SOURCE: Greystone Logistics, Inc.

February 12, 2007 07:00 ET

Greystone Logistics Announces Funding

TULSA, OK -- (MARKET WIRE) -- February 12, 2007 -- Greystone Logistics, Inc. (OTCBB: GLGI), Yorktown Management and Financial Services have agreed to purchase existing finished goods inventory including the Coors Brewing inventory and raw materials plus certain grinding and peripheral equipment, resin contracts, and molds for $2.2 million. CFO Robert Nelson stated, "This transaction provides funding for Coors inventory buildup, pays down $1,900,000 in payables and allows completion of production of pallets for other pending projects. This combination of factoring receivables and sale lease back of some of the company's non core assets provides the company an excellent way to fund 2007 growth. As part of the payables reduction the company will settle a lawsuit with 1607 W Commerce LLC coinciding with the termination of an equipment lease. The parties wanted to see a mutually beneficial resolution to this dispute which was accomplished." The board of directors approved this related party transaction at fair market value of the assets. Yorktown management is owned by Company CEO Warren Kruger.

About Greystone Logistics, Inc.

Greystone is a plastic pallet manufacturer that utilizes patented proprietary technologies and designs to produce high quality, recycled plastic pallets. Greystone serves the beverage, pharmaceutical and other industries.

Forward-Looking Statements

This press release includes certain statements that may be deemed "forward-looking statements" within the meaning of the federal securities laws. All statements, other than statements of historical facts, that address activities, events or developments that Greystone expects, believes or anticipates will or may occur in the future, including the potential sales of pallets, the improvement of operating results or other possible business developments, are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties. The forward-looking statements above could be affected by any of the following factors: Greystone's prospects could be affected by changes in availability of raw materials, competition, rapid technological change and new legislation regarding environmental matters. These risks and other risks that could affect Greystone's business are more fully described in its reports filed with the Securities and Exchange Commission, including Greystone's Form 10-KSB for the fiscal year ended May 31, 2005. Actual results may vary materially from the forward-looking statements. Greystone undertakes no duty to update any of the forward-looking statements in this release.

Contact Information

  • CONTACT:
    Warren F. Kruger
    President and CEO
    Corporate Office
    1613 East 15th Street
    Tulsa, Oklahoma 74120
    (918) 583-7441
    (918) 583-7442
    www.greystonelogistics-glgi.com