GreenShift and YA Global Enter into Restructuring Agreements
11 December 2009 - 3:31AM
Business Wire
GreenShift Corporation (OTC Bulletin Board: GERS) today
announced that it has executed agreements (the “Agreements”) with
its senior lender, YA Global Investments, L.P. (“YA Global”), and
majority shareholder, Viridis Capital, LLC (“Viridis”), to
restructure about $42,700,000 in debt issued by GreenShift and its
subsidiaries to YA Global (the “Senior Loans”).
The restructured Senior Loans shall mature on March 31, 2011 and
shall bear interest at the annual rate of 6%, a reduction from the
average annual rate of 12% previously due under the Senior Loans.
The Senior Loans are payable in cash or GreenShift common stock at
the rate of $800,000 per quarter for the four calendar quarters
commencing January 1, 2010, and the sum of $1,200,000 per quarter
commencing January 1, 2011. Additional information pertaining to
the terms of the Agreements will be made available online today at
www.greenshift.com in GreenShift’s December 9, 2009 Current Report
on Form 8K.
“We initially capitalized our business by issuing convertible
debt structured in ways that allowed us to conserve cash while we
developed and refined our early-stage clean technologies,” said
Kevin Kreisler, GreenShift’s chairman and chief executive officer.
“Our long-term plan has been to build value with technology and
then to leverage that value to recapitalize our early-stage
investment while driving the continued growth of our business.”
Use of Proceeds
GreenShift used the majority of the funds provided by YA Global
in the development and commercialization of its patented and
patent-pending corn oil extraction and related technologies.
GreenShift was recently awarded two patents for its corn oil
extraction technologies and expects to receive additional patents
on other pending applications for corn oil extraction. GreenShift’s
technologies have already delivered substantial value to ethanol
producers – an estimated 20% of the U.S. ethanol industry is using
GreenShift’s patented and patent-pending extraction technologies
today without a license, and GreenShift believes that the majority
of the ethanol industry will license GreenShift technology over the
coming years given the significant benefits to ethanol
producers.
Kreisler added: “Being first at anything can be expensive. This
was certainly the case for GreenShift, but we were able to develop
and protect a strong intellectual property position with a
portfolio of technology that was devised and is proven to deliver
powerful competitive advantages to the renewable fuels industry –
increased sustainability, reduced cost, reduced energy, and reduced
carbon, all by integrating our technologies into the industry’s
existing production assets.”
GreenShift’s extraction technologies increase biofuel yields per
bushel of corn by 7% while reducing the energy and greenhouse gas
(GHG) intensity of corn ethanol production by more than 21% and
29%, respectively. These benefits correspond to increased ethanol
producer income of about $0.08 to $0.12 per gallon of ethanol
produced at current market prices, and can be realized for less
than 10% of the capital cost of the host ethanol plant. Further,
the reduction in carbon emissions from use of GreenShift’s corn oil
extraction technologies can be expected to benefit ethanol
producers under the pending new EPA regulations.
Moving Forward
“Our chief goal for 2010 is to support the integration of our
patented extraction technologies into as much of the U.S. ethanol
fleet as possible,” said Kreisler. “This will be accomplished with
a combination of licensing, prosecution of unlicensed use of our
extraction technologies, and strategic partnerships with providers
that have the capital resources needed to build new extraction
facilities. We plan to provide important additional updates in this
regard over the next 30-60 days, but the restructuring of the
Senior Loans was and is a critical part of our plans. The reduced
interest rate of the Senior Loans will allow us to save about $3
million per year and to raise additional capital to grow our
business. YA Global has always been a solid partner and we are
thankful to have their continued support as we use our technologies
to build value for our shareholders and clients.”
About GreenShift Corporation
GreenShift Corporation (OTC Bulletin Board: GERS) develops and
commercializes clean technologies designed to integrate into and
leverage established production infrastructure and distribution
channels to address the financial and environmental needs of
GreenShift’s clients by decreasing raw material needs, facilitating
co-product reuse, and reducing the generation of wastes and
emissions.
At full participation by the ethanol industry, GreenShift’s
commercially-available technologies can give way to disruptive
gains by sustainably producing globally-meaningful quantities of
new carbon-neutral liquid fuels for distribution through existing
supply chains.
GreenShift is focused today on supporting integration of its
patented and patent-pending corn oil extraction technologies into
as much of the ethanol fleet as possible. GreenShift also maintains
its strong commitment to continued innovation and has many
additional patents pending for its Backend Fractionation portfolio
of strategically-compatible cleantech designed to continue driving
the corn ethanol industry into increased sustainability and global
competitiveness.
Additional information on GreenShift
and its technologies is available online at
www.greenshift.com.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking statements" within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, as amended by
the Private Securities Litigation Reform Act of 1995. Those
statements include statements regarding the intent, belief or
current expectations of GreenShift Corporation and members of its
management as well as the assumptions on which such statements are
based. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking
statements. Important factors currently known to management that
could cause actual results to differ materially from those in
forward-statements include fluctuation of operating results, the
ability to compete successfully, and the ability to complete
before-mentioned transactions. The company undertakes no obligation
to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results.
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