INSEQ Restructures Equity Financing
Monday September 26, 10:00 am ET
MOUNT ARLINGTON, N.J.--(BUSINESS WIRE)--Sept. 26, 2005--INSEQ Corporation (OTC Bulletin Board: INSQ - News) today announced the termination of its $10 million Standby Equity Distribution Agreement ("SEDA") with Cornell Capital Partners. Additionally, INSEQ cancelled warrants exercisable into 300,000,000 shares of registered common stock at $0.001 per share that were previously issued to Cornell as part of the SEDA.
ADVERTISEMENT
Kevin Kreisler, INSEQ's chairman, said that "We had planned to complete our pending acquisition of Independent Metal Sales, Inc. ("IMS") this month with factor-based debt financing as a form of short-term bridge financing pending the payoff of the debt with the proceeds of equity sold under the SEDA. However, the recent performance of INSEQ stock, the aggregate growth capital needs of IMS and our existing businesses, and the anticipated cash needs of our other currently targeted acquisitions require us to use our capital structure differently.
We believe that a better use of our capital today would be to use a less expensive and more flexible source of conventional debt financing that we service exclusively out of cash flows, as opposed to equity sales, and standard equity financing at higher market prices - particularly as compared to the newly cancelled warrants that INSEQ had issued as part of the SEDA which were exercisable into 300 million shares at $0.001 per share. We are accordingly going to delay the completion of the IMS acquisition by about 60 days as we perfect our intended new debt financing," concluded Kreisler.
About INSEQ Corporation
INSEQ Corporation is a publicly traded company whose mission is to directly facilitate the efficient utilization of primary and secondary commodities including metals, chemicals, fuels and plastics. More information on INSEQ is available online at www.inseq.com.
INSEQ is 70% owned by GreenShift Corporation (OTCBB: GSHF - News), a business development corporation whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.
God Bless - No Doubt
cris |
