Biomass Firm Ordered to Stop Selling Investments
A biomass company in Arkansas has been ordered to stop soliciting investments in violation of state law, reports Brighterenergy.org.
Hot Springs-based Phoenix Renewable Energy announced plans last year to build a $180 million biomass power plant and wood pellet factory in Camden, Arkansas.
But the company has now been issued a cease and desist order by the Arkansas Securities Department to stop selling promissory notes to investors.
Securities Commissioner Heath Abshure said the company’s director, Stephen Walker, had been selling direct to Arkansas residents, offering investors 6% interest on their investment and an ownership interest in his company. PRE was telling investors that the company would go public on a German stock exchange.
In a statement, Mr. Abshure said neither the company nor its director had been registered to sell securities, and had not been exempt from the need to register.
Although the notes purchased by PRE investors were all due and payable by December 2009, Walker and PRE have not returned funds or interest as provided in the agreements.
Phoenix Chief Executive Officer Sam Anderson told Associated Press the company won’t have any trouble complying with the order.
More on the biomass firm’s cease and desist order.