MARIETTA, Ga., June 1, 2012 /PRNewswire/ -- VIASPACE Inc. (OTC Bulletin Board: VSPC) -- and its subsidiary VIASPACE Green Energy Inc. (OTC Bulletin Board: VGREF) today provided an update to shareholders.
On May 31, 2012, the Board of VIASPACE accepted the resignation of Mr. Sung Chang as a director of the company and a Form 8-K was issued announcing the resignation. Chang remains a member of the board of VIASPACE Green Energy and serves as its president.
As part of the acquisition of Inter-Pacific Arts in 2008, Changs LLC, a related party of Chang, holds a $5,131,025 secured 6% promissory note from VIASPACE. Payment on the Note is secured by a guarantee from VIASPACE, VIASPACE Green Energy and its subsidiaries, along with a VIASPACE Green Energy stock pledge agreement and various security agreements. The first installment on the note in the amount of $866,205 plus $632,000 in accrued interest was due on May 14, 2012. Chang received $200,000 towards the 2012 note payment in 2011. VIASPACE, VIASPACE Green Energy or its subsidiaries did not have the available cash to make the balance of the note payment when it was due.
Since May 14, 2012, the Board and Management of VIASPACE (VSPC) have been working with Chang on a remedy that is acceptable to Chang. Dr. Kevin Schewe, VSPC board member who now holds 98 million VSPC common shares, has been leading the negotiations with Chang on behalf of the Board. Schewe commented, "We are making progress in these negotiations for an equitable solution to the company's inability to meet the note payment. Mr. Chang and Chang related parties own more than 400 million shares of VSPC common stock. Our desire is to develop a solution which will be acceptable to Chang and that will also benefit the VSPC shareholders." Additionally, CEO Carl Kukkonen stated, "As a cofounder of VIASPACE in 1998, I am working hard to secure a favorable outcome that will benefit all VIASPACE shareholders, of which I am one. We cannot yet announce the specifics of any proposal we are working on, but rest assured that I will do my best to find a positive outcome for VSPC shareholders and Mr. Chang."
About VIASPACE Inc.
VIASPACE is a clean energy company providing products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil and high-pollutant energy sources. Through its majority-owned subsidiary VIASPACE Green Energy Inc., the Company grows Giant King Grass as a low-carbon fuel for electricity generating power plants, as a feedstock for bio methane production and cellulosic biofuels, and for other low-carbon, renewable energy products. For more information, please go to www.VIASPACE.com or contact Dr. Jan Vandersande, Director of Communications, at 800-517-8050 or IR@VIASPACE.com.
Safe Harbor Statement
Information in this news release includes forward-looking statements. These forward-looking statements relate to future events or future performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Such factors include, without limitation, risks outlined in our periodic filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K for the year ended December 31, 2011, as well as general economic and business conditions; the ability to acquire and develop specific products and technologies; changes in consumer and business demand for the Company's products; competition from larger companies; changes in demand for alternative and clean energy; risks associated with international transactions; risks related to technological change; and other factors over which VIASPACE has little or no control.
SOURCE VIASPACE Inc.