BioWillie is Running on Fumes
We are big fans of goofy business models ‘round here. And anything that can produce more in the way of losses than revenue is fair game to pass along to our astute readers.
The seller of BioWillie, the diesel fuel that’s green, has found itself in the red.
After some delays over accounting issues, Dallas-based Earth Biofuels Inc. filed its annual regulatory report Friday, outlining $62.9 million in losses for 2006 on sales of $41.6 million.
Auditors Malone & Bailey warned in the report that the company’s debt combined with losses make it doubt the company can continue as a going concern.
Country music star Willie Nelson licensed Earth Biofuels to sell BioWillie, a biofuel made from natural seed and animal oils that creates less airborne pollutants than standard diesel fuel.
Perhaps this is another chapter in Willie’s Tax avoidance strategy. Poor Willie is seeing red from green.
To be clear, we don’t have a position in this or any other penny stock. We are kind of boring that way. But ‘Ole Willie sure does own a chunk:
Shares of Earth Biofuels rose 3.5 cents to 28 cents in over-the-counter trading Friday. They have fallen 74.1 percent this year. They had traded as high as $6.75 on May 10, 2006.
Mr. Nelson resigned from Earth Biofuels’ board April 20, forfeiting 6 million nonvesting restricted shares of the company. Corporate filings show he still owns 6.5 million shares of Earth Biofuels’ common stock.
His publicist, Elaine Shock, said that Mr. Nelson wasn’t available and that he had no comment on his involvement with the company.
Mr. Nelson’s departure from Earth Biofuel’s board “was all part of the original plan,” Ms. Horn said.
He remains on the company’s board of advisers, and he receives 1 cent from each gallon of BioWillie sold.
Is the party over for BioWillie?
BioWillie Seller is in Trouble
Dallas Morning News
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