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We may not be able to hire and retain qualified personnel to operate our ethanol plants.
Our success depends, in part, on our ability to attract and retain competent personnel. For each of our plants, qualified
managers, engineers, operations and other personnel must be hired. Competition for both managers and plant employees in
the ethanol industry can be intense, and we may not be able to attract and retain qualified personnel. If we are unable to hire
and retain productive and competent personnel, the amount of ethanol we produce may decrease and we may not be able to
efficiently operate our ethanol plants and execute our business strategy.
Risks relating to ownership of our common stock
The price of our common stock may be volatile.
The trading price of our common stock may be highly volatile and could be subject to fluctuations in response to a
number of factors beyond our control. Some of these factors are:
our results of operations and the performance of our competitors;
the public’s reaction to our press releases, other public announcements and filings with the SEC;
changes in earnings estimates or recommendations by research analysts who follow us or other companies in our
industry;
changes in general economic conditions;
changes in market prices for our products or for our raw materials;
actions of our historical equity investors, including sales of common stock by our directors, executive officers and
significant shareholders;
actions by institutional investors trading in our stock;
disruption of our operations;
any major change in our management team;
other developments affecting us, our industry or our competitors; and
U.S. and international economic, legal and regulatory factors unrelated to our performance.
In recent years the stock market has experienced significant price and volume fluctuations. These fluctuations may be
unrelated to the operating performance of particular companies. These broad market fluctuations may cause declines in the
market price of our common stock. The price of our common stock could fluctuate based upon factors that have little or
nothing to do with our Company or its performance, and those fluctuations could materially reduce our common stock price.
Our principal shareholders have substantial influence over us and they may make decisions with which you disagree.
As of December 31, 2011, subsidiaries of NTR plc, Wilon Holdings, S.A., and Wayne Hoovestol, a director and our
former Chief Executive Officer, beneficially own approximately 23.5%, 6.3% and 2.8%, respectively, of our outstanding
common stock. NTR, Wilon and Mr. Hoovestol have entered into a Shareholders’ Agreement with us in which Wilon has the
right to designate one individual to be nominated to our board so long it holds more than 2.5% of our outstanding stock.
NTR, Wilon and Mr. Hoovestol have agreed to vote for Wilon’s nominee at any meeting of shareholders for the purpose of
electing directors. As a result of the share ownership by NTR, Wilon and Mr. Hoovestol, these shareholders have the ability
to significantly influence the composition of our Board of Directors and other matters requiring shareholder approval
including mergers and other significant transactions. These shareholders may have interests that differ from yours, and they
may vote in a way with which you disagree and that may be adverse to your interests. This concentration of ownership could
present or delay a change of control of us or deprive shareholders of a right to receive a premium for their shares as part of
our sale, which could also affect the market price of our common stock.
A significant percentage of our outstanding voting stock is held by a concentrated number of shareholders which could
impact your liquidity.
As of December 31, 2011, approximately 36.8% of our outstanding common stock is held by NTR, Wilon, and our
executive officers and directors. Continued concentrated ownership could result in fewer shares being available to be traded