Ethanol Plant Planned for Denison, Iowa

Owner Looking for Investors
By | September 01, 2003
Plans for a Denison, Iowa, ethanol plant are moving ahead as Amaizing Energy Cooperative looks for investors.

Amaizing Energy board president Sam Cogdill said the company is holding 64 meetings in seven weeks to seek out possible investors and to inform the area about the benefits of ethanol to the community and the economy.

An accounting firm is on hand at the meetings to present the projected success of the new plant, based on the history of other ethanol facilities. Citizens are also given an idea of estimated return investments.

For $400, interested parties can buy a membership into the co-op before they invest. Those invested must sign a corn delivery agreement for three cents per bushel. Investors must deliver a minimum of 12,500 bushels of corn per year to the plant for ethanol production. If investors don't have a corn supply, they can join a corn pool and pay $373 for Amaizing Energy to buy the corn from another source.

Investments can be made at $2 per share, which equals a minimum of $25,000 from each party. If committed by Oct. 15, investors can receive a 10-percent discount worth $2,500 off. If committed by Dec. 15, the discount is worth five percent.

At the meetings, instead of asking who wants to invest, Amaizing Energy simply takes a straw poll by asking participants to write down on a sheet of paper what they would be willing to invest. Cogdill told EPM that as of Sept. 2 and after 21 meetings about $3.5 million had been offered.

"We've been told by others that what you actually collect for money as compared to what you get in a straw poll is actually more," Cogdill told EPM. "We're not hard-pressuring (for them to invest). We're just giving them all the information." EP