Greenergy Holdings, Inc. (PSE: GREEN)

Greenergy Holdings, Inc. (GREEN, the Company) has its interests in waste management and renewable energy. Currently, GREEN has the following business structure:

MSPI is engaged in development, sales, marketing and logistics of semiconductors products. On August 1, 2011, the SEC approved the increase in authorized capital stock of MSPI but GREEN waived its right to exercise pre-emptive rights in MSPI effectively decreasing their interest down to 39% from 100%.

TWMRSI is engaged in the business of building, operating and managing waste recovery facilities and waste management system within the Philippines. As of September 2012, the Company had already advanced P235 million to TWMRSI in the form of future stock subscription, in other words, it is a cash advance that can be converted to equity. The 235 million cash was used to construct waste recycling facilities (construction in progress). TWMRSI is not yet in commercial operations.

WINSUN was incorporated on June 22, 2012 to engage in renewable energy projects. WINSUN is not yet in commercial operations.

On November 6, 2012, Biomas Holdings, Inc. was incorporated pursuant to the Company’s investment agreement with Cleantech Projektgesellschaft MBH (Cleantech),an infrastructure fund managed by ThomasLloyd Global Asset Management.[1] Cleantech will infuse P425,537,300 cash for 20,776,856,000 shares of GREEN and will be issued the following warrants:[2]

  1. 10,489,500,000 shares at a strike price of P0.02 with 1 year expiry from the issuance.
  2. 10,489,500,000 shares at a strike price of P0.03 with 3 year expiry from the issuance.

The Company on its part shall separately raise fresh capital amounting to P252 million. On October 31, 2012, private placement investors subscribed to GREEN shares amounting to P252 million.

Other Significant Business Development

On August 31, 2011, Memorandum of Agreement (MOA) was executed with Tianjin Tianbo Investment and Development Corporation (TTIDC) for the development of 1,000 MW wind energy project with an estimated investment of at least $1.3 billion within a 10-year period. [3] On March 13, 2012, TTIDC assigned to its affiliate China Power (Tianjin) New Energy Development Co. Ltd. its rights and obligation under the MOA.

On September 14, 2012, GREEN entered into a preliminary agreement with Hydroring Capital BV (“HC”) for the development, operation and management of multiple hydropower projects using the Hydroring concept. The project is subject to financial and technical feasibility and due diligence and the execution of definitive statements. The signing of joint venture agreement is scheduled within 121 days from date of signing of the preliminary agreement or until January 13, 2013.

Disclaimer: I do not claim to be an expert and nothing I say should be taken as a recommendation to buy or sell.

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