DALLAS, June 23 /PRNewswire-FirstCall/ -- Evolution Fuels, Inc. (Pink Sheets: EVFN) (the "Company") provides the following update as to the status of its current activities and plans for the future.
Alternative Fuels Environment
The recent business climate for alternative fuels based companies has been and remains challenging. Macroeconomic issues reverberating throughout the broader economy in conjunction with microeconomic issues specific to the development of an emerging marketplace for alternative fuels have made it difficult for the company to attract financing and necessary working capital. Additionally, inaction by the Federal Government at the end of 2009 has caused the expiration of the federal biodiesel tax incentive. The tax incentive, which had been in place for five years, is widely viewed as being essential for the ongoing development of the marketplace for biodiesel. While efforts are being made to reinstate the tax incentive, the resulting lag and legislative largess has hobbled the entire industry's ability to make substantive progress.
In spite of these challenging circumstances, management believes that the tide may be starting to turn back in favor of an industry seeking to put the country on a path for the consumption of renewable and sustainable energy sources. The BP Oil spill has thrust this critical issue back into the media spotlight and into America's long-term collective consciousness. The company plans to move quickly to capitalize upon this renewed opportunity to create visibility and infrastructure around its previously developed strategy, core business offerings, and the execution of its business plan.
Evolution Fuels views alternative fuels that may be produced domestically, are in abundant supply, are non-food based, and require minimal changes to existing infrastructure as real solutions to U.S. energy concerns. Fuels such as compressed natural gas (CNG), ethanol made from cellulosic feedstocks, and electricity are examples of such fuels.
The Company's management is currently pursuing potential partners for the supply of cellulosic ethanol and CNG, and plans to provide these alternative fuels at its stations as soon as possible. Additionally, management is diligently working with marketing, public relations, and branding professionals to maximize this timely opportunity even in the midst of challenging economic circumstances.
As a result of these efforts, the company is currently developing new financing opportunities to provide the working capital necessary to execute its strategic plan.
In the near term, management plans to utilize its existing leases and build out one to three prototype fueling stations that completely exemplify the company's long term vision for the 'fueling station of the future'. The existence of these prototype locations will provide management the ability to effectively deliver its marketing message and implement its business strategy of expansion into additional markets.
Upon and during completion of the prototype stores, management will engage in negotiations with previously identified parties to establish significant opportunities for the expansion of Evolution Fuels branded fueling stations.
"Evolution Fuels"-branded fuel stations
Over the past several months the Company has worked to further define its brand strategy and refine the concepts for its roll out of "next generation" fuel stations. The Company envisions Evolution Fuels as a lifestyle brand, a brand that incorporates a broad selection of alternative fuels such as ethanol blends, biodiesel, and compressed natural gas, a store that incorporates recycled building materials and solar power, and sales that incorporate health foods and beverages.
As announced previously, the Company has executed a lease agreement for its first "Evolution Fuels" fuel station located in Dallas, TX. Initial design and environmental work has been completed for this station and management expects construction to commence in July. Evolution plans to open another fuel station, likely in Mississippi, during the month of September.
As part of its strategy to bring more visibility and attention to the alternative fuels industry, the Company intends to develop these initial stations in a manner that far surpasses a typical retail fuel station. These stations will be of the highest quality in terms of aesthetic appearance, functionality, and product offerings.
The Company is involved in a dispute regarding the leasing of certain fuel stations located in Kansas and Arkansas, which were announced earlier this year. The Company is in the process of launching a series of legal complaints against the owner of these facilities for fraudulent inducement and various misrepresentations. The stations are currently not branded or operated as Evolution Fuels stations.
The Company has initiated the distribution of the previously announced dividends of common stock it owns in three entities, with the exception of the distribution of the Evolution Resources common stock dividend. Shareholders may experience delays in their receipt of the dividended shares as a result of several factors, including approval by FINRA for shares held in the Depository and Trust Company, and including the processing of those shares by individual brokers.
As announced on June 2, 2010, the Company has determined that the shares of Evolution Resources, Inc. that it intends to dividend will be done so pursuant to Evolution Resources, Inc. filing a registration statement. Upon the effectiveness of the registration filing, such shares shall be distributed and shall be free trading, without any restrictive legend.
About Evolution Fuels, Inc.
Evolution Fuels, Inc. endeavors to market renewable transportation fuels at retail fuel stations that will provide superior quality fuels to competing fuel stations by virtue of the blending capability within the fuel dispensers at its stations and offering the blends at competitive prices. The stations will offer ethanol/gasoline blends of fuel including 10% ethanol/90% gasoline (E10), 20% ethanol/80% gasoline (E20), 30% ethanol/70% gasoline (E30), and 85% ethanol/15% gasoline (E85). The latter three blends are intended for flex-fuel vehicles, although recent studies have shown that many legacy vehicles on the road today may use E20 and E30 blends without incurring damage to the engines or fuel systems. The Company's plan calls for the development of a chain of renewable fuel stations in the southwestern and southeastern United States that will be a combination of "Evolution Fuels"-branded fuel stations/convenience stores and western-motif truck stops modeled after Willie's Place Truck Stop in Carl's Corner, TX. The Company's Web site is www.evolution-fuels.com.
Forward-Looking Statements Disclosure
This press release may contain "forward-looking statements" within the meaning of the federal securities laws. In this context, forward-looking statements may address the Company's expected future business and financial performance, and often contain words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," "will," and other terms with similar meaning. These forward-looking statements by their nature address matters that are, to different degrees, uncertain. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can provide no assurances that these assumptions will prove to be correct. In connection with the "safe harbor" provisions of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, important factors that, among others, could cause or result in actual results and experience to differ materially from the Company's anticipated results, projections, or other expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements, risks, and uncertainties, and by reference to the underlying assumptions.
SOURCE Evolution Fuels, Inc.