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) December 8, 2000.
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)
<PAGE>
Item 5 Other Information
Wichita, KS, December 8, 2000 -- High Plains Corporation (Nasdaq: HIPC) today
announced initiatives and strategic action plans under consideration by its
Board of Directors after the recently concluded annual shareholders' meeting.
The Board focused on a continuing evaluation and prioritization of capital
projects geared to diversify and position the Company to achieve long term
goals, and discussed such options as expansion of fuel ethanol production,
expansion of industrial and beverage alcohol production, co-generation of
electricity from landfill gas, and extraction and distillation of glycerol
from stillage by-products.
Donald Schroeder, Chairman of High Plains' Board of Directors, stated, "Our
goal is to position High Plains for long term growth and profitability, and
to provide a good return on the investments of our shareholders. While we
are well positioned financially after our major refinancing last year, we
still must spend our liquid assets judiciously. Many projects are
attractive, but our job is to prioritize the projects that best fit with our
strategic goals, then pursue those projects aggressively."
Gary Smith, President and CEO elaborated by stating that, "Our immediate
priorities are influenced by the strong ethanol markets, and the recent
action by the Department of Agriculture in providing a two year cash
incentive for ethanol producers who increase their grain consumption in order
to increase their fuel ethanol production. The program allows "small"
ethanol producers (less than 65 million gallons per year) reimbursement for
the cost of one bushel of grain for every 2 1/2 bushels used for increases in
fuel ethanol production. "Large" producers would receive one bushel for
every 3 1/2 bushels of increased usage. It is a welcome incentive to expand,
and our board and management team is currently evaluating how High Plains
can best take advantage of this opportunity," Smith explained.
"At the same time, opportunities to expand industrial ethanol production are
very attractive, and we have already committed resources to study electric
co-generation from the relatively inexpensive landfill gas available to our
Colwich, Kansas facility. We also continue to develop the technology
necessary to scale up our glycerol production project from pilot plant to
production plant scale, and still hope to report on the viability of that
project by February of 2001," he continued.
High Plains also announced that its Board of Directors has authorized the
expenditure of up to One Million Dollars ($1,000,000) to repurchase shares of
its Common Stock, from time to time, in either public market or private
transactions. This buyback will commence immediately, and may continue
through June 30, 2001, the end of the Company's fiscal year. The Company
will make purchases only at such time and share prices as the Company deems
to be favorable, and the amount and timing of any share repurchases will be
based on management's ongoing assessment of the Company's capital structure,
liquidity, general market conditions, and other corporate considerations.
<PAGE>
"We believe that the current valuation of our stock inadequately reflects
both the current financial performance of our company, and the performance
expectations we have for our 2001 fiscal year and beyond," said Gary Smith.
"We believe the industry is very healthy, and has a bright future. Demand is
expanding with substantial additional ethanol blending expected in
California, and political initiatives to eliminate MTBE have to date been
framed in a light that is favorable to the ethanol industry. This stock
buyback program, along with the referenced capital projects which are being
considered by the Company, reflects our confidence in our future performance,
as well as our commitment to building shareholder value," Smith concluded.
Based in Wichita, Kansas, High Plains Corporation is among the nation's
largest producers of ethanol. The company operates facilities in Colwich,
Kansas; York, Nebraska; and Portales, New Mexico.
This press release contains forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including without limitation risks of fluctuations
in feedstock commodity prices, changes in the market prices or demand for
motor fuels and Ethanol, legislative changes regarding air quality, fuel
specifications or incentive programs, as well as general market conditions,
competition and pricing. The Company believes that forward-looking
statements made by it are based upon reasonable expectations. However, no
assurances can be given that actual results will not differ materially from
those contained in such forward-looking statements. Additional information
concerning these and other factors is contained in the Company's Securities
and Exchange Commission filings, including its annual 10-K, Proxy Statement
and quarterly 10-Q filings, copies of which are available from the Company
without charge.
<PAGE>
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 8, 2000 HIGH PLAINS CORPORATION
/s/Gary R. Smith
President & CEO
