Cereplast, Inc. (CERP) soars on new business

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.”