Share prices for green-friendly resource development corporation GS Carbon Corp. (OTCBB: GSCR) shot up this morning, going up more than 100 percent after market open to drop down to 60 percent over opening price by mid-morning.The source of the jump? The announcement that equity investment company Seaway Capital Inc. is looking to acquire GS Carbon seems to be the cause. According to the latest press release from GS Carbon, Seaway Capital has “executed amended definitive agreements to acquire GS Carbon Corp. … from its controlling shareholder, GreenShift Corporation.”
While the news isn’t necessarily new – GS Carbon essentially said the same thing on May 14, 2007, when the company released news about its corporate restructuring – it’s apparently fascinating enough to push the company’s stock from 2 cents a share to 6 cents a share, then to 3 cents a share later on.
According to today’s press release, Seaway intends to “merge or to have acquired” GS Carbon into several of its holdings as soon as the transaction is completed on June 30.
There’s no mystery behind why Seaway chose to acquire the company. Although GS Carbon’s share price history has been rocky at best – the stock has only reached as high as 6 cents a share the entire year – the company nonetheless has a lot going for it. As fears about impending environmental problems continue to mount, and with more and more energy and resource industries looking to improve their images by jumping on the green energy bandwagon, it’s not surprising that small environmentally friendly companies like GS Carbon are grabbing investor’s attention.
Another thing that probably piqued Seaway’s interest was the restructuring that GS Carbon’s parent company, GreenShift Corp., had been pursuing in the past several months. In April, the company announced it would merge fully with its subsidiaries GS CleanTech and GS Carbon to reduce operational overlap among employees and confusion among customers, provide its employees with a “unified vision” of the company, and increase the management’s ability to focus on earnings and creating value for its shareholders.
In fact, it was this restructure that prompted GS Carbon to agree to Seaway’s offer.
“One of the goals of our planned reorganization is to reduce overhead while we simplify and rationalize our corporate structure,” Kevin Kreisler, GreenShift’s chairman and CEO, said in the release. “We feel that transferring ownership of GS Carbon’s current holdings to GS CleanTech and then assisting GS Carbon in its completion of a material acquisition away from Greenshift helps to accomplish this goal in a way that enhances shareholder value for Greenshift’s, GS Carbon’s and GS CleanTech’s shareholders. Seaway has an experienced management team with a track record for finding and cultivating successful investments and creating value for its shareholders.”
