As sister companies, we both plan to work together for the benefit of all of our shareholders. VGE has continued to work hard throughout these negotiations, and we should have a business update for our shareholders in the near future.
Marietta, GA (PRWEB) October 03, 2012
The VGE Board of Directors and Management is pleased to announce that the orderly separation of VIASPACE Green Energy (VGE) and VIASPACE Inc. (VIASPACE) has been completed and formal documents have been signed by VGE, VIASPACE and Mr. Sung Chang on September 30, 2012. As part of the separation agreement, VGE has the right to commercially develop Giant King™ Grass in China and Taiwan, and VIASPACE has been granted an exclusive license to commercialize Giant King Grass in the rest of the world outside China and Taiwan. Effective October 1, 2012, VIASPACE no longer has any ownership in VGE and has returned all of the shares it previously held in VGE back to VGE, who subsequently reissued them to Mr. Chang.
The exclusive license that VIASPACE obtained from VGE has revenue milestones that need to be met every two years in order to maintain the license from VGE. VIASPACE will pay VGE an 8% royalty on net sales derived.
Mr. Sung Chang, VGE President, commented: "I am very pleased that the separation of VIASPACE and VGE has been completed. I remain a large shareholder of VIASPACE and sincerely wish both companies success in the future. As sister companies, we both plan to work together for the benefit of all of our shareholders. VGE has continued to work hard throughout these negotiations, and we should have a business update for our shareholders in the near future."
All of the final documents related to the separation are in the process of being filed in a Form 8-K with the Securities and Exchange Commission and will be available at http://www.sec.gov.
About VIASPACE Green Energy Inc.
VGE is a clean energy company providing products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil and high-pollutant energy sources. The Company grows Giant King Grass as a low-carbon fuel for electricity generating power plants, as a feedstock for bio methane production and cellulosic biofuels, and for other low-carbon, renewable energy products. The Company also has a business unit that manufactures quality framed art for retailers in the United States. For more information, please go to http://www.VIASPACEGreenEnergy.com, email to IR(at)VGREF(dot)com or call (678) 805-7472.
Safe Harbor Statement
Information in this news release includes forward-looking statements. These forward-looking statements relate to future events or future performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Such factors include, without limitation, risks outlined in our periodic filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K for the year ended December 31, 2011, as well as general economic and business conditions; the ability to acquire and develop specific products and technologies; changes in consumer and business demand for the Company's products; competition from larger companies; changes in demand for alternative and clean energy; risks associated with international transactions; risks related to technological change; and other factors over which VIASPACE Green Energy has little or no control.