July 12, 2013 13:42 ET

Formation of GNAC, LLC

NEW YORK, NY--(Marketwired - July 12, 2013) - William Bethell announces the formation of GNAC, LLC, a special purpose entity to acquire the note due Gemini Strategies from Green Ballast, Inc. Mr. Bethell was the former Chief Financial Officer and a board member of Green Ballast and was terminated by its "inside board" after a series of disagreements over the operation of the company. 

Based on the most recent SEC filings, in light of the Green Ballast's cash position, retained deficit, high overhead, mounting payables and lack of revenues it is unlikely that the note will be paid on its 7/15/13 maturity date. 

GNAC believes that the issue for the present note holder, excluding the technology and management execution risk, is which is worth more?

  1. the GNAC cash offered to purchase the note - inclusive of the offer to permit them to convert their warrants into common stock at no cost, or
  2. how long it will take Green Ballast's stock price to rise in light of the number of shares outstanding a price great enough to allow them to exercise the note's conversion rights and slowly sell of their stock for a greater amount.

Says Mr. Bethell, "The remedies under the default provisions of the Note's Security Agreement are where the value is to the right note holder and not in its underlying collateral in light of today's technological advancements in lighting. The company's stock performance is evidence that a change in management is needed."

Through the acquisition of the note GNAC is committed to serving the rights and interests of those GBI shareholders who purchased stock from the company.

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