Thursday, December 27, 2007

Martin Tobias Steps Out of Imperium

On the way out last week this Imperium Renewables Press Release came across my email. (Also check out the CNet article as well as the Seattle Post Intelligence article)

It was a pretty big surprise to everyone which just drives gossip from every side of the industry. Truthfully I wasn't even thinking about work at all over the holiday. It didn't even strike me as relevant to post this news until a friend from the east coast asked about it.

My thoughts. Imperium has a pretty strong wind to its back. This leads me to wonder if this is a positive thing for Imperium as they move forward to their Initial Public Offering. A strategic restructuring to move forward.
A review of Imperium Renewables fortunes:

1) Imperium has lined up a few long term supply agreements (guaranteed off take and quantifiable cash flow).

2) Imperium has lined up a reasonable amount of oil supply from both Canadian canola and Pacific palm farmers (reasonably assured feedstock with a large leveraged buying position).

3) They have a large terminal in the tightest fuel supply region of the US with a mandated biodiesel blend coming in both Oregon and Washington (guaranteed market for their product with a low cost and higher volume capital infrastructure than any other biodiesel producer next to REG).

In short on a fundamental basic of business level they are sitting pretty. They just need to sell a boat load of stock to give them enough operating cash flow to grow as promised.

I think it would be hard for much of anything to be bad news for what they are doing. Regardless of which token, rockstar, legendary executive is their CEO. We will just have to wait and see.

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