For shareholders of Saskatchewan-based Clean Power Concepts, Inc., this month has indeed been a “December to Remember” as the price per share of CPOW has surged since it began trading on a regular basis a few weeks ago. After touching a low of 4 cents early in the month, volume has exploded and taken the price per share with it, touching 52 cents in trading so far today as the month and year are winding down to a close.
The month has been chock full of news including record revenues from its operating subsidiary, General Bio Energy, which operates a fully integrated commercial oilseed crushing, bio-diesel refinery, and environmental lubricants manufacturing and bottling plant which is also capable of nutraceutical and food processing. Other highlights have included General Bio Energy acquiring the rights to significant Licensed Technology patents for use at its production facility, launching the “Spirit of Health” brand of natural consumer products, and General Bio Energy being named as one of Canada’s top 50 emerging growth companies by Profit Magazine.
Today, the Company announced a milestone agreement which marks its entry in the Chinese markets for its crude canola oil. The open-ended agreement, in which Clean Power will supply its crude canola oil to Chongqing Grain Group Company Ltd. of China, opens the door to generate sales in excess of $400 million over the next ten years of the contract, according to the Company.
Under the Agreement, Chongqing was committed to purchase up to 3,000 metric tonnes of crude degummed canola oil from General Bio Energy and ship the oil to China where it will be refined into table-ready, ‘Refined Bleached and Deodorized’ (‘RBD’) oil and marketed under Chongqing’s well-established “Red Dragon Fly Oil” brand. Initially, Clean Power will supply a portion of the product from its own inventory and a portion from third party suppliers until production increases are performed at its own plant. Upon completion of the upgrades in the production facility, the supply will come solely from Clean Power.
Based on present pricing of $1,320 per metric tonne for crude degummed canola oil and shipments equaling 30,000 metric tonnes per year, Clean Power estimates that the value of this new contract to be approximately $40 million annually. It is important to note that Chongqing is actively operating under an initiative to diversify its suppliers and because this agreement has no termination date, the opportunity is there for possible expansion of business with Chongqing in the future as Chongqing has future business strategies which include large food processing zone in the Chong Quing region of China.
This was a great month for Clean Power Concepts as the Company’s business plans are starting to reach fruition. More information on Clean Power Concepts, Inc. and its operations can be found on the Company’s website at www.cleanpowerconcepts.com