Since 2008, VSPC shareholders have been told by the CEO that millions of dollars in revenues were expected to come from a fast growing grass they called Giant King Grass (GKG). After years of hype and only a few thousand dollars in sales, the company announced last week that they defaulted on the note that they had with their largest shareholder, which was secured by the rights to the grass.
Developed as animal feed according to the company, GKG also has several applications as an alternative fuel source. The CEO, Dr. Carl Kukkonen, has made numerous presentations worldwide over the past few years marketing GKG as the highest yielding crop on Earth, and that was why the grass was suppose to be so attractive to the alternative energy industry. Prospective clients toured their 200 plus acre plantation in China, and according to Dr. Kukkonen, "seeing was believing." Too bad no one ever believed except shareholders.
The license to the grass was also secured by a 75% stake in VIASPACE Green Energy (OTCPK:VGREF). It appears that VGREF shareholders may reap the rewards VSPC shareholders believed for years would occur as the plantation was recently upgraded and grass pellets are now being produced.
Recent press releases from the company are somewhat vague, but one thing is clear, VSPC defaulted to it's largest shareholder. Dr. Kukkonen, co-founder of VIASPACE, remains the CEO of VIASPACE Green Energy as well as VSPC.
Conflict of interest?
It's a bitter dose of reality for VSPC shareholders who saw the stock hit an all time low last week, while the company hinted talks could be re-opened. How cruel.