Shares of Cereplast, Inc. (OTCBB: CERP) soared as much as 8 percent higher today on volume that more than doubled its three-month daily average of 292,980. The company has been enjoying high volume and increasing share prices after announcing last week a major new business contract with Georgia-Pacific as well as divulging a new strategic plan to accelerate growth and product development.
Cereplast announced early last week that it will supply Compostables® resin to Georgia-Pacific Professional Food Services Solutions for the manufacture of its recently introduced line of Dixie EcoSmart beverage solutions. Dixie EcoSmart products include Cereplast Compostables resin-lined paper hot cups made from at least 95 percent renewable resources and the Insulair® line of insulated cups, available in 12 and 25 percent post-consumer recycled fiber.
John Mulcahy, Vice President of Georgia-Pacific, stated “This is a tremendous step forward in the approach we take to responsible manufacturing. The EcoSmart line represents some of the most groundbreaking products available to operators and is just one example of our dedication to providing sustainable solutions that create a positive impact on the world around us.”
Cereplast uses renewable resources to produce bio-based resins to be used as suitable substitutes for petroleum-based plastics. Using proprietary methods, the company makes starch-based renewable plastics and the Cereplast Compostables resins are ideally suited for single use applications where high bio-based content and compostability are advantageous, especially in the food service industry.
In addition to the new partnership with Georgia-Pacific, the largest contract in the history of Cereplast, the company has announced strategic restructuring to accelerate growth the company will enter into manufacturing supply agreements with large plastics compounders that will dramatically reduce the cost to produce plastic resins and provide sufficient capacity to service substantial new contracts with major customers such as Georgia-Pacific and Dorel.
“Recent events have allowed us to revise our strategic plan,” said Frederic Scheer, Chairman and CEO of Cereplast. “To accelerate our growth, Cereplast will focus its efforts on the product development and marketing core strengths that have propelled us into a leadership position in proprietary bio-plastics.”
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Kraig Biocraft Laboratories, Inc. (OTCBB: KBLB) skyrocketed 861 percent to 25 cents per share, from Tuesday’s closing price of two-and-a-half cents per share, after the company announced it is gearing up to double the number of genetic insertions performed. The company specializes in the commercialization of new textiles and high performance fibers, and is working to develop high performance polymers using spider silk gene sequences.
Earlier this month, Kraig announced that its scientific team had recently succeeded in building eight unique DNA constructs, specifically targeted for the production of new fusion silk proteins, which the team is preparing for genetic insertion over the next few weeks. Kraig anticipates that the rate of DNA construct insertions in May will be double that which has been performed to date.
CEO Kim Thompson commented on this breakthrough, “We are now entering the next phase in which the team is reallocating recourses to genetic insertion. This is directly related to our recent development of new DNA constructs that are specifically targeted for the production of new fusion silk proteins. We intend to dramatically ramp up the number of insertions performed in order to gain the maximum benefit from the new insertion packets.”
The goal of these genetic insertions is the mass production of spider silk, known for its incredible tensile strength, and stronger than steel by weight. Kraig hopes to tap into, and dominate the $92 billion high performance fiber industry.
In 2007 Kraig Biocraft Laboratories signed an intellectual property and collaborative research agreement with the University of Notre Dame. Since that time the Company has been a proud sponsor of scientific research and development within the university.
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