EcoSolutions Intl. Approves Debt Conversion and Retires Debt
November 10 2010 - 8:15AM
Business Wire
EcoSolutions Intl. (Pink Sheets: ECOI) announced today that its
board has approved a debt conversion between Westside Partners and
Longview Advisors LLC. The company’s newly appointed CEO, Lawrence
Adams, commented, “This transaction retires a significant portion
of our unsecured corporate debt and clears our balance sheet, which
is part of our overall turnaround strategy.”
The company board agreed to the reduction of the conversion
price from .08 to .005 while Longview LLC has agreed to a
Lockout/Leak out agreement as part of the board approval. “This
allows the company to focus on its Acquisition strategy, while
continuing to retire company debt,” Mr. Adams commented. “While it
creates dilution to the shareholders, the debt obligation was a
burden thusly relieving the potential liability to the
company.”
Furthermore, Longview has an Option to buy the company's
remaining unsecured note held by T-Squared Partners, an
institutional investor in the company. The note carries a face
value of $100,000.00 with an interest rate of 6%. The option calls
for a reset on the conversion rate from .08 to .01 for half of the
note, and .08 to .05 on the remainder of the note. “If executed the
transaction would alleviate the company of all of its unsecured
debt,” Mr. Adams commented. “In addition, as previously mentioned,
we expect to file current financial documents shortly.”
EcoSolutions Intl. is a GREEN company with revolutionary
procedures that, among other products, produce a thermoplastic
material that can replace PVC, and is non-toxic and 100%
recyclable.
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