Business & Finance
Business and Finance
Business and Finance
Thu, March 31, 2011
Wed, March 30, 2011 Global Ecology Updates Stockholders on Esoft Venture for India Solar Project
MONTCLAIR, NJ--(Marketwire - March 30, 2011) - Peter Ubaldi, President & CEO of Global Ecology Corporation (
"Since entering into a Letter of Intent on March 4, 2011 with Esoft Informatics of Noida, India, we have elected to extend our agreement in order for them to complete their funding of our joint venture subsidiary, GEC Energy Corporation.
"Subsequently we received confirmation that the irrevocable, transferable Standby Letter of Credit (SBLC), issued by an S&P AAA Rated Trust, which is the core of the transaction, has been confirmed for transfer to Esoft's prime bank in India from a top 25 corresponding bank of the Trust.
"The amount of this unconditional SBLC is $3,000,000 and Esoft will be given the right to immediately draw down $2,500,000. From this amount, Esoft will provide the initial working capital for GEC Energy Corporation and will pay Global Ecology Corporation $500,000 for the right to purchase Global Ecology restricted stock at a later date. A portion of the funding will be used by Esoft to secure bank responsibility for additional SBLCs to finance the solar energy projects to be developed in India by GEC Energy and to deploy our existing environmental remediation technologies.
"As we reported previously, we are moving forward with the necessary documentation and as soon as the final bank responsibility is received via Swift MT760, the funding will take place. However, we can provide no assurances that we will be able to consummate the proposed transaction. Funding for this venture and the associated financial instruments continues to be the responsibility of Esoft. We will keep you updated with new developments as they become known. Thank you."
About Global Ecology Corporation
Through its extensive network, GEC has obtained licensing rights to several technologies in the water treatment and soil remediation fields. These proprietary applications help reduce algae, bottom sludge, harmful bacteria and hydrocarbon pollution. The GEC treatments are able to provide "green" and if needed, transportable methods to recover the usability of water, soil and land.
Forward-Looking Statements
This news release 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, and whether or not the proposed transaction will result in added value for our stockholders and provide working capital for 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 energy 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.
