Management Update - October 1, 2018
TO SHAREHOLDERS OF GREENSHIFT CORPORATION:
We’re working on our filings as we finalize restructuring agreements with our lenders. While we’re targeting year-end to get everything done, our reports will be delayed if execution of the restructuring agreements is delayed. If that occurs, it will be to mitigate the risk of dilution.
We regret any confusion that may cause. Transparency is obviously a legitimate concern. It has been almost two years since our last filing, and I empathize with the impact. There would be no void to fill with speculation if there was no void to fill. That said, bringing our filings current carries an immediate risk of dilution from lenders that can be expected to convert their debt into stock as soon as they can deposit, clear, and sell our shares - before the Federal Circuit’s decision, before we make progress building value again, and before buyers come to the table.
The stakes couldn’t be more material. We have about 30 million shares outstanding. Full conversion of our legacy debt at $0.10 per share would increase our outstanding stock by more than 160 million shares. That amount obviously increases as the price decreases; for example, to 1.6 billion shares at $0.01 per share, 16 billion shares at $0.001 per share, and 160 billion shares at $0.0001 per share. Worse, that last price is our par value, and it’s the trigger point at which we would be forced to gut ourselves by completing yet another reverse split to comply with our loan agreements. It wouldn’t take much selling to drive the price down to that level. Getting current would just start a fire and news would add the fuel. You’d get increased transparency, but you’d also get to watch your investments burst into flame and burn to ash; and, once we got current, there would be little that we could do to protect you without breaching our debt agreements. I’m not going to allow any of that to happen. Not again.
