Nuke Plant Developer’s New Funder Has Shaky Financial Past
Snake River Alliance News Release
July 16, 2008
Contact: Andrea Shipley
(208) 344-9161 (office)
Email: [email protected]
The Texas-based energy company selected by an Idaho nuclear power plant developer has no history of developing power plants and last year saw its nuclear plant contract with the government of Yemen cancelled because the government didn’t think it was up to the job.
Alternate Energy Holdings, Inc., which claims it plans to build a 1,600MW nuclear plant near the Snake River in Elmore County, announced last week it signed an agreement with Houston-based Powered Corporation “To form a new company to jointly develop nuclear reactors worldwide, including Idaho’s first commercial nuclear reactor,” AEHI said in its news release. “Assuming successful due diligence, the agreement is to be finalized in the coming months. Powered will contribute international energy leadership and initial funding, while AEHI will contribute its nuclear expertise and management team, including Don Gillispie as CEO.”
This isn’t the first time AEHI has touted a big investor for its nuclear scheme. Last August, it claimed Cobblestone Financial Group, a small New York investor that specializes in small commercial businesses, provided a letter of intent to fund the multibillion-dollar nuclear plant. The money never came. Then last December, AEHI issued another news release claiming Silver Leaf Capital in Salt Lake City had pledged $150 million. Still nothing. Then AEHI pulls up stakes in Owyhee County and hauls its Nomad Nuclear Plant proposal 15 miles upstream on the Snake River and foists it on Elmore County. Now AEHI rolls out yet another company with an inactive web site, a failed foreign nuclear venture, an ominous financial history, and apparently little money to bring to AEHI’s nuclear misadventure.
“The people of Idaho have heard this all before, and they have done the due diligence that AEHI apparently has not, so they’re rightly skeptical any time AEHI and Mr. Gillispie trot out another so-called financial investor,” Snake River Alliance Executive Director Andrea Shipley said. “AEHI’s latest pronouncement of financial support for this power plant should be treated with the credibility it deserves – none. In fact, Powered Corporation’s financial health seems to be on par with that of AEHI, which is now under an investor warning from the penny stock market where its stock trades. The fact is, there is still no money behind this project, and for good reason.”
As for Powered Corporation (www.poweredcorp.com), AEHI claims the company is “An international energy company based in Houston, Texas, dedicated to developing new, safe, affordable and environmentally friendly energy complexes to power the future in developing countries around the world. The company has active international interests in electric energy and exploration and production of oil, gas and other minerals.”
“Did AEHI seriously think the people of Idaho would not check this company out, just as they have checked out AEHI?” Shipley said. “This company is no more able to finance the costs for AEHI’s next “public meeting” than it is to finance a nuclear power plant.”
According to the most recent filing (a July 2007 prospectus summary) by Powered Corporation on the SEC Info website (http://www.secinfo.com/d12Pk6.udPm.htm) the company listed a litany of “risk factors” that investors should know about before investing in the company. The company’s statements include:
– “We will need to raise sufficient funds to finance our activities. We may not be able to achieve or sustain profitability.”
– “We will require additional capital resources in order to conduct our operations. We expect that our available cash and contributions from our directors and officers will be insufficient to finance our planned activities beyond 2007.”
– “We do no t currently maintain insurance against any potential losses or liabilities arising from our operations.”
– “Absent raising additional capital or entering into joint venture agreements with larger businesses, we will not be able to increase the scope of our activities.”
– “As of March 31, 2007, we had cash on hand of $33,404 and cash held by officer (sic) of $1,487,390.
– “We had a net loss of $30,963,916 in the three months ended March 31, 2007 compared to a net loss of $172,358 in the three months ended March 31, 2006.”
– “If we cannot obtain additional financing, we may have to curtail operations and may ultimately cease to exist.”
– “We have a substantial accumulated deficit. We may not be able to meet our debts as they become due. If we are unable to generate sufficient cash flow or obtain funds to pay debt, we will be in default.”
“The list goes on,” Shipley said. “This is supposed to be the company that’s going to pay for Mr. Gillispie’s nuclear plant – a power plant that the people of Elmore County do not want?”
Powered Corporation’s most celebrated nuclear venture, a $15 billion deal to build five nuclear plants in energy-starved Yemen, blew up last year when Yemen cancelled the deal on grounds it didn’t believe the company could perform.
Meanwhile, here in the United States, the exchange on which AEHI’s stock is traded continues to post a cautionary “Stop – Pink Sheets No Information” on the company’s listing page. According to Pink Sheets.com (http://www.pinksheets.com/pink/quote/quote.jsp?symbol=AEHI#getQuote), such a listing “Indicates companies that are not able or willing to provide disclosure to the public markets – either to a regulator, an exchange or Pink OTC Markets. Companies in this category do not make current information available via the OTC Disclosure and News Service, or if they do, the available information is older than six months. This category includes defunct companies that have ceased operations as well as ‘dark’ companies with questionable management and market disclosure practices. Publicly traded companies that are not willing to provide information to investors should be treated with suspicion and their securities should be considered highly risky.”
“If Mr. Gillispie and his company are not ready to present a serious proposal to the people of Idaho and Elmore County, they should do everyone a favor and shut things down and come back if and when they get their house in order,” Shipley said. “A nuclear power plant is far too important to be considered when its developer lacks the resources to buy the property or file the required paperwork for local and federal approval. And just as important, the very way of life for the people of Elmore County is not something to be trifled with.”
The Snake River Alliance has a long history of advocating for the cleanup of the radioactive legacy from the Cold War at the Idaho National Laboratory and protecting the Snake River Aquifer that lies underneath the contamination. It also advocates clean energy alternatives to nuclear and fossil fuel power generation.