Cargo Connection Logistics Redeems Significant Portion of Series A 6.5 Percent Convertible Promissory Notes Company Pays-Off Convertible Notes, Helps Reduce Outstanding Liabilities and Common Stock Conversion Effect
INWOOD, NY, Apr 06, 2006 (MARKET WIRE via COMTEX) -- Cargo Connection Logistics Holding, Inc. (OTC BB: CRGO) today announced that it had made the decision to redeem the Company outstanding Series A 6.5 percent Convertible Promissory Notes which date back prior to 2005 when the Company was still known as Championlyte Holdings, Inc.
The Company has already begun to redeem these notes. In specific, these notes were from Advantage Fund I, LLC and are either still in their possession or were assigned to other Holders under the same terms and conditions as the original note. While the notes had favorable terms, the conversion ability of these notes potentially hurt the Company by the Holder's ability to convert into and sell additional common shares into the market, potentially causing a downturn in the price per share.
"We are continuing to try and redeem the remaining assigned notes from their current holders," said Cargo Connection Logistics Holding, Inc. CFO Scott Goodman.
In addition to the redemption of the old debt, the Company has terminated its consulting agreement with Knightsbridge Capital.
"The Company will continue to review all former contracts the Company had entered into prior to Cargo Connection Logistics' involvement to determine the value to the Company as well as to the Company's shareholders," said Goodman. "The Company has retained new counsel to examine all of the financial instruments and contracts the Company had in place prior to new management taking control in 2005."
The Company will continue to keep its shareholders advised of all the developing information through its news releases as well as its website.
About Cargo Connection Logistics Holding, Inc.
Company: Cargo Connection Logistics Holding, Inc. consists of Cargo Connection Logistics Corp. and Cargo Connection Logistics - International, Inc. (formally Mid-Coast Management, Inc.), which are both headquartered in Inwood, NY. The Company also has offices in Atlanta, GA; Charlotte, NC; Chicago, IL; Columbus, OH; Miami, FL; New York, NY; Pittsburgh, PA and San Jose, CA. The companies currently provide a comprehensive variety of transportation and warehouse capacity services to shippers throughout the nation. Currently the two companies have a total of 87 employees.
Cargo Connection Logistics is a leader in world trade logistics. Headquartered adjacent to JFK International Airport, the company is a transportation logistics provider for shipments importing into and exporting out of the United States, with service areas throughout the United States and North America. They have container freight station operations specifically designed to handle internationally arriving freight for the major retail suppliers through its CFS facilities in Florida, Georgia, Illinois, New York and Ohio. Cargo Connection Logistics' website is www.cargocon.com.
Contact:
Peter Nasca,
Peter Nasca Associates, Inc.
312-421-0723 Chicago
305-937-1711 Miami
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