Vega Biofuels Inc (OTCMKTS:VGPR) Comes Up With Yet More News

Vega Biofuels Inc (OTCMKTS:VGPR) issued a press release yesterday and doesn’t it sound optimistic. The announcement hit the wire about 12:30 PM and it said that the company has received a huge bio-coal purchase order.

Apparently, an Austrian company called ECEM Salzburg Energy and Environment Consulting GmbH will buy as much as 50,000 tons of VGPR‘s revolutionary renewable fuel over the next five years. The press release contains quite a lot of details.

VGPR told us that the expected revenues coming from the order could amount to $57 million. They also described the shipment process and talked at some considerable length about bio-coal’s properties. Naturally enough, they also announced that the products will be manufactured in their South Carolina plant, but they somehow forgot to mention when the said facility is scheduled to be completed.

In fact, if you need this information, you’ll have to spend quite a lot of time looking for it. As you probably know, the aforementioned plant is being built by a Joint Venture which was formed by VGPR and a company called Agri-Tech Producers, LLC. If you go to Agri-Tech’s website, you’ll see that they expect to have the facility opened “in early 2015“.

Judging by VGPR‘s financial situation, this deadline might prove to be a bit ambitious. The latest quarterly report tells us that on March 31, Vega had:

• current assets: $31,913 in cash
• current liabilities: $185 thousand
• NO revenue since inception
• quarterly net loss: $36 thousand

As you can see, VGPR don’t really have a lot of money to invest in the project, but according to Joe James (Agri-Tech’s President), that’s not really a problem. We read in his LinkedIn profile that “funding has now been committed and the plant is scheduled to open in Q4 2014 or Q1 2015“.

VGPR have yet to confirm this, but the shareholders have at least something to hope for. And while they’re at it, they might want to consider one more thing.

If you take the time to go through a few of VGPR‘s filings, you’ll see that between March 31, 2013 and March 31, 2014, they issued a total of 232 million shares of common stock and you’ll also note that during the first quarter of 2014, they raised the number of authorized shares from 950 million to 2 billion. The company profile at OTC Markets’ website suggests that the printing press is still working overtime. According to it, the O/S count on May 1 stood at well over 1.3 billion.

VGPR are not too specific on who and why got the newly printed stock, but the heavy dilution could result in an extremely unpredictable performance during the next few months. That’s why, considering the risks carefully and avoiding overinvestments is absolutely essential.

Advanced Cell Technology, Inc. (OTCMKTS:ACTC) also had a positive session yesterday. Some new appointments to the management team resulted in an 11% jump and a dollar volume of around $1.6 million. Tranzbyte Corp (OTCMKTS:ERBB), on the other hand, slipped and wiped out a tenth of its market cap while shifting more than $1.3 million worth of shares.