Gediminas Jasionis

VTBD Agrees to Acquire RFC

by Gediminas Jasionis February 11, 2008
renewable_energy.JPGVital Trust Business Development Company (OTCBB: VTBD) today announced an agreement to acquire Renewable Fuels Consulting (RFC). Based in Iowa, RFC is a private consulting firm.

VTBD CEO, Alex H. Edwards III, commented: “This is the first in a number of strategic acquisitions that not only bring revenue to the Company but build our team for future growth.”

Part of the deal involves RFC's founder, Michael LoCascio, joining VTBD with the title of Chief Technology Officer. "Mike LoCascio brings the education background and industry experience that we are looking for as we grow the organization," said Mr. Edwards III.

VTBD has substantial investments in handful of small companies in the energy, internet, healthcare and technology market sectors, and takes a role in managing these companies. As the company's SEC filing cautions, "There can be no assurance that any of the Managed Companies or Portfolio Companies will realize gains or generate cash or maintain a market value in excess of the price paid by the Company...
Investing in the Company's common stock involves a high degree of risk. The Company is subject to various risks that may materially harm its business, financial condition and results of operations." Indeed, for the nine month period that ended September 30, 2007, the company had a net loss of nearly $65 million dollars, mostly stemming from investments. For that date, the company lists assets of investments in portfoilio companies at a fair value of about $38.4 million. Tough times for VTDB.

VTBD.JPGOn January 28, VitalTrust Business Development announced that it plans to pursue operations as a vertically integrated alternative energy company, with an intended name change to "Renewable Energy Resources." The company press release explained, "Renewable Energy Resources will have the specific mission of 'Delivering Renewable Fuels To The World.' The Company will accomplish this mission through the initial acquisition of a number of alternative energy companies during the 1st quarter of 2008 and through its own organic growth."

The press release about the acquisition from Vital Trust Business Development Company says, "For more information please visit www.renwenergy.com," but that website is just one page, with an email address and that's about it. Vestigial websites don't impress me much.

Presently, VTBD's stock is trading at $0.175 per share, unchanged since the announcement but almost doubled since last week.

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