GreenShift Corporation (OTCBB: GSHF) today announced the execution of agreements by GreenShift's new AgriFuels division, GS AgriFuels, for a $22 million investment by Cornell Capital Partners.
GS AgriFuels will use the investment to build a 45 million gallon per year biodiesel production facility and to provide working capital for the facility's initial operations.
"Cornell Capital is a great supporter of biofuels and renewable energy in general," said Kevin Kreisler, Chairman and Chief Executive Officer of GreenShift. "Cornell Capital's serious approach to supporting companies on the cutting edge of biofuels production reflects its overall vision and commitment to the clean energy sector," said Kreisler.
"Both innovative and sustainable, we see the GS AgriFuels business model as one that will thrive in the biofuels marketplace," said Troy Rillo, Managing Director of Cornell Capital. "We are proud to be a part of GS AgriFuels' development and look forward to being a part of its future."
This investment follows the closing yesterday of the sale by GreenShift of its wholly-owned subsidiary, Mean Green BioFuels, Inc., to another GreenShift subsidiary, Hugo International Telecom, Inc. (OTC Bulletin Board: HGOT) Hugo is an 80% owned subsidiary of GreenShift that has been inactive to date. Hugo will be re-named "GS AgriFuels Corporation" early next quarter in connection with these transactions.
Under the investment agreements, Cornell Capital will purchase 5% debentures in GS AgriFuels (Hugo) totaling $22 million that are convertible into GS AgriFuels (Hugo) common stock at a price of $3.00 per share. Cornell Capital provided an initial $5,500,000 of this amount at the closing, and will provide the balance of the investment in a series of tranches tied to GS AgriFuels' satisfaction of key benchmarks in its development schedule.
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