AMNE to Sell Ecosafe Premium Foam(R) to Trans Global Group, Inc.
16 December 2009 - 12:06AM
Marketwired
American Green Group, Inc. (PINKSHEETS: AMNE)
(www.americangreengroup.com) and its wholly owned subsidiary
Paradigm Polymers have agreed to sell ECOSAFE PREMIUM FOAM® to
Trans Global Group, Inc (PINKSHEETS: TGGI) and its wholly owned
subsidiary Ecosafe Insulation of FL ("ECOFL") (www.ecosafeus.com).
The Agreement, which calls for respective Shareholder and
Director Approvals, would give TGGI complete control of Ecosafe
Premium Foam®. Under the terms of the Agreement a third party
Fairness Opinion is needed to place a fair market value on the
Ecosafe division of AMNE. AMNE and TGGI will rescind their joint
venture agreement and AMNE will return to TGGI the 50 million
shares of TGGI it received in September.
TGGI will also assume certain liabilities of AMNE that are
associated with Ecosafe.
AMNE has been unsuccessful in the past few months in obtaining
financing for the Company because of the company's stock price.
Changes in the securities industry regarding sub penny securities
has made it nearly impossible for the company to receive outside
financing. The Company had previously stated it will not do a
reverse split which is the only way the Company would cease trading
as a sub penny securitie.
The Agreement is expected to be signed by the end of December
2009 and completion will take place early in the first quarter of
2010. Once the Agreement is executed TGGI and AMNE will work
together for a seamless transaction and TGGI will assume control of
the daily operations of Ecosafe.
Neither company anticipates any hurdle in receiving both
Shareholder and Director approvals to complete the transaction.
AMNE will work with TGGI in developing the "Infinite R" brand
and bring the product to market in 2010.
The Company believes all other remarks made in the release to be
accurate to the best of their knowledge.
The foregoing press announcement contains forward-looking
statements that can be identified by such terminology such as
"believes," "expects," "potential," "plans," "suggests," "may,"
"should," "could," "intends," or similar expressions. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results
to be materially different from any future results, performance or
achievements expressed or implied by such statements. In
particular, management's expectations could be affected by, among
other things, uncertainties relating to our success in completing
acquisitions, financing our operations, entering into strategic
partnerships, engaging management and other matters disclosed by us
in our public filings from time to time. Forward-looking statements
speak only as to the date they are made. The Company does not
undertake to update forward-looking statements to reflect
circumstances or events that occur after the date the
forward-looking statements are made.
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