EVERGREEN ENERGY INC Reports Operating Results (10-K)

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Mar 14, 2011
EVERGREEN ENERGY INC (EEE, Financial) filed Annual Report for the period ended 2010-12-31.

Evergreen Energy Inc. has a market cap of $58.93 million; its shares were traded at around $3.12 with and P/S ratio of 1.16. Evergreen Energy Inc. had an annual average earning growth of 48.5% over the past 10 years.

Highlight of Business Operations:

During 2010 and through February 2011, we have executed on a number of our strategic objectives. On February 1, 2011, we completed a private placement of 6.2 million shares of our common stock and 12.0 million warrants to purchase our common stock, resulting in approximately $15.99 million in gross proceeds and $14.6 in net proceeds, after the offering expenses. See further discussion in Item 7Management's Discussion and AnalysisLiquidity and Capital Resources.

On February 1, 2011, we and Buckeye entered into a Forbearance and Settlement Agreement (or, the Settlement Agreement) with certain holders of our 2007 (or, the Settling 2007 Noteholders) and former holders of our 2009 Notes (or, the 2009 Noteholders). The Settlement Agreement provides for the direct redemption of approximately $14.1 million in aggregate face value of 2007 Notes currently held by the Settling 2007 Noteholders to us, in exchange for the following: (i) the payment of approximately $6.76 million in cash to the Settling 2007 Noteholders; and (ii) the issuance of warrants to the Settling 2007 Noteholders for the purchase of up to 531,250 shares of our common stock at an exercise price of $7.20 per share. The Settlement Agreement also provides for the 2009 Noteholders to purchase $3.2 million of 2007 Notes from the Settling 2007 Noteholders for $1.6 million. The $3.2 million of 2007 Notes purchased by the 2009 Noteholders will be exchanged by us for a new one year, $1.6 million, 7% note, convertible into shares of our common stock at the market value of the shares on the date the exchange is to occur and 200,000 warrants to purchase our common stock priced on the date of the exchange. This agreement also calls for the dismissal of the litigation that is now pending between us, Buckeye, the Settling 2007 Noteholders, and the 2009 Noteholders, which arose out of the sale of certain assets of Buckeye and of Evergreen, which we refer to as the "sale of Buckeye." See further discussion of these transactions in "Risk Factors" and Item 7Management's Discussion and AnalysisLiquidity and Capital Resources.

cash purchase price of $2.0 million of which $500,000 will be paid at closing with the remaining $1.5 million to be paid pursuant to a secured two year note. Also, the buyer will pay additional amounts in connection with the transfer of all of the reclamation bonds pertaining to the sold property, currently totaling $5.2 million, pursuant to a secured one year note. The due diligence period has ended and the transaction is expected to close in first quarter of 2011; such closing is subject to customary closing conditions. Proceeds of the sale will be used for general working capital purposes. See further discussion below in "Business HistoryOther."

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