Cornell Capital Agrees to Support GreenShift's Restructuring
Friday June 29, 10:48 am ET
NEW YORK--(BUSINESS WIRE)--GreenShift Corporation (OTC Bulletin Board: GSHF - News) today announced its execution of an agreement with Cornell Capital Partners, L.P., pursuant to which Cornell and GreenShift agreed to use their best efforts to restructure the terms and conditions of GreenShift's various debts due to Cornell in a way that facilitates the completion of the GreenShift's pending merger with GS CleanTech Corporation (OTC Bulletin Board: GSCT - News) while attempting to safeguard and maximize the share value of the merged company and supporting the newly merged company's growth. Any agreement to restructure the terms of such debt obligations is subject to GreenShift and Cornell negotiating definite terms and entering into final written agreements, and no assurance can be given that the parties will be able to reach such agreement.
GreenShift and Cornell also agreed to waive on a one-time basis the past defaults under GreenShift's agreements with Cornell effective immediately provided (a) that GreenShift file and make effective a registration statement on Form S-4 to complete the GreenShift - GS CleanTech merger as soon as possible and (b) that GreenShift's chairman and chief executive officer, Kevin Kreisler, consent to the repayment of about $340,000 in Cornell debt in the form GreenShift stock to be paid out of Kreisler's stake in GreenShift at current market prices.
Troy Rillo, the Senior Managing Director of Cornell's investment manager, said that "We have supported GreenShift's growth for better than two years and we desire to continue to do so. We are pleased with GreenShift's progress - in particular its business model of using technology to attempt to defray risk for first generation ethanol producers. We haven't seen anyone attempting to do this to the extent of GreenShift."
Kreisler added that: "We are very grateful for the support that Cornell has given us in the past. They believed in and funded our business model when it was little more than an idea and we are thankful for their continued support as we execute on our restructuring plan and the sales and earnings growth of our core businesses."
About GreenShift Corporation
GreenShift Corporation develops and supports clean technologies and companies that facilitate the efficient use of natural resources. GreenShift's ambition is to catalyze the rapid realization of disruptive environmental gains by creating valuable opportunities for a great many people and companies to use resources more efficiently and to be more profitable. Additional information on GreenShift is available online at www.greenshift.com.
GreenShift and GS CleanTech are party to a merger agreement pursuant to which holders of GS CleanTech common stock will receive 1 share of GreenShift common stock for each 3 shares owned in GS CleanTech.
GreenShift owns majority stakes in GS CleanTech Corporation (OTC Bulletin Board: GSCT - News), GS AgriFuels Corporation (OTC Bulletin Board: GSGF - News), GS Energy Corporation (OTC Bulletin Board: GSEG - News), GS Carbon Corporation (OTC Bulletin Board: GSCR - News) and GS EnviroServices, Inc. (OTC Bulletin Board: GSEN - News).
