Ethanex Energy, Inc. is a development-stage company that focuses to engage in the business of producing fuel ethanol through the ownership and operation of ethanol plants. On August 3, 2006, one of the Company’s wholly owned subsidiaries, Ethanex Energy North America (EENA), acquired all of the capital stock of IPT Ethanol, Inc., a then wholly owned subsidiary of Industrial Power and Technology (IPT). In May 2006, IPT had entered into a letter of understanding (LOU) with a NYSE-listed electric utility located in the Midwest for the joint evaluation of the environmental and operational impact of siting a 132-million-gallons-per-year (MMGY) ethanol plant at a large coal-fired generating facility owned by an electric utility in northeast Kansas. The LOU provided IPT with a six-month exclusive study period, which was subsequently extended to May 25, 2007. IPT assigned all of its rights in the LOU to IPT Ethanol, Inc. before EENA acquired IPT Ethanol, Inc.