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FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Date of Report (Date of earliest event reported) May 8, 1996.
HIGH PLAINS CORPORATION
(Exact name of registrant as specified in its charter)
Kansas #1-8680
(State or other jurisdiction of (Commission File
incorporation) Number)
200 W. Douglas #48-0901658
Suite #820 (IRS Employer
Wichita, Kansas 67202 Identification No.)
(Address of prinicipal
exeuctive offices)
(316)269-4310
(Registrant's telephone number)
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FOR IMMEDIATE RELEASE
Contact : Raymond G. Friend
High Plains Corporation
HIGH PLAINS CORP. PROJECTS RECORD FOURTH QUARTER REVENUES
INCLUDING $14.3 MILLION FROM SALE OF CORN FUTURES
Wichita, Kansas, May 8, 1996 -- High Plains Corporation (NASDAQ: HIPC) today
announced the sale of additional corn futures contracts, producing net
revenues of approximately $8.7 million in addition to the $5.6 million
previously announced on April 26, 1996. As a result, fiscal fourth quarter
revenues are projected to be the highest reported for any quarter in the
history of the company. High Plains had forward contracted most of its grain
requirements through August 1997, and when grain prices soared to record
highs recently, company management decided to liquidate the contracts for a
cash profit.
Stanley E. Larson, the Company's Chairman and Chief Executive Officer said,
"The record high corn prices, and the difficulty in finding adequate corn
supplies, have made it more profitable for the company to sell its forward
grain contracts than to utilize them in the production of ethanol. As a
result of these historic prices, the ethanol industry as a whole has cut its
production by approximately 50%, and as previously announced, High Plains has
joined many of the other ethanol companies that plan to idle their plants
during the summer months. Plant employees have been temporarily furloughed,
but the company is continuing to provide normal health insurance and other
employee benefits until the exact date to resume plant operations is
determined.
"Although this may result in some delay in our plans to modify one or both of
our plants to produce industrial grade ethanol, it is still our intention to
resume operations in late summer or early fall. The exact date of reopening
will depend on our ability to complete negotiation of an industrial grade
ethanol supply agreement, and on the price of grain at the time.
"While it is too early to predict the outcome of this year's corn harvest, at
least some experts are saying that with just normal weather, the country
could experience a record crop with corn prices back to $3.00 per bushel or
less. Lower corn prices, along with the ability to produce industrial as
well as fuel grade ethanol, could result in a very profitable combination for
High Plains."
Based in Wichita, Kansas, High Plains Corporation is the only publicly traded
company whose sole business is Ethanol. It is one of the largest producers
of Ethanol west of the Mississippi River, with approximately 60 million
gallons per year of current capacity. Clean burning Ethanol reduces
pollutants in automotive gasoline and increases octane levels for better
engine performance without increasing gas pump prices.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant had duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date May 8, 1996 HIGH PLAINS CORPORATION
Raymond G. Friend
Executive Vice President
- Chief Financial Officer
