Alternative Energy Sources, Inc. announces
it will
cease all operations
On June 23, 2008 the Board of Directors (the "Board")
of Alternative Energy Sources, Inc. (the "Company"), due
to an inability to
successfully raise funds for its ethanol plant construction or expand
its ethanol management consulting business, initiated a plan to cease
business operations. As a result of this plan, the Company expects
to record total pre-tax one time non-cash charges totaling approximately
$3.1 million in connection with winding down its operations, the
largest charge being approximately $2.5 million relating to the asset
impairment charge associated with the Company's proposed Boone County,
Iowa plant location. The Company is also subject to a lease for its
headquarters with 78 months remaining on its term and employment
agreements that stipulate payments upon termination without cause.
Costs associated with future obligations under this lease and the
employment agreements are not determinable at this point.
The Board determined to furlough, effective June 30, 2008, all employees
and the following officers: Lee L. Blank, John J. Holland and John
A.Ward.
The Board also determined to elect, effective July 1, 2008, Mark
A. Beemer, who in addition to his current roles as Chairman and Chief
Executive Officer will also serve as Chief Financial Officer. Effective
July 1, 2008, Mr. Beemer's compensation will be adjusted to an hourly
basis at his current annual rate of pay. Payment of the compensation
will be subject to the company's ability to meet its
obligation to Mr. Beemer. Additional information relating to Mr.
Beemer's age, experience, compensation, family relationships and
related party transactions can be found in the Company's Annual Report
on Form 10-KSB for the period ended December 31, 2007 filed with
the SEC on March 31, 2008.
Following the board meeting, on June 23, 2008, the following directors
voluntarily resigned from the Board and from all committees of the
Board: Lee L. Blank, W. Gordon Snyder, A. Michael Espy and John D.
McNamara.
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