Momentum Biofuels (MMBF)

Description:

Momentum Biofuels Inc was incorporated on January 29, 1987, in the state of Colorado, as Tonga Capital Corporation. On November 1, 2007, the Company changed its name from Tonga Capital Corporation to Momentum Biofuels, Inc. Tonga Capital Corporation was initially a pure play biodiesel producer focused on servicing the U.S. Gulf Coast and in the future, international biodiesel markets. Momentum Biofuels Incorporated is an intellectual property Company owning specific royalty agreement. The Company plans to seek, investigate, and if such investigation warrants, acquire royalty and license agreements. From May 2006 through January of 2009, Momentum was engaged in the manufacturing of high quality, low cost and socially responsible biodiesel fuels that complement and integrate with the existing diesel fuel supply chain through its subsidiary Momentum-Texas. In January 2009, after limited production and operational activities, the Board voted to suspend operations, reduce all expenses and explore options to maximize shareholder value. Momentum-Texas entered into an Agreement with Hunt Global Resources, Inc., under which, Hunt agreed to assume Momentum-Texas obligations under a sub-lease agreement between Momentum-Texas and Brand Infrastructure and Services, Inc., including all past due rent, assessments other charges related to the property covered by the sub-lease agreement, all in exchange for a conveyance of all of the right title and interest of Momentum-Texas, in and to all of its physical assets, including the biodiesel plant located in Pasadena, Texas and all intellectual property, processes, techniques and formulas for creating Biofuels and related products. Further, Momentum-Texas entered into a License Agreement with Hunt, which provided that in exchange for a grant of a license to use, improve, sublicense and commercialize the intellectual property described in the Agreement. Momentum-Colorado is contracted to receive a royalty of approximately 3% of the gross revenues of Hunt Global Resources, Inc., from the sale of Biofuels produced by Hunt Biosolutions, Inc., a subsidiary of Hunt, and from the sale of sand, gravel or other minerals from a 300 acre leasehold held by Hunt. The Companys management plans to pursue additional royalty and licensing agreements in furtherance of its objectives to maximize shareholder value and profitability. The management is also considering other opportunities in other non-related businesses and wont restrict its search to any specific business, industry or geographical location, and might participate in business ventures of virtually any nature. The Company faces competition from many established businesses, venture capital and financial concerns that have significantly greater financial and personnel resources and technical expertise.