INSQ Sends a Letter to Shareholders:
MOUNT ARLINGTON, N.J., Oct 11, 2005 (BUSINESS WIRE) -- INSEQ Corporation (OTC
Bulletin Board: INSQ) chairman, Kevin Kreisler, issued the following
correspondence to its shareholders today:
Dear Shareholders:
A number of exciting developments have occurred since our last communication
that we view as critical to our ongoing development and growth. These
developments include the following:
-- The execution of an agreement to acquire Independent Metal Sales, Inc., which
will bring INSEQ to an estimated $21 million in annualized revenue and $2.1
million in EBITDA;
-- The execution of a letter of intent to acquire a Specialty Metal Manufacturer
("SMM"), which is expected to add another $2 million in annualized revenue with
better than 10% EBITDA;
-- The completion of INSEQ's acquisition of Separation and Recovery
Technologies, Inc. ("SRT") which holds the rights to a new patented technology
developed by Argonne National Laboratory under a contract with the U.S.
Department of Energy that preferentially separates plastics from mixed plastic
wastes;
-- The execution of manufacturing agreements with Ethanol Oil Recovery Systems,
LLC, Mean Green BioFuels Corporation, Ovation Products Corporation, and Tornado
Trash Corporation, each of which agreements call for the first refusal rights
relative to INSEQ's manufacturing of equipment and appliances based on each of
their respective patented and proprietary green technologies;
-- The execution of Strategic Alliances with Sterling Planet, Inc., and
TerraPass, Inc., under which agreements INSEQ will sell RECs and TerraPasses
through INSEQ's planned new secondary commodities exchange;
-- The execution of a Green Technology Prototyping and Manufacturing Agreement
with GreenShift Industrial Design Corporation ("GIDC") through which INSEQ will
manufacture and distribute GIDC's planned line of residential and commercial
recycling and waste reduction appliances and equipment;
-- The execution of a sub-license agreement with GIDC for certain applications
of Ovation Product Corporation's proprietary new water purification appliance,
under which INSEQ plans to develop and sell appliances for the purification and
reuse of waste kitchen and bath water, not including septic wastes, for a number
of markets including the food services, hospitality, and residential markets;
and,
-- The restructuring of our various debentures and the cancellation of about 350
million shares of INSEQ common stock and warrants exercisable into 300 million
shares of INSEQ common stock at $0.001 per share.
INSEQ's business model is based on activities where the Company directly
facilitates the more efficient use of natural resources. Its strategy includes
the manufacturing and sale of equipment and appliances based on proprietary
green technologies, the distribution of primary and secondary commodities,
direct production as appropriate of selected metals, chemicals, plastics and
fuels, and various forms of technology licensing.
INSEQ has recently executed an amendment to its Green Technology Prototyping and
Manufacturing Agreement with GIDC to include a blanket sub-license to GIDC's
package of existing and new green technologies, including GIDC's Tornado
Generator(TM) and water purification technologies. This is an important
development because INSEQ plans to directly use relevant technologies to
accelerate returns on its investments in future acquisitions by reducing the
targets' operating costs and increasing their sales. If the Company is
successful, and it structures its acquisitions with this in mind, it should be
able to acquire more companies, assets and earnings with less capital.
On the issue of the Company's capital structure, while we made positive strides
during the third quarter with the elimination of about 650 million shares of
common stock and warrants, our growth plans require us to seek out new
opportunities to achieve similar results. We have accordingly cancelled certain
financing agreements, restructured the planned financing for our pending
acquisition of Independent Metal Sales, which is slated to close this quarter,
and we expect to restructure GreenShift's 70% stake in INSEQ.
GreenShift holds a dilution protected 70% stake in INSEQ that currently amounts
to about 3.0 billion shares of INSEQ common stock. GreenShift has agreed to
cancel its dilution protections and convert the entirety of its common stock
into a new class of preferred stock. This new preferred stock will have a fixed
face value equal to 70% of INSEQ's intrinsic value on December 31, 2005.
GreenShift's voting rights and dividend preference will remain fixed at 70%
until conversion. The new class of preferred stock will be convertible into
INSEQ common stock at the lesser of $0.01 per share or 80% of the market price
at the time of conversion. The conversion of GreenShift's stake can be expected
to decrease INSEQ's common stock outstanding by about 3 billion shares.
I am hopeful that these changes will collectively help to enhance the impact of
our pending and targeted new acquisitions and other growth initiatives on our
overall shareholder wealth.
We are pleased with INSEQ's progress and we are very enthusiastic about our
prospects for growth. We are grateful for your continued support and
involvement. I look forward to our next communication.
Best Regards,
Kevin Kreisler
Chairman
INSEQ Corporation
About INSEQ Corporation
INSEQ Corporation is a publicly traded company whose mission is to directly
facilitate the efficient utilization of primary and secondary commodities
including metals, chemicals, fuels and plastics. More information on INSEQ is
available online at www.inseq.com.
INSEQ is 70% owned by GreenShift Corporation (OTC Bulletin Board: GSHF), a
business development corporation whose mission is to develop and support
companies and technologies that facilitate the efficient use of natural
resources and catalyze transformational environmental gains.
Safe Harbor Statement
This press release contains statements, which 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 INSEQ Corporation, and members of their 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 statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating results.
SOURCE: INSEQ Corporation
CONTACT: INSEQ CorporationJim Grainer, 973-398-8183Fax: 973-398-8037investorrelations@inseq.comwww.inseq.com
