News Releases

Oct 04, 2011

Global Green Solutions Restructures Operations And Plans to File Notice to Suspend SEC Reporting Obligations

San Diego, CA - Oct 4, 2011 - Global Green Solutions Inc. (the "Company") (GGRN: OTCQB) is restructuring its operations to reduce overhead costs and enable it to raise new capital to continue the final testing and commercialization of its promising Greensteam

TM

technology.


As part of the restructuring, the Company plans to file notice on Form 15 to voluntarily de-register its common shares under the United States Securities Exchange Act of 1934 on October 14, 2011. The Company anticipates that its common shares will then be quoted on the pink sheets quotation system instead of the OTCQB, both of which are operated by the OTC Markets Group Inc. In addition, the Company intends to convert its wholly owned subsidiary, Global Greensteam LLC, into a corporation, which will attempt to directly raise funds for its continued operations. The Company will retain a majority interest in its subsidiary, which intends to resume operations at its demonstration plant as soon as sufficient new investment is received.


By filing the notice, the Company's reporting obligations with the Securities and Exchange Commission (the "SEC") will be suspended immediately and its registration is expected to terminate 90 days later. As a result, the Company will not be required to file certain reports and forms with the SEC, including Forms 10-K, 10-Q and 8-K. However, the Company intends to provide its stockholders with annual audited financial statements and information through future postings on its website and will continue to be required to provide quarterly, annual and other information regarding the Company's performance in connection with its reporting obligations with Canadian securities commissions.


The Company carefully reviewed several different alternatives and in the opinion of the Company's Board of Directors this approach is in the best interests of the Company and its stakeholders. In addition to the significant time and estimated annual cost savings of $200,000 resulting from the suspension of its reporting obligation with the SEC, this course of action will allow management to focus its attention and resources on operating the Company and enhancing shareholder value. The Board believes this outweighs the benefits the Company receives from maintaining its registration with the SEC. The Board evaluated advantages and disadvantages of continuing its registration with the SEC in light of such factors as:

  • the legal, accounting and administrative overhead and costs, both direct and indirect, of the evolving reporting obligations imposed by the SEC;
  • the nature and extent of trading in the Company's common stock on the OTCQB;
  • the market capital value that the public market is applying to the Company; and
  • the substantial diversion of management's time and efforts from the tasks required to grow the Company's business and enhance shareholder value.

Greensteam is a proprietary, highly efficient, advanced combustion process designed to produce renewable energy from biomass with minimal air pollution. The demonstration plant is located in Aera Energy LLC's Belridge oilfield, near Bakersfield, California. Aera Energy is one of California's largest oil and gas producers. The demonstration plant has successfully achieved full steam generation capacity of approximately 5.8 MW (thermal), operating exclusively on woody agricultural biomass fuel with the steam supplied to Aera Energy for its enhanced oil recovery operations. At the end of August 2011, the plant was successfully operating on biomass fuel and had met all performance targets with the exception of emissions. While emissions optimization was clearly progressing, the emissions performance targets that needed to be met prior to starting the Aera Energy-specified performance test had not yet been achieved when the Company ran out of funds.


Global Green Solutions Inc. www.globalgreensolutionsinc.com develops and implements ecotechnology solutions for biomass-derived renewable energy generation. Global Green Solutions Inc. is a U.S. public traded company (GGRN: OTCQB, CUSIP 37947A), with offices in San Diego, Vancouver, Edinburgh, and Bakersfield, CA.


Global Green Solutions Investor Relations


Halsey Johnston, Global Green Solutions Inc.


+1 604.638.4909 (direct)


+1 866.408.0153 (toll free)


haljohnston@globalgreensolutionsinc.com
LEGAL NOTICE REGARDING FORWARD LOOKING INFORMATION
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of federal securities laws. Such forward-looking statements in this release include, the expectation and/or claim, as applicable, that: the Company will convert its subsidiary, Global Greensteam LLC, into a corporation and that sufficient funds will be raised to enable the Company's subsidiary to restart and complete its demonstration plant performance testing. Although the Company believes that the expectations reflected by the forward-looking statements presented in this release are reasonable, the Company's actual results could differ materially from those in such forward-looking statements due to a number of factors and uncertainties. Factors that could cause actual results to differ materially include: our process technology may not perform as expected; we may be unable to retain key employees whose knowledge is essential to the development of our process technology, and we may not be able to raise additional funding sufficient to restart and complete the demonstration plant performance testing. Except as required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Readers should also refer to the Company's periodic reports and other filings filed from time to time with the Securities and Exchange Commission, which are available at www.sec.gov for additional discussion of risks and uncertainties relating to the Company and its business.