GMTI- starting to move on today's big news-
Wednesday February 17, 8:34 am Eastern Time
Company Press Release
GreenMan Tech. Signs Investment Banking and Corp. Financing Agreement With Schneider Sec. to Support Its Internal-Growth as Well as Mergers-and-Acquisitions Strategy
LYNNFIELD, Mass.--(BUSINESS WIRE)--Feb. 17, 1999--GreenMan Technologies Inc. (Nasdaq:GMTI - news; Nasdaq:GMTW - news; BSE:GMY)(BSE:GMYW) today reported that it has signed an investment banking and corporate financing agreement with Denver-based Schneider Securities Inc.
Schneider Securities, founded in 1985, is a full-service national investment bank and corporate finance firm with 25 offices across the U.S., offering a wide array of products and services. Schneider Securities originates public and private placement offerings, as well as mergers and acquisitions, including companies in high technology, telecommunications, energy, healthcare and special niche industries.
''We are very impressed by GreenMan's turnaround momentum. The Company's financial results for the first quarter of fiscal 1999 showed revenues increased by 50 percent and operating profit was more than 100 percent better than the operating profit reported in their four-month transition period. We are very confident that GreenMan's management team not only will continue to move the Company forward, but also attract capital as well,'' said David J. Mura, senior vice president for corporate finance, Schneider Securities.
''We are pleased to consummate a long-term relationship with a well-respected investment banking firm such as Schneider Securities. This relationship, certainly, will be a critical factor in achieving our aggressive-growth plans,'' said Robert H. Davis, president and chief executive officer of GreenMan Technologies.
In exchange for the services to be provided by Schneider Securities, GreenMan Technologies has agreed to pay to Schneider Securities cash compensation, and to issue to Schneider Securities unregistered shares of GMTI common stock that will be locked up for 18 months, and warrants -- more than half of which will be exercisable after the first anniversary of the agreement, and the remainder exercisable after the second anniversary.
Already the second-largest U.S. scrap tire-recycler, GreenMan Technologies intends to become the leading company in the industry.
''Safe Harbor'' Statement: Under the Private Security Litigation Reform Act
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or collectively impact the matters herein described, including but not limited to product acceptance, economic, competitive, governmental, results of litigation, technological and/or other factors outside the control of the Company, which are detailed from time to time in the Company's SEC reports, including the report on Form 10-Q for the quarter ended December 31, 1998. The Company disclaims any intent or obligation to update these forward-looking statements.
Visit the GreenMan Technologies Web site on the Internet -- greenman-tech.com
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