AEHI Files Gloomy Report to Feds

Snake River Alliance

For Immediate Release
August 14, 2009
Contact: Andrea Shipley: (208) 344-9161 or (208) 514-8713

Alternate Energy Holdings, Inc., the developer of a proposed nuclear reactor in Elmore County on Snake River farmland, filed its Form 10-Q with the U.S. Securities and Exchange Commission Friday, and the report paints a grim picture of a company in obvious distress just a week after it announced it’s looking for another county or even state lands for the project.

The company reached two big milestones, according to the SEC filing: It has now issued more than 100 million shares of stock (but has only $138,000 in cash or cash equivalents on hand to show for it), and it has run up a total deficit since coming to Idaho of $10.1 million. The report included this gloomy prognosis:

“We do not have capital sufficient to meet our cash needs. We will have to seek loans or equity placements to cover such case needs. Once exploration commences, our needs for additional financing is likely to increase substantially. No commitments to provide additional funds have been made by our management or other stockholders. Accordingly, there can be no assurance that any additional funds will be available to us to allow it to cover our expenses as they may be incurred.”

Snake River Alliance Executive Director Andrea Shipley said AEHI’s filing was not unexpected.

“This company is in no condition to be shopping its alleged nuclear reactor around Elmore County or anywhere else in Idaho,” Shipley said. “Today’s filing shows AEHI lacks the financial resources, the hope of any resources in the future, and most important the credibility to be running around Idaho peddling a reactor scheme that nobody believes will ever be built.”

In a related item, Idaho Sen. Mike Crapo was quoted in the Twin Falls Times News as saying AEHI CEO Don Gillispie may have been too enthusiastic in characterizing the senator’s pro-nuclear comments as quoted in an AEHI release. AEHI said Sen. Crapo’s response to a radio call-in question suggested Elmore County residents should pressure the County Commission to approve AEHI’s rezoning request (last week we reported on the State Department of Lands refuting Mr. Gillispie’s claim that the state had offered AEHI lands for the reactor). Here’s what the Times News reported on Sen. Crapo’s comments and AEHI’s backpedaling off its news release:

“While AEHI’s release interpreted Crapo’s remarks as a “boost” to the company’s efforts, Crapo disagreed slightly with such an interpretation on Thursday, telling the Times-News that he was trying to speak more to the role citizens play in local control than advocate for one specific plant.

“I think they kind of took it – they took it another step, I think,” Crapo said.

The senator also backed off from his statement about whether Elmore County residents support the plant, saying he’s received “sporadic” comments about the matter but not enough to be able to say firmly whether residents support the idea.

“It has not been all one-sided,” Crapo said.

AEHI representatives did not return calls from the Times-News on Thursday. CEO Don Gillispie stated in the press release simply that “Senator Crapo continues to show strong support for commercial nuclear power in the U.S. Senate and in Idaho while understanding the importance of local control in nuclear plant siting.”

AEHI’s SEC 10-Q can be found at: http://www.sec.gov/Archives/edgar/data/1421874/000106594909000146/aehi10qjune09vfinal.txt