VIASPACE Announces The Separation Of VIASPACE And VIASPACE Green Energy
WALNUT, Calif., Oct. 2, 2012 (GLOBE NEWSWIRE) -- VIASPACE Inc. (OTC:VSPC), today provided the following update to shareholders.
The VIASPACE Board of Directors and Management is pleased to announce that the orderly separation of VIASPACE and VIASPACE Green Energy (VGE) has been completed and formal documents have been signed by VIASPACE, VGE and Mr. Sung Chang on September 30, 2012. As part of the separation agreement, VGE has the right to commercially develop Giant King™ Grass in China and Taiwan and VIASPACE has been granted an exclusive license to import, grow, sell, market and distribute Giant King Grass in the rest of the world outside China and Taiwan. Effective October 1, 2012, VIASPACE no longer has any ownership in VGE and has returned all of the shares it previously held in VGE back to VGE, who subsequently reissued them to Mr. Chang. As part of the separation, the VIASPACE secured debt and accrued interest of approximately $5.6 million owed to Mr. Chang no longer has to be paid. The exclusive license that VIASPACE obtained from VGE has revenue milestones that need to be met every two years in order to maintain the license from VGE. VIASPACE will pay VGE an 8% royalty on net sales derived.
As part of the final agreements, insiders holding approximately 525 million common shares of VIASPACE stock (or 38% of outstanding common shares) have agreed to a 6 month hold of their stock with prohibitions against selling or transferring the stock.Additionally, Director Dr. Kevin Schewe, the holder of 100 million shares of VIASPACE common stock, has entered into a loan agreement with VIASPACE in the form of a secured convertible note where he has agreed to invest $1 million in the company over a 5 year time period. Dr. Schewe has been granted irrevocable proxy to vote the Series A Preferred Stock and that Stock will be transferred to him in 5 years or when VIASPACE reaches a market capitalization of $50 million or higher, whichever occurs first.
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