SOURCE: Green Planet Group, Inc.
SCOTTSDALE, AZ--(Marketwire - Jul 30, 2012) - Green Planet Group, Inc. (PINKSHEETS: GNPG) announced today that it has negotiated a Settlement Agreement and Mutual Release with ACE American Insurance (ACE) effective July 31, 2012. The impact of this Agreement is very significant and is summarized as follows:
a. Green Planet will purchase 9,955,500 common shares from ACE and return them to its treasury which will reduce the number of shares outstanding by approximately 6%, while increasing shareholder equity for the Company.
b. Green Planet also acquires the two outstanding notes that it issued when it acquired the assets of ESSI. The sum amount of these notes, including unpaid interest, is $5,047,225. These notes will be cancelled thereby eliminating the debt and reducing our liabilities, which will also increase shareholder equity by $5,047,225 (currently more than our current market cap).
c. In addition, Green Planet previously noted in its prior SEC filings that it had potential liabilities of approximately $11 million relating to these legal issues. The signing of the Settlement Agreement cancels these liabilities.
d. The settlement calls for Lumea to make 11 payments of $15,000 through October 2013 and then make a balloon payment of $85,000 plus accumulated annual interest at 6% in November 2013. The total principal paid will be $250,000. In addition, with every $15,000 payment ACE returns one million shares to Green Planet's treasury.
Edmond L. Lonergan, President and Chief Executive Officer, stated, "This negotiation has been ongoing for months and we are pleased that it resulted in an agreement whereby $5,047,225 of debt and over $11 million of potential liabilities have been eliminated. Also, 10 million shares have been reduced from our public float, therefore this settlement has significantly increased shareholder value and paves the way for the Company to move forward with much stronger financial fundamentals and these issues put to rest."
Within the next few days, Green Planet will submit an 8-K filing to the SEC with a complete copy of this settlement. Please go to www.sec.gov to review the settlement in its entirety.
About Green Planet Group
Green Planet Group, Inc. (PINKSHEETS: GNPG) is based in Scottsdale, Arizona and engages in ongoing research and development to create products and services that enhance our environment. The Company's revenues are currently derived from the production and distribution of fuel-based energy conservation and clean-air products, as well as through the placement of members of the growing ranks of the unemployed into meaningful "green collar" careers. For additional information, please visit www.greenplanetgroup.com.
SAFE HARBOR: Certain information included herein may contain statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities. Such forward-looking information is subject to changes and variations which are not reasonably predictable and which could significantly affect future results.