GreenShift Corporation (OTC Bulletin Board: GSHF – News) today announced that it has received a commitment from its chairman and chief executive officer, Kevin Kreisler, for a capital contribution of $100,000 to reduce GreenShift’s debt. Under the terms of the commitment, GreenShift will receive a capital contribution of $100,000 in July 2005 that must be applied to the reduction of GreenShift’s equity-based convertible debentures. Mr. Kreisler will receive no additional equity or debt in return for the investment.
“GreenShift’s plan is to reduce as much as possible of its convertible debentures out of its cash flows and with the proceeds of its investments,” said Kevin Kreisler, GreenShift’s chairman and chief executive officer. “We do not expect to realize gains on some of our investments until later this year and we are not expecting to produce any meaningful cash flows until 2006. Our plan in the meantime is to manage our cost of capital to minimize dilution as much as possible as we develop and support our portfolio companies and complete strategic investments.”
“I believe very strongly in our mission and I am committed to supporting it in any way I can,” continued Kreisler. “Given my own majority equity stake in GreenShift, I felt it was more important on this investment to enhance GreenShift’s net asset value in a way that minimizes additional dilution twice over — first, by structuring my investment as a pure capital contribution and, second, by requiring that the proceeds be applied to the reduction of GreenShift’s equity-based convertible debentures and thereby reducing potential future dilution.”
Kevin Kreisler currently holds 47,440,678 shares of common stock and 1,000,000 shares of preferred stock. The preferred stock is convertible on January 1, 2007, into the lesser of 50,000,000 shares of common stock or that amount of shares of common stock such that, when taken with the balance of Mr. Kreisler’s other common shares, Mr. Kreisler shall have no more than 80% of the issued and outstanding common stock of the Company at the time of conversion.
About GreenShift Corporation
GreenShift Corporation is a publicly traded business development company (BDC) whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and contribute to the resolution of environmental challenges.
BDCs are regulated by the Investment Company Act of 1940 and are essentially publicly-traded equity funds where shareholders and financial institutions provide capital in a regulated environment for investment in a pool of long-term, small and middle-market companies through the use of senior debt, mezzanine financing, and equity funding.
GreenShift plans to use equity and debt capital to support and drive the value of its existing portfolio of companies and to make investments in a diversified mix of growth stage public and private businesses and technologies that facilitate the efficient use of natural resources and contribute to the resolution of environmental challenges. GreenShift’s current portfolio includes investments in the following environmentally proactive companies:
* Veridium Corporation (OTC Bulletin Board: VRDM – News); * Inseq Corporation (OTC Bulletin Board: ICDT – News); * GreenWorks Corporation; * GreenShift Industrial Design Corporation; * Coriolis Energy Corporation; and, * TDS (Telemedicine), Inc. (Pink Sheets: TDST – News).
In addition, GreenShift hopes to add investments in wind power, hydropower, practical centralized applications of hydrogen power, alternative fuels, infrastructure and mining to its portfolio during 2005 and 2006.
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