ex99_1.htm
EX99.1 Press
Release, dated September 4, 2008, of Eco2 Plastics, Inc., announcing
the Bridge Financing
Exhibit 99.1
ECO2
Plastics, Inc. Announces Bridge Financing up to $5 Million in Convertible
Notes
ECO2
Plastics, Inc. (otc:ecoo) announced today that it is continuing its bridge
financing of $3.5 to $5 million in Convertible Notes, announced last week.
The Company sold $550,550.00 of notes and related common stock purchase warrants
at an initial closing on August 28, 2008 and expects the balance of the
financing to close by September 15, 2008. The purposes of the
financing are (i) to purchase new equipment for the Company’s proprietary CO2
cleansing equipment and other critical spare parts and equipment; (ii) to reduce
trade payables; and (iii) to fund continuing operations. The Company
undertook the financing primarily due to higher than expected equipment and
installation costs and working capital requirements related to the expansion of
production capacity in the Company’s Riverbank, California processing plant.
This financing will also help fund additional current and future projects and
also support the Company’s ability to meet its ongoing cash and working capital
needs.
The
convertible notes to be offered in this transaction will not be registered under
the Securities Act of 1933, as amended (the “Securities Act”) and may not be
offered or sold in the United States absent registration or an applicable
exemption from registration requirements. The convertible notes are being
offered and sold solely to certain accredited investors in a private placement
pursuant to Rule 506 under the Securities Act. This announcement
does not constitute an offer to sell or the solicitation of an offer to buy such
notes and is issued pursuant to Rule 135c under the Securities Act of
1933.
This press release
may contain forward-looking statements. The Company wishes to caution readers
that certain important factors may have affected and could in the future affect
the Company’s actual results and could cause the Company’s actual results for
subsequent periods to differ materially from those expressed in any
forward-looking statement made by or on behalf of the Company. The Company’s
ability to raise capital necessary to continue to fund operations is subject to
various factors, and it cannot guarantee that it will be able to successfully
close the planned financing within the timelines and in the amounts indicated,
on terms acceptable to the Company, or at all. If the Company is
unable to raise necessary capital, it will need to reduce operating expenses,
delay plans to expand production capacity, and its ability to respond to
unanticipated requirements and continue operations would be limited, all of
which would have a material adverse effect on the Company’s business, financial
condition and results of operations. Even if the Company raises the capital from
the financing as planned, there can be no assurance that the equipment will be
successfully installed and implemented in a timely manner, that production
capacity will be successfully expanded, or that the company will not have other
unanticipated cash needs in the near term. This press release
is qualified in its entirety by cautionary statements and risk factor
disclosures contained in the
Company’s Securities and Exchange Commission filings, including in its
Quarterly Report on Form 10-Q for the period ended June 30,
2008.