Dallas, Texas 01/06/2014 (FINANCIALSTRENDS) – Cereplast Inc (OTCMKTS:CERP) the $0.24 million market capped special chemicals manufacturer saw its stock zoom up by a huge 32 percent during trading on the last day of the week on December 3. This huge increase in the company’s prospects was achieved on the back of some far reaching policy decisions which are likely to come into effect from January first this year.
Readers should note that Cereplast Inc (OTCMKTS:CERP) shares popped up by a huge margin to reverse most of the losses it had accumulated at the stock exchange since it started public trading couple of months back. At the price point of $0.01 per share which was recorded at close of business on January 3, the stock was trading 75 percent above its prior high price point of $0.03 per share.
Cereplast Inc (OTCMKTS:CERP) is a development stage manufacturer of specialized bio degradable chemical resins which go into the making of bio degradable plastic. These resins stand out because they are “compostable, bio-based, and ecologically sound substitutes for petroleum-based plastics”. The bio degradable plastic that is manufactured using Cereplast chemicals can be used in the manufacture of plastic carry bags, food wraps and packaging solutions.
The surge in the stock happened on new regulations set out by the France government which had decreed that it would be imposing a special tax on single use plastic bags to limit the pollution effects of these non degradable plastics is causing to the wider environment staring January 1,2014.
This tax is expected to hugely benefit the alternative bio plastic market since the new tax exempts the bio plastic bags. This new law does not apply to plastic bags which contain at least 40 percent of bio based material in its manufacture. Readers should note that a similar tax has been imposed in neighbouring Italy previous year, and had resulted in huge demand for bio degradable plastic in that country.