock and poultry processing facilities. We do not intend, however, to sell equipment to these facilities - instead we intend to install our equipment onsite at each of our prospective clients' facilities on a turn-key basis, where we are paid fixed annuities based upon our clients' reduced costs.
Our DAF process is precisely the sort of incremental green shift that we were founded to implement, and I believe it is an excellent example of what a green shift really is - by reducing inefficiencies for livestock and poultry processing facilities, we are helping to reduce consumption of virgin natural resources, we are helping to reduce waste disposal expenses and the impact on the environment of that disposal, and we are doing it by helping our clients increase their bottom lines for no up front capital expenditure.
Another good example is the current installation of our Tornado Generator(TM) technology at Protein Solutions, LLC, located in Joplin, Missouri, where the technology effectively processes and dehydrates poultry products into highly nutritional and shelf stable products. This system operates 24 hours per day, 5 days per week to produce high quality animal fats, chicken broth and dehydrated poultry proteins - another case of reduced waste and increased profit.
Take this approach now and extend it to our use of our entire portfolio of technologies and targeting of inefficiencies across a wide array of industries and you will get a sense of where we are headed.
Our focus for the immediate term is to initiate cash flows with key targeted installations of our technologies. And, while our technology portfolio currently includes a number of exciting universal processing, water purification, emissions control, and waste recycling technologies, we will continue to acquire and develop technologies to add to our portfolio. Any such activity however will be subordinate to our generation of positive cash flows.
Finally, we are excited about moving into a public platform. We believe that our technologies are capable of some pretty amazing gains in process efficiencies and we intend to demonstrate this with cash flows in the immediate term. We are additionally excited to have the financial and other support of GreenShift - who is expected to receive an additional 10% stake in Veridium in return for its planned transfer of GIDC and Tornado Trash, and then plans to distribute that 10% stake out to GreenShift's shareholder base. It is our view that GreenShift's dividend and other support will help to enhance awareness of our business model at a critical time in our evolution.
We are pleased with GIDC's progress and we are very much looking forward to bringing our technologies to market under our planned new capital structure. We are grateful for your support and involvement. I look forward to our next communication.
Best Regards,
David Winsness
Chief Executive Officer
GreenShift Industrial Design Corporation
About GreenShift Industrial Design Corporation
GIDC's business model is based on the engineering and marketing of green innovations and processes that enhance manufacturing efficiencies, improve resource utilization and minimize waste. GIDC's mission is to deliver consumer oriented Natural Solutions(TM) based on an array of green technologies and applied engineering expertise that reduce waste at the source and make it easier for people and businesses to recycle and reuse resources. GIDC plans to initially focus on the acquisition, development and marketing of benchmark green technologies and products that accomplish the following key goals:
-- Reduce the volume of waste generated by residential and
commercial consumers;
-- Increase the convenience and decrease the cost of recycling by
residential and commercial consumers; and,
-- Increase the cost-efficiency of processing certain types of
industrial wastes.
GIDC is currently a development stage business but expects to leverage its portfolio of powerful new green technologies to generate revenue starting in 2006 from the provision of customized engineering services to third party clients.
About GreenShift Corporation
GreenShift Corporation (OTC Bulletin Board: GSHF) is a publicly traded business development company (BDC) whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.
BDCs are regulated by the Investment Company Act of 1940 and are essentially publicly-traded equity funds where shareholders and financial institutions provide capital in a regulated environment for investment in a pool of long-term, small and middle-market companies through the use of senior debt, mezzanine financing, and equity funding. GreenShift plans to use equity and debt capital to support and drive the value of its existing portfolio of companies and to make investments in a diversified mix of strategically compatible growth stage public and private businesses and technologies. Additional information regarding GreenShift Corporation is available online at www.greenshift.com.
Safe Harbor Statement
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GreenShift Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Source: GreenShift Corporation
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GreenShift Corporation
Jim Grainer
973-398-8183
Fax: 973-398-8037
Email: investorrelations@greenshift.com
Web: www.greenshift.com
or
CEOcast
Inc. for GreenShift Corporation
Ed Lewis
212-732-4300 |
