International Sustainability Group Inc. (OTCMKTS:ISGP) Finally Goes Green
International Sustainability Group Inc. (OTCMKTS:ISGP) issued its latest press release on August 10. It’s a big one. It even has the word “historic” in the headline.
According to it, the company has entered into a joint venture with James Young, the mayor of a city called Philadelphia, Mississippi. The joint venture will give ISGP access to a 240,000 square foot facility where the company will be able to produce algae. ISGP won’t need to worry about paying rent and it will rely on grant money from the State of Mississippi, tax exemptions, and employees wage subsidies. Basically, the production costs will be minimal and, as an added bonus, this new venture will provide the people of Philadelphia, Mississippi with sixty new jobs.
That’s not the only good piece of news that has come out of ISGP‘s headquarters over the last month or so. Three weeks ago, they said that they are about to start production in their new pilot plant in West Chester, Pennsylvania. They are so confident in their Algae Up line of products, that they expect to log about $1.5 million in revenues before the end of the year.
At first, investors didn’t share their enthusiasm. In fact, between July 27 and August 17, the share price dropped from $0.12 all the way to just over $0.02. Yesterday, however, the pumpers stepped in and thanks to them, the stock bounced. United Pennies of America and Epic Stock Picks sent out some emails in exchange for $17,500 and the hype they created was enough to push the ticker on a 36% jump. The session was closed at a hair under $0.03 per share and we’ll now try to find out if the ticker can remain at these levels.
The truth is, as optimistic as the news sounds, it’s in a rather stark contrast with the latest financial report which, funnily enough, came out just twenty-four hours before the pumpers said that ISGP could one day become an acquisition target for BP and Exxon. The first thing that you should probably know about the filings is that they could be a bit confusing. The Stockholders’ Deficiency section of the financial statement, for example, says that at the end of June, there were about 510 million shares issued and outstanding. According to the Report and Disclosure document, however, on the same exact date, the O/S count stood at a little less than 528 million. A lot of stock was issued during the quarter, but ISGP decided not to tell us why or at what price.
The sloppy reporting is garnished with the following financials:
- current assets: $14,713 in cash
- current liabilities: $58,328
- NO revenue since inception
- quarterly net loss: $163,710
Finally, you should probably consider the names of some of the people running the company and their previous business endeavors. The latest press release told us that the historic joint venture with the city of Philadelphia, Mississippi would have been impossible without the help of Surajit Khanna, ISGP‘s Chairman of the Board and controlling shareholder.
Mr. Khanna should know a thing or two about algae. He was once at the helm of a company called Biofuel Advance Research and Development, LLC (later known as BARD Holdings Inc) and he claimed that he is about to build a facility which, thanks to a clever piece of technology, will have an annual output of 20,000,000 gallons of algae oil per acre. Some experts weren’t convinced. In fact, they argued that this number is not really in line with the laws of nature, but Mr. Khanna responded by saying that they’re wrong.
The only problem is, he then failed to prove his righteousness. BARD Holdings made an unsuccessful attempt to go public and although it later signed a co-venture with OriginClear Inc (OTCMKTS:OOIL) (then known as Origin Oil), nothing really came out of the partnership.
This is something you should probably keep in mind while reading through ISGP‘s next optimistic press release.
