EarthShell® Corporation (NASDAQ:ERTH), innovators of environmentally preferable food service packaging, and Acqua Wellington North American Equities Fund, Ltd. announced today that they have entered into a stock purchase agreement providing up to $60 million in funding. Under the agreement, Acqua Wellington will purchase, at EarthShell’s request, at least $2.5 million of EarthShell’s common stock each month during the next 12 months. Acqua Wellington may, at its option, elect to purchase an additional $2.5 million of EarthShell common stock each month. The price for each segment of stock purchased will be based on prevailing market prices each month.
In making the announcement, Scott Houston, Chief Financial Officer of EarthShell Corporation, noted, “We are very pleased with the Acqua Wellington financing and believe the structure of the transaction minimizes dilution to our shareholders. In combination with reduced operating expenses and the move toward standardized equipment, we expect this financing to provide all the funding necessary to establish commercial revenues with our joint venture partners across a range of EarthShell products. Coupled with the company’s existing cash balance and debt-free position, we expect to have sufficient capital to enter the marketplace.”
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EarthShell Packaging is considered an environmentally preferable alternative made from a new-to-the-world composite material, which consists primarily of abundant limestone, potato starch, water and protective coatings. The manufacturing process is clean and energy efficient. It uses less total energy and results in low greenhouse gas emissions when compared to traditional rigid packaging. EarthShell Packaging is, strong and provides good insulation. It biodegrades in marine and composting environments, and is recyclable through composting.
EarthShell Corporation is engaged in the licensing and commercialization of proprietary composite material technology for the manufacture of disposable food service packaging, such as cups, plates, bowls, and hinged-lid containers. EarthShell Packaging is designed to be cost and performance competitive compared to other food service packaging materials, and also to provide important environmental advantages.
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties of other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s most recent Form 10-K and other documents filed by the Company with the Securities and Exchange Commission.
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