VISTA, CA- EcoBlu Building Products, Inc. (OTCBB: ECOB) says it resolved its liquidity problems with an infusion of $5 million capital from Manhattan Resources Limited, a publicly traded Singapore Corporation (SP: MRL).
Eco Building Products manufactures proprietary wood products coated with an exclusive non-toxic, eco-friendly chemistry that protects against mold, rot-decay, termites and fire. The coatings give the wood a distinctive blue or red coloration.
Manhattan Resources Limited paid $5 million, in exchange for 81 million, pending approval by Manhattan Resources shareholders. Funds will come in the form of a revolving credit line for EcoBlue, with a 6 percent interest rate. Concurrently with the creation of the revolving line of credit, Manhattan will receive 50,000,000 5 year warrants to purchase common shares of the Company at an exercise price per share of $0.10.
Prior to entering into these agreements Manhattan acquired approximately $1.2 million of outstanding convertible notes and associated warrants issued by the Company in early 2010. Steve Conboy, CEO of ECOB stated, “We are pleased to announce that the notes totaling approximately $1.2 million will be paid in full with the proceeds from the initial investment. In addition, the Series A through G Warrants issued March 26, 2010, for a total of 26,250,000 shares have already been cancelled. This strategic
financing has helped us recapitalize our balance sheet while providing us with the growth capital we need.”
“We are pleased with the opportunity to invest in Ecoblu and share in the belief that there technology will set the standard for the industry,” said Soo Ching Ho, Chief Executive Officer of Manhattan Resources Limited. “We are confident of the growth prospects of the Company amid the recovery of the U.S. economy,” added Ho.
"We are pleased with the financial support provided and to be working with Manhattan Resources Limited toward the continued growth and success of our new line if ECO Building Products," added Steve Conboy, President and CEO of EcoBlu Products. "Manhattan has shown unprecedented levels of confidence, good faith and support for EcoBlu over the past months working towards these agreements which have resolved some of our past financial difficulties and positioned the Company for future
growth," added Conboy.
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