Converted Organics Inc. Announces Stock Dividend
October 22 2008 - 9:00AM
Business Wire
Converted Organics Inc. (NASDAQ:COIN, COINW, COINZ) today announced
a common stock dividend of three (3) shares of common stock for
each twenty (20) shares of common stock outstanding, payable to all
holders of record of the common stock on November 17, 2008. No
fractional shares will be issued in connection with this stock
dividend. This dividend will be paid on approximately December 1,
2008 to all shareholders of record on November 17, 2008. "Converted
Organics believes that the current price of its common stock does
not reflect the long-term value of the Company, and that the recent
turmoil in the world's capital markets has had a burdensome,
negative impact on the shareholders of the Company,� said Edward J.
Gildea, President of Converted Organics. �Therefore, the Board of
Directors has authorized the Company to issue this special 15
percent dividend to our shareholders.� Effect on Warrants Holders
of Converted Organics� Class A warrants who elect to hold the
shares acquired upon exercise of the warrant until the record date
for the dividend will have an effective exercise price for their
shares of common stock of $5.61. The current effective price is
$6.46 per share of common stock, taking into account prior stock
dividends. This 15 percent special stock dividend will effectively
reduce the exercise price of Converted Organics� Class B warrants
to $7.48, as the number of shares to be received upon exercise of
one Class B Warrant will be 1.47 shares of common stock. About
Converted Organics Inc. Converted Organics (NASDAQ:COIN - News),
based in Boston, MA, is dedicated to producing valuable
all-natural, organic soil amendment or fertilizer products through
food waste recycling. The company uses proven, state-of-the-art
technologies to create a product that helps grow healthier food and
improve environmental quality. Converted Organics plans to sell and
distribute its environmentally-friendly fertilizer products in the
retail, turf management, and agribusiness markets. Converted
Organics' fertilizer products will be produced in both a dry pellet
and liquid concentrate. Converted Organics' products have been
tested in numerous field trials for more than a dozen crops with
the result that, on average, the net value of the farmer's crop
increased 11-16%, depending on the particular crop and product
application. This is due, in part, to the disease suppression
characteristics of the product, which reduce or eliminate the need
for other costly, often toxic, crop protection applications.
Increased use of nitrogen in commercial agriculture and turf grass
applications, such as golf courses, has reduced the soil's ability
to absorb nitrogen and other nutrients. Using the products produced
by Converted Organics helps restore the soil by replenishing these
micronutrients. This reduces the amount of nitrogen required in a
virtuous cycle that benefits from long-term use. As a result, use
of the product will reduce chemical run-off to streams, ponds and
rivers, an objective with significant long-term benefits to the
environment. The products have a long shelf life compared to many
other organic fertilizers. In a number of lab and field trials, the
liquid product has been shown to be effective in mitigating powdery
mildew, a leaf fungus that affects most plants and grasses and
restricts the flow of water and nutrients to the plant. The
Company's fertilizer products can be used on a stand-alone basis or
in combination with more traditional fertilizers and crop
protection products. Converted Organics expects to benefit from
increased regulatory focus on organic waste processing and on
environmentally-friendly growing practices. This press release
contains forward-looking statements that are subject to risks and
uncertainties. These forward-looking statements include information
about possible or assumed future results of our business, financial
condition, liquidity, results of operations, plans and objectives.
In some cases, you may identify forward-looking statements by words
such as "may," "should," "plan," "intend," "potential," "continue,"
"believe," "expect," "predict," "anticipate" and "estimate," the
negative of these words or other comparable words. These statements
are only predictions. One should not place undue reliance on these
forward-looking statements. The forward-looking statements are
qualified by their terms and/or important factors, many of which
are outside the Company's control, involve a number of risks,
uncertainties and other factors that could cause actual results and
events to differ materially from the statements made. The
forward-looking statements are based on the Company's beliefs,
assumptions and expectations of our future performance, taking into
account information currently available to the Company. These
beliefs, assumptions and expectations can change as a result of
many possible events or factors, including those events and factors
described in "Risk Factors" in the prospectus, not all of which are
known to the Company. Neither the Company nor any other person
assumes responsibility for the accuracy or completeness of these
statements. The Company will update the information in this press
release only to the extent required under applicable securities
laws. If a change occurs, the Company's business, financial
condition, liquidity and results of operations may vary materially
from those expressed in the aforementioned forward-looking
statements. COIN-G
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