Press Release Source: GreenShift Corporation
GreenShift Provides Update on Restructuring Monday May 14, 8:00 am ET
NEW YORK--(BUSINESS WIRE)--GreenShift Corporation (OTC Bulletin Board: GSHF - News) today is providing its shareholders with an update regarding the Company's planned reorganization, which will result in both debt and expense reductions through the sale of non-core assets and through the consolidation of operations and administration. ADVERTISEMENT
To this end, GreenShift is pleased to announce it has executed an agreement to sell its majority stake in GS Carbon Corporation (OTC Bulletin Board: GSCR - News) to Seaway Capital, Inc. ("Seaway Capital"). Seaway Capital, a growth equity and leveraged buyout company, has agreed to assume up to $500,000 in GSCR's legacy debt, and GreenShift shall retain its current assets by transferring GS Carbon's current investments, intellectual properties and R&D operating subsidiaries to GS CleanTech Corporation (OTC Bulletin Board: GSCT - News).
Seaway Capital (www.seawaycapital.com) was formed in 2002 as a merchant banking company and controls significant stakes in various companies. Upon the closing of the transaction, Seaway intends to merge into GSCR several of its holdings, including that of WiseBuys Stores, Inc., ("WiseBuys") a big box retail chain it founded in 2003 with former Ames Chairman and CEO, Joe Ettore, and former BJ Wholesale executive, Joe LaChausse. WiseBuys currently has five (5) locations representing approximately 230,000 square feet, and it has partnered with other retailers such as Payless ShoeSource, Inc. and KB Toys to expand rapidly in rural markets in primarily former Ames locations. WiseBuys has generated store revenues of over $35 million since November 2003, and, after a brief pause, is now aggressively seeking growth through acquisitions and new store development.
WiseBuys' goal is to add another 30-40 stores over a three year period and achieve annual revenues of about $120 million. Joe LaChausse, WiseBuys' CEO stated, "We feel this critical mass is attainable given the current supply of relatively low cost retail space in rural America. Our initial geographic presence with be New York, Pennsylvania, Vermont, Massachusetts, and Connecticut." WiseBuys' current stores - all in New York State - include Canton, Gouverneur, Hamilton, Pulaski, and Tupper Lake.
This reverse acquisition, which is subject to completion of an audit of WiseBuys and is expected to close in June 2007, would have the effect of transferring GreenShift's majority stake in GS Carbon to Seaway Capital, which is seeking additional investments in media, business services, manufacturing, and technology companies.
GreenShift Chairman and CEO, Kevin Kreisler, added "One of the goals of our planned reorganization is to reduce overhead while we simplify and rationalize our corporate structure. We feel that transferring ownership of GS Carbon's current holdings to GS CleanTech and then assisting GS Carbon in its completion of a material acquisition away from GreenShift helps to accomplish this goal in a way that enhances shareholder value for GreenShift's, GS Carbon's and GS CleanTech's shareholders. Seaway has an experienced management team with a track record for finding and cultivating successful investments and creating value for its shareholders, and we feel that their planned WiseBuys transaction and strategy moving forward have great potential."
About Seaway Capital, Inc.
Seaway Capital, Inc. ("SCI") was formed in 2002 and makes equity and equity-related investments in companies that require expansion capital and in companies pursuing acquisition strategies. SCI also seeks investments in leveraged buyouts and restructurings. Seaway Capital will consider investment opportunities in a number of different industries, including retail, media, business services, and manufacturing. SCI will also consider select technology investments. |