updated 1/6/2011 9:17:30 AM ET 2011-01-06T14:17:30

  • Company acquires majority interest in GoLocalProduceRI in all stock transaction
  • Will produce $1 million accretive revenue in 2011
  • First TerraSphere vertical farming facility in the U.S.

BOSTON, Jan. 6, 2011 (GLOBE NEWSWIRE) -- Converted Organics Inc. (Nasdaq:COIN) announced today that the Company purchased the majority ownership interest of the vertical farming entity, GoLocalProduceRI, LLC marking its entrance into the vertical farming industry as owners and operators of what is expected to be the first TerraSphere facilities in the United States.

"The opportunity in Rhode Island is exciting in that it provides both an opportunity to deliver $1 million in sales in 2011 and close to $3 million in 2012 to Converted Organics, and the opportunity to control the project to ensure the prompt development of the TerraSphere business model," says Edward J. Gildea, president and CEO of Converted Organics. "We have to sacrifice some license fee income in 2011 by acquiring the business, but we will more than make up for that with produce sales from the facility." 

Erin Carroll, local operator of GoLocalProduceRI, LLC, adds, "The addition of Converted Organics as majority owner of our project is a great addition to our company. We are confident that their expertise and the additional resources they bring will enhance our ability to offer top quality produce to the New England market."

Approximately 73% of the lettuce consumed in the United States travels an average of 1,500 miles from either Arizona or California, before it reaches the dinner table. Constructing a TerraSphere facility in the Northeast, which will produce various types of lettuces, will eliminate harmful carbon emissions caused by extensive transportation while providing a year-round supply of fresh, local and sustainable produce to New Englanders. The GoLocalProduceRI vertical farm will be a flagship facility for TerraSphere Systems in the United States, and is expected to be operational in June of 2011.

About Converted Organics Inc.

Converted Organics' (Nasdaq:COIN) mission is to promote, develop and operate profitable innovative clean technologies that contribute to the improvement of our environment by use of sustainable business practices and the judicious use of natural resources. Converted Organics Inc. is currently composed of three primary lines of business at the intersection of Agriculture, Water and Waste Recycling. Each business contributes to our mission and uses sustainable business practices that protect and value the environment. The three lines of business are Organic Fertilizer (Converted Organics), Vertical Farming (TerraSphere Systems - www.terraspheresystems.com ), and Industrial Wastewater Treatment (Industrial Wastewater Resources).

The Converted Organics Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7431

This press release contains forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. In some cases, you may identify forward-looking statements by words such as "may," "should," "plan," "intend," "potential," "continue," "believe," "expect," "predict," "anticipate" and "estimate," the negative of these words or other comparable words. These statements are only predictions. One should not place undue reliance on these forward-looking statements. The forward-looking statements are qualified by their terms and/or important factors, many of which are outside the Company's control, involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially from the statements made. The forward-looking statements are based on the Company's beliefs, assumptions and expectations of our future performance, taking into account information currently available to the Company. These beliefs, assumptions and expectations can change as a result of many possible events or factors, including those events and factors, not all of which are known to the company, described most recently in the "Risk Factors" section in the Company's most recently filed annual report on Form 10-K. Neither the Company nor any other person assumes responsibility for the accuracy or completeness of these statements. The Company will update the information in this press release only to the extent required under applicable securities laws. If a change occurs, the company's business, financial condition, liquidity and results of operations may vary materially from those expressed in the aforementioned forward-looking statements.

COIN-G

CONTACT: Converted Organics Inc.
         Investor Contact:
         Jim Blackman, 713-256-0369
         PR Financial Marketing
         jim@prfmonline.com
         
         Public Relations Contact:
         info@convertedorganics.com
         (617)624-0111

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 2.48%
$30K home equity loan FICO 5.80%
$75K home equity loan FICO 4.54%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.57%
13.57%
Cash Back Cards 17.91%
17.91%
Rewards Cards 17.15%
17.15%
Source: Bankrate.com