INSEQ Reduces Debt by $1.5 Million
NEW YORK--(BUSINESS WIRE)--Feb. 3, 2006--
INSEQ Corporation (OTC Bulletin Board: INSQ) today announced that GreenShift Corporation (OTC Bulletin Board: GSHF), the majority shareholder of INSEQ, has agreed to assume debt issued by INSEQ to Highgate House Funds, Ltd. in the amount of $1,150,369. Additionally, on February 2, 2006, Cornell Capital Partners, LP, converted $404,139 of debt into common stock, which amount equaled the entirety of the principal and accrued interest on additional convertible debentures issued by INSEQ to Cornell. The completion of these transactions will result in the reduction of INSEQ's total debt by $1,554,508.
Kevin Kreisler, INSEQ's chairman, said that "This is an important stride forward for INSEQ. While INSEQ completed a number of acquisitions during 2005, these debentures had made it difficult for INSEQ to complete transactions and execute on its business model. Their elimination now allows INSEQ to focus on doing so. Moving forward, INSEQ's focus is on three key activities: organic growth of INSEQ's Warnecke Design, Air Cycle and Electronic Scrap operations, completion and market support of INSEQ's new online green products marketplace, and targeting and completing strategic acquisitions."
"On the organic growth front, Warnecke Design, INSEQ's specialty manufacturing group, has seen an increase in demand for biofuels equipment - from both within and outside of the GreenShift portfolio. INSEQ's expectation is that it will commence work on and receive orders for as many as a dozen biofuels projects this quarter. Each project is expected to correspond to revenues ranging from $500,000 to in excess of $1.0 million. Our expectation is that INSEQ will continue to see additional orders of this magnitude throughout 2006 and that these projects will likely require some standard working capital and other financing. INSEQ's first priority will be on executing on these orders. While INSEQ hopes to restructure and complete its currently targeted acquisitions, INSEQ is accordingly re-assessing its financing and acquisition criteria based on these important recent developments."
About INSEQ Corporation
INSEQ Corporation is a publicly traded company whose mission is to directly facilitate the efficient utilization of natural resources including metals, chemicals, fuels and plastics. More information on INSEQ is available online at www.inseq.com.
INSEQ is 80% owned by GreenShift Corporation (OTC Bulletin Board: GSHF), 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.
Safe Harbor Statement
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of INSEQ Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Source: INSEQ Corporation
