Vista, CA -- EcoBlu Products, Inc. announced today that on February 14, 2011 the Company entered into an investment agreement and a Credit and Warrant Agreement with Manhattan Resources Limited, a publicly traded Singapore Corp.
On February 15, 2010, the Company received payment of $5,000,000 for 81,000,000 of our common shares pursuant to the Investment Agreement. After Manhattan receives shareholder approvals an additional $5,000,000 in the form of a revolving credit line will be made available for use by the Company. The revolving credit line will bear interest at 6% per annum. 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.
Those interested in EcoBlu Products, Inc. and detailed information related the contents of this press release are directed to our Current Report filed on Form 8K with the Securities and Exchange Commission on the date of this press release.
About Manhattan Resources Limited,
Manhattan Resources Limited, through its subsidiaries and joint ventures, provides logistics, production, and other support services to the coal mining and oil and gas industries in Indonesia. The company engages in the ship chartering and provision of freight services, primarily for coal carrying activities; and leasing of mining equipment and machinery. It also provides agency, handling, and consultancy services; and coal mining ancillary services. The company is based in Singapore.
About EcoBlu Products, Inc.
EcoBlu Products, Inc. is a manufacturer of proprietary wood products treated with an eco?friendly proprietary chemistry that protects against fire, mold/mycotoxins, fungus, rot?decay, wood ingesting insects and termites with EcoBlu’s WoodSurfaceFilmTM and FRC™ technology (Fire Retardant Coating). EcoBlu products, “Good WoodTM” utilizing patent pending technology is the ultimate in wood protection, preservation, and fire safety to building components constructed of wood; from joists, beams and paneling, to floors and ceilings. EcoBuilding Products, Inc. is a registered DBA of EcoBlu Products, Inc.
SOURCE: EcoBluProducts Inc.
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