GreenMan Technologies, Inc. (OTCBB: GMTI) today announced that it has entered into an agreement with Liberty Tire Services of Ohio, LLC, a wholly-owned subsidiary of Liberty Tire Services, LLC, to sell, subject to shareholder approval, substantially all assets of two wholly-owned subsidiaries, GreenMan Technologies of Minnesota, Inc. and GreenMan Technologies of Iowa, Inc. GreenMan expects the cash proceeds from the transaction will exceed $26 million and, subject to shareholder approval and the satisfaction of customary closing conditions, expects the transaction to close during the fourth quarter of 2008.
GreenMan intends to use approximately $19 million of the proceeds to retire certain transaction related obligations including approximately $13 million due its primary secured lender, Laurus Master Fund, Ltd, under a June 2006 credit facility. GreenMan expects the transaction will greatly enhance the Company's financial position and its ability to secure future growth capital as needed.
