SOURCE: GREM USA

March 19, 2008 10:30 ET

GREM USA Issues Statement Regarding Share Structure and Market Valuation of Common Shares; Reduces Debt by Over $130,000

FORT WAYNE, IN--(Marketwire - March 19, 2008) - GREM USA (OTCBB: GRMU), an emerging leader in the design and manufacturing of custom hand-crafted and mass produced electric guitars, today released a statement addressing several investor inquiries regarding the current corporate share structure and operational outlook following the Company's recent share consolidation in February.

At the open of business on March 18, 2008, there were approximately 238,000,000 shares outstanding giving the company a current market capitalization of less than $300,000. This existing valuation is less than the Company's assets, is not reflective of the Company's business prospects, and is even valued below the typical selling price of a OTCBB-listed "shell company" with no operations whatsoever. While the Company cannot control the day-to-day trading of its common stock, investors are reminded that the smallcap financial markets are ripe with companies trading inconsistent with their true value. The Company firmly believes upon examination of its business plan, growth prospects, and increasing interest from industry and world-renown recording artists, that the Company's common shares are greatly undervalued. GREM USA reaffirms its commitment to its shareholders that the Company is well positioned for long-term success.

The Company is pleased to announce that since the February share consolidation, over $130,000 of corporate debt has been removed from the Company financials. These debt reductions were achieved by Company debtors agreeing to convert their debt into GREM USA equity, and it is anticipated that additional debts will be converted to equity as the Company seeks to continue to strengthen its balance sheet. The Company is on track to eliminate its entire debt, presently under $700,000, by the end of the current calendar year. Following the elimination of debt, the Company has received strong financial support from its management which has further solidified the Company business plan.

In regards to the Company's operational viability, investors are encouraged to attend the Company's upcoming open house to examine all facets of the GREM USA production facility. In addition to GREM USA management, the Company is pleased to announce that former Firehouse guitarist Bill Leverty will be on-hand for a 'meet and greet,' photographs, and to provide a once-in-a-lifetime guitar clinic for interested participants. The Company is developing a consistent following among musicians and enthusiasts with its industry-best line of guitars, and management is pleased with the progress of securing the previously-released $10,000,000 retail sales agreement with a major US retailer.

Edward Miers, President of GREM USA, noted, "Over the last 14 months I've personally invested over $210,000 into GREM, and within the next six months I'm committing to re-invest a minimum of $250,000 more. I've been asked often about my feelings regarding the Company share price, and while I will reserve my opinion about where I believe the valuation should be, I will share that if a man or woman walked into my office with a certified check for a figure even ten times the current market capitalization for our company, I would decline it without hesitation. We're literally opening the door to our business with our open house in the near future, and would additionally be happy to accommodate shareholders to visit our facility at any other time as well. We understand that there will always be those with a very short-term interest in our Company, and to some extent we acknowledge that such is necessary in a public market, but there is no doubt in my mind that what we're building is a very solid, long-term investment vehicle for those who have the patience and foresight to recognize it. We're in the business of selling guitars, and though it is necessary from time to time to utilize our share equity, we know there is much more value in developing a strong brand, building a quality product for our customers, and promoting something we all love, music."

Shareholders wishing to confirm the share data may openly contact the Company transfer agent. Those seeking additional information may contact the Company President, Edward Miers, directly.

About GREM USA

GREM USA is a publicly traded company focusing on design and manufacturing of custom hand crafted and mass-produced electric guitars. For more information, visit our website at http://gremusa.com/.

This press release contains certain "forward-looking" statements as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements which are not historical facts, are forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties. There can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to the Company's ability to consummate and complete operations, the Company's access to future capital, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors that may be identified from time to time in the Company's public announcements. The Company undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

This press release is provided for information purposes only and is not intended to constitute an offer to sell or a solicitation of any offer to buy securities.

Contact Information

  • Contact:
    GREM USA
    Edward Miers
    260-456-2354