In April 2008, we formed GCE Mexico I, LLC, our new joint venture ("GCE Mexico"), with certain other investors. Pursuant to the operating agreement of GCE Mexico, certain investors who hold preferred membership interests in GCE Mexico agreed to make capital contributions (of approximately $2.1 million) to fund the operating costs of GCE Mexico, and agreed to loan approximately $2 million to GCE Mexico to be used in connection with the acquisition of land for purposes of our Jatropha Business. On April 29, 2008, shortly following the formation of GCE Mexico, these preferred members made an initial capital contribution of $957,191 to GCE Mexico I, LLC, which proceeds are being utilized toward development of our Jatropha Business, and made a loan to GCE Mexico of $2,051,282 that was used for the purchase of approximately 5,000 acres of land in Mexico.

During 2008, we have been funding our operations from the Mercator loans, and from the proceeds of the sale of the Series B Convertible Preferred Stock (in November 2007, we issued 13,000 shares of our newly created Series B Convertible Preferred Stock to two accredited investors for an aggregate of $1,300,000.) However, we do not have sufficient cash to continue our current operations past September 2008 and our business plan calls for significant infusion of additional capital to establish additional Jatropha farms in Mexico and other locations. Because of our negative working capital position, we currently do not have the funds necessary to acquire and cultivate additional Jatropha farms, nor will the projected proceeds from the SaveCream sale be sufficient for those purposes. Accordingly, we will have to obtain significant additional capital through the sale of additional equity and/or debt securities, the forward sale of Jatropha oil and carbon offset credits, and from other financing activities, such as strategic partnerships and joint ventures similar to GCE Mexico. While we have commenced negotiations with third parties to obtain additional funding from strategic partnerships and for the sale of carbon credits, no assurance can be given that we will have sufficient capital available to continue to operate our business until the end of 2008 or that we will be able to effect our new business plan in the Jatropha Business. If we are not able to raise additional funds in the near term, we may have to reduce our operations, revise our business plan, and either temporarily or permanently cease operations.

We have no off-balance sheet arrangements as defined in Item 303(a)(4) of Regulation S-K.

http://biz.yahoo.com/e/080814/gceh.o...

If they Dilute - I'll be very-very upset with these Billionaires onboard.

emit...