Business, like life, is a journey. Now having completed the extremely lengthy regulatory review, the Alliance journey continues as management and the Company’s consultants work toward completing the required financing for construction of an Alliance commercially operated “waste to energy” processing facility. Once constructed and operating, this facility will also act as the Company’s showcase. Over the coming weeks, the Company will be introduced to several groups that have expressed an interest in the Company’s business. During discussions with these parties, management and the Company’s consultants will share our vision of the Alliance business with these investment groups.
Our vision has remained consistent regardless of the regulatory delays associated with moving the Company into the public domain and ultimately, getting approved for trading. The business of the Company, outlined further on this web site, continues to be the development of a network of “waste to energy” processing facilities in specific US jurisdictions. These facilities, will utilize a chemical reaction to process various forms of rubber waste, including scrap tires, into a fuel oil that can be stored and subsequently consumed for the production of electrical energy to satisfy peak demands.
The ability to utilize rubber waste as an alternative source for a fuel oil that can be used to make electricity, reduces natural gas consumption and will contribute to assisting in the reduction of America’s dependence of imported oil and conserves valuable energy resources. The Company remains committed to “saving America’s energy resources” and our business expansion will always be with a view towards harnessing energy from waste streams in a way that will have a positive impact upon our environment.
Densely populated areas in the US generate vast quantities of rubber waste, including scrap tires. Many of these jurisdictions export their waste into other municipalities or other states. The financial cost of trucking rubber waste to points of final disposition combined with environmental impacts and roadway wear ensures that in many jurisdictions there is an opportunity for community based solutions to deal with rubber waste. A solution that also can provide community based electrical generation to assist with meeting peak demands is of great interest in many jurisdictions.
This is particularly so as many communities are paying as much as a 34% premium for their electricity as a result of “transmission congestion”. Simply speaking, transmission congestion occurs when electrical demand out strips a utility company’s ability to deliver the required electricity on its transmission lines. As a result, utilities are frequently required to contract delivery with competitors and the additional cost is passed along to the consumer. So community based power generation effectively deals with transmission congestion particularly during periods of peak demand. Several publications, including the New York Times, have reported on the cost to consumers of transmission congestion in specific US communities.
If you combine the Alliance ability to provide points of final disposition either in or immediately adjacent to metropolitan centers that generate vast quantities of rubber waste, with the ability to recover a fuel for electrical power generation thereby saving America’s energy resources, the Alliance process may likely be the highest and best possible use for America’s rubber waste. Certainly, the current government focus on energy alternatives and conservation efforts helps drive the Alliance potential.
The Alliance business potential was reviewed by Resource International, an engineering firm based in Ashland, Virginia and was included in an “Estimate of Value Letter”. This third party Valuation, based upon the Company’s potential on a going forward basis, was filed on June 30, 2006 with the SEC, as a “Form 8-K” and is available for review on the SEC web site. The Estimate of Value, based upon the proposed Alliance operations and highly discounted sales assumptions, provided both a best-case and worst-case scenario to establish the value the Company.
By using the “Investor Relations” link, and then the “Financial Information” link, and finally the link “Filing of preliminary prospectus (SEC Edgar)” you will arrive at the SEC web site. In the “Form” column is the “8-K”. The “”html” link will take you to a “Table of submitted documents” where in item #2 can be found the “Estimate of Valuation Letter”. All additional related documents are also available for review and are listed in the “Table of submitted documents”.
It is the Company’s opinion that various funding groups will share our vision and want to invest in the Company’s future. In the forthcoming weeks, we will commence discussions with pre-qualified funding sources. As previously mentioned, from the federal administrations perspective, energy alternatives and new forms of energy are a high priority. The Alliance potential is obvious.
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