Economic and Financial Analysis

Because our projects use renewable feedstocks, coupled with the fact that the process is “low or carbon negative,” BFI has a significant competitive advantage over conventional diesel derived from refining non-renewable crude oil. Depending on the feedstock and oil markets, double-digit ROIs and single-digit paybacks are achievable with­out the need for government incentives to make the numbers work

With production costs for diesel fuel in the $1.50-$1.75 per gallon range, EBITDA proformas on identified projects suggest an unlevered IRR of 11% for a 20 year project life, using conservative assumptions for market values and capital & operating costs.

Funding

Venture Capital Options

A comparison of Private vs Public capital for the development and growth capital curves.

Graph is courtesy of TSX in their Brochure “Guide to Public Venture Capital”
Note: Early stages of project are usually covered by “Friends and Family” and follow-on funding by “angel investors” vs the private venture capital. Recent trends are indicating that private venture capital groups are funding later state projects that are showing revenue and are looking for growth capital.

Links

Nasdaq Capital Markets listing requirements ( Dec 2007)
http://www.nasdaq.com/about/nasdaq_listing_req_fees.pdf

Pinksheets (exchange service … not an stock exchange)

  1. Categories (uncertainty = low trade volume)
    http://www.pinksheets.com/pink/otcguide/categories.jsp
  2. Stock Trades flow charts:
    http://www.pinksheets.com/pink/otcguide/issuers_know.jsp
  3. FAQhttp://www.pinksheets.com/pink/faq.jsp#issuer

OTCBB Rules of the Road
http://www.otcbb.com/aboutOTCBB/rulesindex.stm

Securities Act of 1933
http://www.seclaw.com/secrules.htm

General Links:
http://www.seclaw.com/centers/linkcent.shtml