Shares of Green Energy Renewable Solutions Inc. (PINK: EWRL), a development-stage company engaged in the development of municipal solid waste, and construction and demolition of waste processing and recycling facilities in Highland Park, Michigan, plunged in Friday’s trading session.
The penny stock of EWRL ended the day 22.92% lower at $0.555, with volume up from daily average of 582,492 to 1.58 million. The stock pared some of its losses in after-hours trading on Friday, gaining 5.95%.
Green Energy Renewable shares have been in focus in the last few days as the company made some major announcements related to its operations.
EWRL, which acquired a 5-acre parcel of land in Highland Park in November last year, recently said that the site is cleared and most of the required equipment is in place to receive waste material and begin advanced recycling operations to recover valuable materials in the waste stream.
Green Energy is in discussions with local officials to complete the permitting process. Operations at the facility are expected to start within 60 days. Once fully operational, EWRL plans to process 750 tons per day of waste at the site by the end of third quarter. The company expects to generate annual “tipping fee” revenue of around $2.6 million. The company also expects to generate significant revenue from recovered recyclable materials.
In addition to the 5-acre parcel of land EWRL acquired last year, the company also reached an agreement to acquire an adjacent 10-acre parcel to complete the recycling facility.
Green Energy Renewable also entered into a long-term contract with Disposal Specialties LLC of Birmingham, Michigan. The contract guarantees up to 1,000 tons per day of construction and demolition waste for recycling operations at the Highland Park facility. The company said that it is targeting a recovery rate of approximately 85% of incoming waste for recycling purposes.
In addition to making progress on the operating front, Green Energy Renewable also announced a stock dividend recently. EWRL’s board of directors approved a one share for one share stock dividend. Shareholders of record at close of business on June 29, 2012, will be entitled to the stock dividend.