DATE: August 20, 2018
MATERIAL EVENT:
Ceasing Operations
In light of a sequence of recent events, Deep Green has
suspended all business operations.
On March 31, 2018, one of our most significant customers, representing 14% of the company’s 2017
revenue, elected to start handling its construction waste management activities in house and terminated its
agreement with Deep Green.
In June 2018,
Deep Green attempted to renegotiate it
s factoring agreements with Advanced Energy Capital
in order to
restructure its terms more favorably for Deep Green. These negotiations broke down and
Advanced Energy Capital stopped advancing funds to Deep Green under its factoring arrangement. AEC
has subsequently issued a notice of default to Deep Green.
On June
29, 2018 our largest recurring revenue customer, representing over 22% of 2017 revenue, notified
Deep Green that it would be terminating its agreement effective July 31, 2018.
Consequently, on July 13, 2018, due to cash uncertainty, Deep Green terminated
all employees and
suspended business operations until further notice.
On August 17, 2018 Deep Green agreed, in lieu of foreclosure, to assign its subsidiary companies,
Compaction and Recycling Equipment, Inc. and Columbia Financial Services, Inc. to Mira
bile Corporate
Holdings, Inc. in exchange for Mirabile’s assumption of certain
Deep Green debt
, which was
secured by
the assets of those subsidiaries.
At this time Deep Green does not have the cash to operate or complete its financial statements and post its
June 30, 2018 quarterly report. The company is currently seek
ing
financial solutions.
There can be no
assurance, however, that the company will be able to obtain financing
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