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GroGenesis Announces Reduction of 20 Million Shares OutstandingJuly 18, 2016
SIOUX FALLS, S.D., July 18, 2016 (GLOBE NEWSWIRE) -- GroGenesis, Inc. (OTCQB:GROG), a global sustainable agriculture company and producer of AgraBurst PRO™, a premium organic, non-GMO nano-surfactant for fertilizer manufacturers and commercial lawn & turf companies, announced today the exchange of 20 million shares of common stock for 40,000 shares of a proposed new class of preferred stock. The Company now has a public float of 8,800,000 shares.
In consideration for the exchange between two shareholders, each shall receive 20,000 preferred shares with certain redemption and conversion rights. In order to effect this exchange, the Company expects to authorize the preferred stock within the next 60 days. The details of the exchange agreements with each shareholder, along with the proposed certificate of designation of the preferred stock will be filed as exhibits to an 8-K with the Securities and Exchange Commission.
Mr. Richard Kamolvathin, President and CEO of GroGenesis said, “With the previously announced cancellation of 5.5 million common shares, this very substantial reduction in our shares outstanding assists immeasurably in providing us with a capital structure that will contribute to our long term success. We believe that the rights and privileges of this preferred stock should reflect positively on our ability to be transparent and supportive of our common shareholders, while being fair to those exchanging them. Our success is predicated on a clean capital structure. As I have stated before, if we succeed, they succeed.”
Mr. Kamolvathin concluded, “What I want to make abundantly clear to our shareholders is that, as we successfully execute our business plan, we will pay out a maximum of $200,000 for these preferred shares if they are redeemed. This recapitalization is significantly different from the typical recapitalization executed by many microcap companies where preferred shares are merely converted back into common shares at a later date—a dilutive event that will not occur with our recapitalization as we meet our milestones.”
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About GroGenesis, Inc.
Headquartered in the heart of the US Farm Belt, Sioux Falls, South Dakota-based GroGenesis is an agricultural services enterprise offering food producers a revolutionary, proprietary, all-natural, non-GMO nano-surfactant which enhances soil and crop health and reduces the health risk to farm workers due to its non-toxic properties. GroGenesis’ flagship product, AgraBurst PRO™, is an all-natural, organic, non-GMO agricultural input which enhances the ability of the plant to more efficiently use the added nutrients incorporated in fertilizers, which results in less fertilizer required. The application of AgraBurst PRO™ can begin the process of improving the health of the soil while minimizing the use of conventional chemical agricultural inputs. For more information, please visit the Company’s website atwww.GroGenesis.com.
Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to, the development of our products, our limited financial resources, our ability to raise the working capital needed to fund the expansion of our current and future distribution commitments, our ability to retain key employees, our competitors’ ability to develop better or less expensive alternatives to our products and the risks and uncertainties discussed under the heading "Risk Factors" in Item 1 of our Annual Report on Form 10-K for the fiscal year ended May 31, 2015, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.
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