VIASPACE Inc. has announced the purchase of a controlling interest in Inter-Pacific Arts Corp. (Inter-Pacific). For 2007, Inter-Pacific earned $5 million in unaudited revenues which will now add to the strength of VIASPACE’s balance sheet. Additionally, the strategic Inter-Pacific acquisition makes VIASPACE a player in the production of hybrid, high yield grasses in China. Inter-Pacific holds a license to grow and sell China Giant King Grass in that country.
Giant King Grass has value both as animal feed and as a component of biofuels. The Grass grows very quickly, up to twelve feet in height in as little as two months, and can be harvested 4 times a year in hot climates. Globally, both the biofuels and animal feed markets are expected to increase in size over the coming years. These markets are growing quickly inside China as well. Based on the anticipated demand, VIASPACE expects the biofuel and feed businesses will produce significant revenue for Inter-Pacific. VIASPACE views the expansion of these product lines as a key part of its bid to become profitable.
“The acquisition of Inter-Pacific opens up exciting growth opportunities for VIASPACE and creates multiple new revenue streams. By leveraging the profits from its established, revenue-positive consumer products line to fund rapid expansion of the grass venture we can develop a self-sustaining business with tremendous value for shareholders. With the projected growth in the high-yield grass business combined with the projected profits from the established consumer products line including other VIASPACE business units, we believe that VIASPACE will be profitable in 2009,” said Dr. Carl Kukkonen, VIASPACE’s Chief Executive Officer.
VIASPACE was formed in 1998 and has close links to NASA’s Jet Propulsion Laboratory and the California Institute of Technology, attempting to capitalize on patents and software licenses from the school. VIASPACE also focuses on alternative energy products and green technologies. Along with its Giant King Grass license, Inter-Pacific and its Chinese affiliate produce, import, and market artwork in U.S. retail stores.
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