I believe we have the SEC filing question answered as well as others.
From: Kevin Kreisler <kkreisler@greenshift.com>
Date: September 5, 2018 at 10:41:34 AM CDT
To: xxxxxxx
Subject: Response
xxxxxxx -
An update on the appeal was filed this morning by Attis Industries Inc., our joint venture partner (NASDAQ: ATIS). A copy of the appeal will be provided on our website today.
Further, as previously disclosed, GreenShift has been working to refinance the last remnants of its debt from before the crash in 2008/09. That debt is convertible at a discount to the market price for our common stock, and it was by far the primary source of dilution during the past ten years. The associated agreements required extensive debt conversions and multiple reverse splits to be completed under threat of foreclosure. Eliminating that debt and its dilutive impact was thus stated in many of our prior filings and communications to be of vital importance to our ability to build value.
Unfortunately, our cash flows were insufficient to do so, especially in the wake of the interim 2014 and 2016 rulings and ongoing infringement. However, fortunately, GreenShift’s filing status since Q3 2016 prevented [emphasis mine] debt conversions and stock sales from occurring, thereby greatly reducing dilution in comparison to prior years while we used the cash that we had left after covering litigation costs to pay about $2.5 million of our debt slowly over the past two years. Doing so has finally reduced the balance to a level that can be refinanced on more favorable and shareholder-friendly terms. Our joint venture with Attis was designed in part to accelerate that refinancing. We have been focused on negotiating agreements with our lenders since June 2018. We hope to finalize those agreements by October 2018. Doing so will finally eliminate the last of our toxic “floorless” debt after a decade of Hell. We intend to bring our filings current after that occurs - not before. We expect to do so before year-end as previously disclosed, but we will not hesitate to extend that date if our refinancing agreements aren’t finalized in time to audit and file before year-end.
Our sole remaining debt of consequence after that is due to friendly investors, Attis Industries Inc., EXO Opportunity Fund LLC, and Minority Interest Fund (II) LLC. Each is payable in cash, and, while each is convertible into common stock, it is convertible at the greater of $0.01 per share or 100% of market at the time of conversion, thereby limiting the dilutive impact to a fixed share amount while allowing the company to capitalize on increased market prices to further reduce the dilutive impact (e.g., a $2.00 market price reduces the dilutive impact by 200 times). Each of those debt agreements are also subject to ownership caps and leakage restrictions which further reduce issuances. Our planned filings will include guidance on our existing and expected share structure.
Please feel free to openly share this email if you wish. Thank you again for your patience and continued support.
Regards,
Kevin Kreisler
GreenShift Corporation
