BOSTON, Mass., Nov. 15, 2010 (GLOBE NEWSWIRE) -- Converted Organics Inc., (Nasdaq:COIN) announced today that the Company has closed on the acquisition of 95% of the membership interests in TerraSphere Systems, LLC, a rapidly growing pioneer in the vertical farming market. Converted Organics Inc. entered into an agreement to acquire TerraSphere Systems, LLC on July 6, 2010. This acquisition was approved by Converted Organics' Shareholders on September 16, 2010 and closed on November 12, 2010. The completion of this all stock transaction is the Company's largest acquisition to date.
TerraSphere designs, builds and operates highly efficient and scalable growing systems, featuring a patented, proprietary technology that utilizes vertically-stacked modules to house rows of plants, which are then placed perpendicular to an interior light source to grow pesticide-free organic fruits and vegetables. Due to a controlled, indoor environment, the system generates fresh produce year-round in any location or climate worldwide.
"The acquisition of TerraSphere expands the Company's portfolio of sustainable, environmentally-friendly green assets and is a continuation of our strategy to grow our business through accretive acquisitions," said Edward Gildea, President and CEO of Converted Organics. Gildea continued, "On a pro-forma basis, TerraSphere contributed more revenues than Converted Organics in 2010, and the combined companies are expected to accelerate our growth in 2011 and beyond. "
Vertical farming provides a valuable urban agricultural model that allows locally grown, fresh, pesticide-free produce to be cultivated closer to population centers, resulting in lower supply chain costs, as well as reduced carbon emissions and fuel costs associated with traditional production and distribution methods. These controlled growing environments protect crops from weather related problems, eliminate the need for synthetic pesticides, herbicides and fungicides, reduce nitrate run-off and help preserve natural resources through a reduction in the need for additional farmland.
As a result of the closing of the TerraSphere acquisition, the Company will now host the Shareholder Conference call to discuss its quarterly results on Tuesday, November 16, 2010 at 10:00 a.m. EST instead of today at 10:00 a.m. as originally scheduled. The purpose of this change is to include in the call a discussion of both the Company's results for the third quarter, which it expects to file today in its Quarterly Report on Form 10 Q, and the impact on the results of the TerraSphere acquisition.
Shareholders who wish to participate in the conference call may telephone (888) 428-7458 from the U.S. or (210) 604-5177 from international locations, approximately 15 minutes prior to the call. A digital replay will be available via a live webcast on the Converted Organics website at under the Investors tab and Events & Presentations submenu.
About Converted Organics Inc.
Converted Organics Inc. (Nasdaq:COIN) () is dedicated to producing high-quality, all-natural, organic soil amendment and fertilizer products through food and agricultural waste recycling. The Company uses its proprietary High Temperature Liquid Composting (HTLC) system, a proven, state-of-the-art microbial digestion technology, to process various biodegradable food wastes into dry liquid concentrate organic fertilizers that help grow healthier food and improve environmental quality. Converted Organics sells and distributes its environmentally-friendly fertilizer products in the retail, professional turf management, and agribusiness markets.
The Converted Organics Inc. logo is available at
About TerraSphere Systems, LLC
TerraSphere Systems () is dedicated to building highly efficient systems for growing organic fruits and vegetables in a controlled indoor environment. TerraSphere's clean technology helps to promote the sustainable consumption of natural resources by accelerating plant production and maximizing crop yields, while improving environmental footprints through the reduction of carbon emissions and fuel use associated with traditional crop production and distribution. TerraSphere's unique, environmentally and socially-responsible business model helps to facilitate job creation and diverse, community-based workforces. TerraSphere believes its technology can potentially revolutionize access to organic produce for both remote and urban communities, alleviate land management issues for agricultural producers, and ease hunger crises for the world's growing population.
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. Forward-looking statements include, the TerraSphere transaction being in the long-term interest of the Company and that TerraSphere makes significant contributions to the combined company going forward. 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 described in the "Risk Factors" section in the Company's most recently filed annual report on Form 10-K, as updated in the Company's quarterly reports on Form 10-Q filed since the annual report, not all of which are known to the Company. 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.
CONTACT: Converted Organics Inc. Investor Contacts: 617-624-0111 email@example.com PR Financial Marketing Jim Blackman 713-256-0369 firstname.lastname@example.org