RIVERSIDE, Calif., Dec. 15, 2014 /PRNewswire/ -- Green
Automotive Company (OTC Pink: GACR) announced today that the
Company is planning to implement an initiative to enhance its net
stockholders equity.
Green Automotive Company is implementing an initiative that is
intended to enhance the value for its stockholders. Green
Automotive Company plans to request approval from its stockholders
to amend its Articles of Incorporation and Bylaws to increase its
authorized common stock and create a series of anti-dilutive,
convertible preferred shares to allow the Company to reconstitute
its capital structure.
The objective, moving forward, is to insulate the Company's
primary stockholders from past, present, or future dilution in the
open market by providing these anti-dilutive securities as a
dividend payment. These shares are restricted for one year, will
turn into a predetermined amount of the Company's common stock
through issuance resolutions from Company's management, and will
convert at the new par value of the Company. More clarity
will be available regarding these corporate actions when the
Company mails the Schedule 14-A to its shareholders.
Thereafter, the next step in the initiative is for the Company
to use these convertible preferred securities as currency to
exchange or novate other of its derivative liabilities that exist
on the financial statements in the form of affiliate and
non-affiliate debt. The Company anticipates that much of its
principal affiliate debt will be retired in exchange for shares of
the new series of preferred stock, while the interest will be
converted into restricted common stock. The Company then
plans to work with the non-affiliate debt holders to convert
interest portion of the mature, secured, debt that is in default
into equity in order to remove any future compounding derivative
liabilities from the Company's balance sheet.
Carter Read, CEO of Green
Automotive Company, said, "The initiative is a blueprint to
hopefully acquire and attract investment and equity into our
company. We also hope to strengthen investor confidence through
stock and cash dividends and remove affiliate and non-affiliate
debt from the Company's balance sheet. We also aim to build net
stockholders' equity on the balance sheet. This is a process we are
committed to forging ahead with, and our resolve to complete those
tasks are a function of effort, teamwork, and time."
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SOURCE Green Automotive Company