Green Automotive Company Announces Initiative to Enhance Net Stockholders Equity

RIVERSIDE, Calif., Dec. 15, 2014 /PRNewswire/ -- Green Automotive Company (OTC Pink: GACR) announced today that the Company is planning to implement an initiative to enhance its net stockholders equity.

Green Automotive Company is implementing an initiative that is intended to enhance the value for its stockholders.  Green Automotive Company plans to request approval from its stockholders to amend its Articles of Incorporation and Bylaws to increase its authorized common stock and create a series of anti-dilutive, convertible preferred shares to allow the Company to reconstitute its capital structure.  

The objective, moving forward, is to insulate the Company's primary stockholders from past, present, or future dilution in the open market by providing these anti-dilutive securities as a dividend payment. These shares are restricted for one year, will turn into a predetermined amount of the Company's common stock through issuance resolutions from Company's management, and will convert at the new par value of the Company.  More clarity will be available regarding these corporate actions when the Company mails the Schedule 14-A to its shareholders.

Thereafter, the next step in the initiative is for the Company to use these convertible preferred securities as currency to exchange or novate other of its derivative liabilities that exist on the financial statements in the form of affiliate and non-affiliate debt. The Company anticipates that much of its principal affiliate debt will be retired in exchange for shares of the new series of preferred stock, while the interest will be converted into restricted common stock.  The Company then plans to work with the non-affiliate debt holders to convert interest portion of the mature, secured, debt that is in default into equity in order to remove any future compounding derivative liabilities from the Company's balance sheet.

Carter Read, CEO of Green Automotive Company, said, "The initiative is a blueprint to hopefully acquire and attract investment and equity into our company. We also hope to strengthen investor confidence through stock and cash dividends and remove affiliate and non-affiliate debt from the Company's balance sheet. We also aim to build net stockholders' equity on the balance sheet. This is a process we are committed to forging ahead with, and our resolve to complete those tasks are a function of effort, teamwork, and time."

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/green-automotive-company-announces-initiative-to-enhance-net-stockholders-equity-300010109.html

SOURCE Green Automotive Company

Copyright 2014 PR Newswire