Business & Finance
Business and Finance
Business and Finance
Wed, March 9, 2011
Tue, March 8, 2011 Global Ecology Updates Stockholders on Thermal Solar Energy Project in India
MONTCLAIR, NJ--(Marketwire - March 8, 2011) - Peter Ubaldi, President & CEO of Global Ecology Corporation (
"On Friday March 4, 2011, we announced the signing of a Letter of Intent with Esoft Informatics Pvt, Ltd, of Noida, India. The purpose of this agreement is to establish certain parameters for a business venture which will be a partially owned subsidiary; GEC Energy Corporation. This new entity will be 25% owned by Global Ecology Corporation and 75% owned by Esoft and its principals. We have performed the preliminary due-diligence and are satisfied as to the validity of the funding sources that have been engaged by Esoft.
The initial venture for the new subsidiary will be the development of a six megawatt solar power plant, which hopefully will be the first of several throughout India. In addition, Esoft will serve as a distribution partner for our portfolio of products throughout India. We believe that this partnership is an excellent way for our company to establish a footprint in India without having to expend the costs associated with international expansion. We are excited to be part of such an innovative project that is in line with our environmental mission.
We are moving ahead with the preparation of all the operative documents and we are attempting to close this transaction as quickly as possible, however, we can provide no assurances that we will be able to consummate the proposed transaction. Funding for the venture will be the responsibility of Esoft. Global Ecology Corporation will not be required to provide any capital for GEC Energy Corporation. In addition, all fees needed to process the Standby Letter of Credit, Bank Endorsements, Full Bank Responsibility, Swift Transfer from a Prime Bank and Lines of Credit are the responsibility of Esoft. These fees can exceed 15% of the gross loan amount needed to fund the project. There are no upfront costs, including consulting fees, which will need to be advanced by our company.
It is our intention that at some point in the future that we will dividend the 25% stake in GEC Energy Corporation to our existing shareholders in accordance with the percentage of common stock they each have in Global Ecology Corporation at the time the dividend is declared. Pursuant to the terms of the transaction, the Chairman of Esoft has agreed to pay $500,000 for the right to purchase 5,000,000 shares of Global Ecology Corporation common stock at $0.50 per share.
We believe the successful completion of all aspects of the Esoft transaction will result in added value for our stockholders and working capital for Global Ecology Corporation. We will keep you updated as we move forward and the transaction materializes. Thank you for your continued support. Sincerely, Peter D. Ubaldi, President & Chief Executive Officer"
Forward-Looking Statements
This stockholder contains certain forward-looking statements (under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) with respect to whether Global Ecology Corporation's ability to complete the transaction with Esoft, whether the proposed business transaction will be financial and strategically beneficial to our company, whether Esoft purchase of our stock at $.50 will be beneficial to our company at the time the stock sale is consummated and whether or not the proposed transaction will result in added value for our stockholder and provide working capital to our company. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: uncertainties relating to changes in general economic and market conditions; uncertainties regarding changes in the environmental remediation and solar power industries; the uncertainties relating to the implementation of our global business strategy; and other risk factors as outlined in the company's periodic reports, as filed with the U.S. Securities and Exchange Commission. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events. We claim the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
