BALTIMORE, MD -- (Marketwired) -- 08/23/13 -- Goldman Small Cap Research, a stock market research firm focused on the small cap and microcap sectors, has issued a research update on BluForest, Inc. (OTCQB: BLUF) an early stage carbon offsets marketing and renewable energy company projects focused on reforestation.
BluForest has exclusive ownership of the rights to the El Juval property in Ecuador. This property consists of 135,000 hectares of pristine forested lands in Ecuador, on the border between the province of Monora Santiago and the provinces of Azuay, Canar and Chimborazo. Approximately 90% of El Juval belongs to the territory of Sangay National Park.
In the Goldman Opportunity Research update on the Company, analyst Rob Goldman provides an overview of the LOI's key points and the factors behind his investment thesis.
"Earlier this month, BluForest announced that it signed a LOI with Global Fuel Limited for the pre-purchase of two tons of carbon credits per hectare per year owned by BluForest Inc., commencing September 2013. This proposed transaction seeks to execute the shipment of carbon-free or carbon-neutral oil, via the pre-purchase of carbon credits.
"Under the terms of the LOI, BluForest will assign a first priority lien to the property held in assets of BluForest Inc. in Ecuador known as 'Hacienda Juval' consisting of 105,000 Hectares. According to the Company, the prospective partner has already examined the appraisals and audits of BluForest Inc.'s property. If the deal were to close as currently structured, management believes it could be worth $12M in annual revenue to the Company, thus monetizing these assets for the first time.
"It should be noted that there are penalty clauses should BluForest fail to deliver or make a repayment as defined in the signed General Security Agreement, with Global Fuel Limited earning the right to attach the herein mentioned assets in priority, without dispute. However, as this is an LOI, terms are subject to change.
"Our investment thesis that BluForest could become a major player in the sale of verified carbon offsets through reforestation is largely based upon the Company's balance sheet. BluForest carries the Ecuador property on its books at a $695M estimated value, as per its most recent filing. The value assessed this property was prepared by a noted 3rd party appraiser and approved by an SEC sanctioned auditor. We look forward to the pending closing of the LOI so that more color can be provided on its financial prospects and the present tangible value of the property."
To view the BluForest update, initiation of coverage report and its associated disclaimers and disclosures, or to download the update in its entirety, please visit www.goldmanresearch.com.
About Goldman Small Cap Research: Led by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces sponsored and non-sponsored small cap and micro cap stock research reports, articles, stock market blogs, and popular investment newsletters.
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About BluForest, Inc.: BluForest, Inc. (OTCQB: BLUF) BluForest Inc. is an early stage carbon offsets marketing and renewable energy company. BLUF is executing its strategy to become a leading marketer of carbon offsets in the voluntary markets under the UN principle of Reducing Emissions from Deforestation and forest Degradation (REDD+).
For more information, please visit http://www.bluforest.com.
Goldman Small Cap Research
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