GreenShift Closes Debt Restructuring; Reduces Debt by 23%

Impact of Transaction


The transfers reduced the balance of convertible debt due from GreenShift to YA Global by about 23%, from about $43 million to about $33 million. This amount can be reduced further down to about $25.3 million upon realization by GreenShift of the performance bonuses noted above. In addition, the maturity date for the remaining convertible debt due from GreenShift to YA Global has been extended from March 31, 2011 to December 31, 2012.

"Reducing debt will lead to increased strength and enhanced capabilities to win new business," said Kevin Kreisler, GreenShift's chairman and chief executive officer. "The new agreements with YA Global provide a realistic mechanism to achieve this while we continue to service the needs of our clients."

"A key challenge and objective for us is to repay YA Global's investment in cost-effective ways while minimizing the issuance of common stock as much as possible. YA Global provided us with most of the funds we needed to develop and commercialize our patented and patent-pending technologies, and has been and remains a strong and flexible partner for our business, and we are pleased to have the opportunity to continue to partner with them in this new transaction as we achieve our goals to create value for our clients and shareholders," said Kreisler.
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SkunK
 
Revenues and Expenses.  Only by increasing the first and reducing the second will we get to that all elusive golden goal of profitability.  We have already cut overhead to 17 employees.  Now we have additional debt reduction.  We will soon hear the status of revenues in the 2Q next week - (maybe in a PR earlier?) We got one early today. . .

In my opinion, when one looks at vol this week after the reverse split, one needs to add a zero to compare to last week.  5M vol becomes 50M.  20M becomes 200M.  Yesterday, many people's accounts were predictably screwed up - so today is the first real day of trading after the R/S.  Lets see . . .