One of the Company's Chief Puff writers, Dan Hamilton, penned a puff piece which, to the uninformed, makes it look like the company can just run out and get an eight billion dollar loan to build a plant.
From Puff, the Magic Newscaster:
"The real answer is much more complicated. Depending on the reactor, the finished project, likely on a 5,000 acre piece of property outside Payette, will cost between $5 billion and $8 billion. This is an investor-driven operation, at least in the beginning, and paying for it will require a couple different methods, or phases. These are the reasons investors continue supporting AEHI, because they’ve learned there is no downside to nvesting in a nuclear power plant. Phase one will require about $100 million to pay for land, water, engineers, lawyers and applications. Last summer AEHI announced an agreement with an investment group to fund $70 million worth of the project and now we have several large international investors also interested.
Phase two takes place after AEHI receives local and federal approval; once approved, the property will increase in value to about $1.5 billion. The land then becomes an asset used to borrow $5 billion to $8 billion for construction. No loan payments are expected until the plant is operational, and once running at full capacity, it will create about $3 billion annually in reliable profits for 60 years. These projections create a very attractive loan for most lenders. Making this even more attractive, and much less risky, is a federal loan guarantee, which insures loan repayment up to 80 percent its original value. You can read more about this program on the Nuclear Energy Institute’s website: http://tinyurl.com/financingnuclearpower. This is also a program many senators are trying to expand."
Well, Dan Burgundy, the real answer is much more complicated than your childlike puff piece makes it out to be. In fact, a real nuclear power construction company has a handy presentation on how financing of nuclear plants really works. Puff Burgundy's plan as outlined above doesn't even come close to addressing the hurdles listed there. But let's play in Dan and Don's imaginary world for a minute and assume there is a multibillion dollar payday loan company somewhere in the world ready to shell out $8-10 B for this "project".
What makes a loan attractive to most lenders? The ability of the borrower to repay the loan. Ability to repay comes from producing revenue in excess of expenses. Likelihood of a company to succeed is based on its ability to accomplish its goals. What will these lenders be looking at to decide whether to loan the company money? Its track record. So, for your perusal, here is a comprehensive list of the many accomplishments failures of Alternate Energy Holdings, Inc., since its spinoff from the Stabilized Rice Bran Multilevel Marketing Company, Nussentials Holdings, Inc, in 2006. These are all either things the company stated it would do in its press releases, or are regulatory requirements, or are things any good business would do if its CEO with 45 years of experience contemplated earning profits for shareholders, which is the purpose of a corporation, and makes it possible for the company to make payments on its loans.
1. Buy struggling nuclear plant in SW and turn it around-2007. FAIL
3. Pay $50 and renew business registration for Grace Glens Consulting FAIL
4. Obtain patent on lightning harvesting technology FAIL
5. Bring lightning farms on line FAIL
6. Develop and install 'urban mini-reactors' FAIL
7. Develop CO2 extraction technology FAIL
8. Develop and patent ethanol fuel additive FAIL
9. Buy 4000 Acres in Owyhee County for new nuclear plant from scratch FAIL
10. Obtain financing before optioning site FAIL
11. Obtain building permits before constructing towers on site FAIL
12. Ensure zoning is not at issue when considering alternate site FAIL
13. Obtain financing from Silverleaf Capital Investments FAIL
14. Obtain financing from Cobblestone FAIL
15. Finalize Memorandum of understanding with UniStar FAIL
16. Obtain financing from Korea FAIL
17. File SEC 10-Q for quarter ending on Sep 30th by due date of Nov 15th FAIL
18. Include relevant ongoing lawsuit information covered in filing period FAIL
19. Wait to settle on propsed site till zoning question is finalized FAIL
20. List alternate sites and options to maximize chances of success FAIL
21. Follow NRC site selection criteria in choosing potential sites FAIL
22. Use least complicated and contentious method of getting plant site approval FAIL
23. Generate a profit in 2006. FAIL
24. Earn any revenue at all in 2006. FAIL
25. Generate a profit in 2007. FAIL
26. Earn any revenue at all in 2007. FAIL
27. Generate a profit in 2008. FAIL
28. Earn any revenue at all in 2008. FAIL
29. Generate a profit in 2009. FAIL
30. Earn any revenue at all in 2009. FAIL
31. Generate a profit in 2010. FAIL (So far)
32. Minimize expenses while operating at loss FAIL
33. Locate HQ in county during contentious rezone debate FAIL
34. While spending shareholder money, at least bring economic benefit to proposed county FAIL
35. Ensure case has merit before filing suit to silence criticism FAIL
36. Prevail in court in spite of filing meritless case FAIL
37. Research NRC siting requirements before telling public acceptable sites do not comply FAIL
38. Amend original 10-12g SEC filing to remove reference to coal plant option FAIL
39. Tell the truth when asked about filing amendments FAIL
40. Buy site in Colorado FAIL
41. Engage with Powered Corporation to build plants in developing nations FAIL
42. Obtain financing FAIL
43. Use NRC approved reactor design FAIL
Would you invest your money in a company with this track record? Would you loan your money to a company with this track record? Would you let a former newscaster tell your prospective investors how financing works?
Maybe they should try Craigslist.
Or maybe they did.
An unauthorized collection of the records of Alternate Energy Holdings, inc., its principals and subsidiaries, and their antics, trials, and tribulations
Quick Links and Resources
- Idaho Samizdat Article on Amended SEC Complaint
- Roanoke, VA News on AEHI
- Latest Idaho Samizdat Article on AEHI
- Betsy Russell's Eye On Boise Story on AEHI
- Feb 1, 2011 AP Story in Statesmsan on New SEC Docs
- Randy Stapilus on the Hearing
- Boise Weekly Article
- Streetsweeper- Alternate Energy: Power Stock or Toxic Waste?
- Streetsweeper- AEHI The Story, the Holes, and the Secrets They Hide
- Streetsweeper- Alternate Energy: Another Radioactive Stock Pick?
- Another Blog About AEHI Spin
- OTC Info Page [Link recently removed from AEHI webpage]
- AEHI Facebook Page
- AEHI Documents with Payette P and Z Commission
- Idaho Repository (Court Case Search)
- Securities and Exchange Commission AEHI filings