SOURCE: SGD Holdings

February 16, 2011 09:10 ET

SGD Holdings, Ltd. Reduces Debt Structure

VENTURA, CA--(Marketwire - February 16, 2011) -   SGD Holdings, Ltd. (PINKSHEETS: SGDH), parent company of premier environmentally friendly paper products manufacturer EcoPaper, inc. (www.ecopaper.com), today announced that the company is continuing efforts to reduce its debt structure through a stock conversion deal with Harry Johansing, the company's CEO.

SGD Holdings currently has notes outstanding in the amount of $528,992. Johansing holds a note from SGD Holdings in the amount of $71,992.23. Johansing is forgiving $50,000 of that note in exchange for 714,286 shares of SGD Holdings' restricted stock at .07 per share leaving $21,992.23 plus accrued interest that will remain outstanding and payable to Johansing upon maturity of the note. The transaction reduces SGD Holdings' overall debt by nearly ten percent. 

"This is a mutually beneficial situation," said Johansing. "As the company seeks tier 1 financing to continue its current pattern of growth, debt reduction is crucial to allowing us to deliver our high-quality, environmentally friendly products to a broader audience of international consumers. I believe this conversion will create additional opportunities for our family of companies and for our investors."

Forward-Looking Statements: The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from acquisitions or actions in development, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes and delays in plans and schedules, or market acceptance. SGD Holdings, Ltd. undertakes no duty to update these forward-looking statements.

Contact Information

  • Contact
    Harry Johansing
    805-644-4462