FORM 8-K PRIVATE
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) December 17, 1997.
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 principal
executive offices)
(316)269-4310
(Registrant's telephone number)
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Item 5 Other Information
Wichita, KS, December 15, 1997 -- High Plains Corporation (NASDAQ:HIPC) today
announced that it has completed the acquisition of a 15 million gallon per year
Ethanol plant located in Portales, New Mexico. The plant was acquired for $4
million cash from Giant Industries Arizona, Inc., a petroleum refiner and
marketer which had operated the plant from 1991 until record high grain prices
forced a shut-down in 1995.
"This acquisition will increase our Company's Ethanol production capacity by
25%, at an acquisition cost of less than $.30 per gallon, even after the
capitalization of expected refurbishment costs," said Raymond G. Friend,
President. "Some maintenance and refurbishment of the plant is anticipated,
but the total cost of these initial capital items is not currently expected to
exceed $500,000."
"We plan on having the plant operational by the first week of February, 1998,
and the location will give us an additional gateway to the West for product
distribution, including major sales into the Southwest. The location of this
plant could become even more important if California removes its oxygen cap, or
if the National Academy of Sciences recommends a vapor pressure waiver for
Ethanol in the Reformulated Gasoline Program areas."
"The Portales area grain market is inconsistent, but current crops are good,
resulting in relatively low feedstock prices. With the volume of grain
purchased by high Plains, and our current hedging and risk management
strategies, we feel that we can arrange grain supplies for the plant at
economical numbers. We also anticipate that our experience and expertise in
the industry will allow us to make various changes to the Portales plant which
will increase its efficiencies, making it potentially a very valuable asset for
High Plains.
Financing for the acquisition was provided by the Company's existing lender,
National Bank of Canada at rates similar to the Company's existing long-term
debt.
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 with approximately 60 million gallons per year of current capacity.
The acquisition of the Portales facility will boost future production capacity
to approximately 75 million gallons per year. Clean burning Ethanol reduces
pollutants in automotive gasoline and increases octane levels for better engine
performance without increasing gas pump prices.
"THE SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. This press release contains forward-looking statements that involve
risks and uncertainties, including but not limited to risks detailed from time
to time in the Company's Securities and Exchange Commission filings.
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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 December 17, 1997 HIGH PLAINS CORPORATION
/s/
Raymond G. Friend
President
