HDS International Enters into Financing Agreement Providing for Immediately Available Funding
PROVIDENCE, R.I., Aug. 18, 2011 /PRNewswire/ -- HDS International Corp. (OTCQB: HDSI), a provider of industrial ocean-based biomass production and other high-value eco-sustainability solutions, today announced that it has entered into a financing agreement with certain accredited investors, providing for, among other things, immediately available funding.
Under the terms of the financing, Wiremu, Inc. will make available under a convertible promissory note the aggregate principal amount of $500,000 to HDS, bearing simple interest of 3.0% and due and payable February 2013, unless previously prepaid in full at the sole discretion of the Company. The note, or any part thereof, is convertible at the Company's sole discretion into shares of common stock of the Company at a conversion price of $0.25 per share.
"Today's announcement dramatically strengthens HDS' overall financial position, balance sheet and liquidity profile, and represents a significant milestone in the Company's restructuring plan to transform HDS into a leading renewable energy and clean technology company," said Tassos D. Recachinas, HDS' President and CEO. "We believe that the terms of today's announced financing are exceptionally favorable for our shareholders. We expect to apply the proceeds for general working capital and other corporate purposes to execute on our strategy of leveraging our propriety technologies to maximize long-term shareholder value."
The Company did not use a placement agent and did not incur any brokerage or related fees in connection with the transaction.
About HDS International Corp.
HDS International Corp. (OTCQB: HDSI), based in Providence, RI, is a green technology company providing carbon capture and sequestration solutions, as well as industrial, all natural ocean-based algae farming solutions for the production of renewable, sustainable, and economically viable biofuels, bioproducts, and carbon elimination. Our licensed technologies provide us with an attractive strategic position and competitive advantages within our markets, which include renewable energy and environmental and eco-sustainability.
The Private Securities Litigation Reform Act of 1995 provides a 'safe harbor' for certain forward-looking statements. Statements in this press release that relate to HDS International Corp.'s future plans, objectives, expectations, performance, events, reports made by others and the like, including a statement about the assumptions underlying a forward-looking statement, are forward-looking statements protected by the safe harbor. Investors should understand that future events, risks and uncertainties, individually or in the aggregate, are factors that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. These factors could include changes in economic conditions or government policies that may change the demand for the Company's products and services and could include other factors discussed in the sections of the Company's report on Form 10-K for the year ended December 31, 2010 as filed with the U.S. Securities and Exchange Commission, entitled 'Business,' 'Management's Discussion and Analysis of Financial Condition and Results of Operations' and 'Risk Factors.' This release is comprised of interrelated information that must be interpreted in the context of all of the information provided and care should be exercised not to consider portions of this release out of context. Investments in the Company should be considered speculative and prior to acquisition, should be thoroughly researched. HDS International Corp. does not intend to update these forward-looking statements prior to its reporting of its quarterly or annual results.
SOURCE HDS International Corp.