Evergreen Energy keeping financing options open, considering asset sales, CEO says

By Jennifer Lanning Drey

Portland, Ore., April 5 - Evergreen Energy, Inc. is keeping open the options of raising additional financing or drawing down on its universal shelf, Thomas Stoner, chief executive officer of Evergreen, said Monday during a conference call held to discuss its year-end results.

Evergreen also continues to evaluate potential sales of its assets that could generate cash proceeds, he said.

The company expects to burn about $1.5 million per month until its K-Fuel and GreenCert technologies begin producing sales in the second half of 2010.

Evergreen had $2.2 million of cash at Dec. 31.

The company has since completed a financing deal in January that resulted in net proceeds of $8 million and completed another financing transaction in March for net proceeds of $5 million.

Additionally, Evergreen reached an agreement in mid-March to sell certain assets of both Buckeye Industrial Mining Co. and Evergreen for $32.9 million. The amount includes the release of $5 million of cash reclamation bonds.

The sale closed on April 1 and the proceeds were used to retire its outstanding 2009 notes, pay transaction fees and for general corporate purposes, Stoner said.

Focus on K-Fuel, GreenCert

Regarding Evergreen's path forward, Stoner said the company's focus will be on developing K-Fuel and GreenCert, its two proprietary technologies.

Evergreen is working toward a definitive agreement to begin construction of a K-Fuel plan in inner Mongolia through its joint venture with a large Chinese integrated utility and chemical manufacturer, he said.

Also during the call, Stoner noted that the company is likely to include a reverse split in its 2010 annual proxy due to a covenant included in its 2007 notes that requires Evergreen to be listed on a national securities exchange or quoted on an established automated over-the-counter trading market.

If Evergreen is unable to meet the requirement, the noteholders could put the $27.4 million par value to the company, which it could not pay right now, he said.

Evergreen Energy, based in Denver, refines coal into a cleaner solid fuel. Its subsidiary C-Lock Technology, Inc. is an energy technology company.

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