Business
Green PolkaDot Box Issues Shareholder Update: Introduces Plan to Increase Inventory and Achieve Profitability
Green PolkaDot Box Issues Shareholder Update: Introduces Plan to Increase Inventory and Achieve Profitability.
About this update from Green Polkadot Box Inc
[{"type":"text","content":"\nMOUNT PLEASANT, Utah, May 14, 2014 (GLOBE NEWSWIRE) -- Green PolkaDot Box Incorporated (OTC:GPDB) (\"GPDB\" or the \"Company\") announced today that it has entered into an agreement with three of its shareholders, none of whom is an officer, director, or 10% shareholder, to participate in a funding strategy to raise up to $1.9 million dollars for the purpose of increasing inventory and meeting development capital needs for its first Living Produce Growing Center (\"LPGC\") to be erected in central Utah.\n\n\tThe funding plan contemplates that this group of Investors will pledge to sell a total of 700,000 shares of their unrestricted common stock holdings at a price not less than $3.50 per share and then re-invest a major portion of the after tax sales proceeds into GPDB's Perpetual Inventory Fund (\"PIF\"), which pays 18% (APR) on a two-year note. After the loan term ends, these Investors will have the opportunity to purchase common stock up to the value of their loans with interest back at a 20% discount to the then current market price.\n\n\tOne of the three Investors has also agreed to reinvest his net proceeds from the sale of 200,000 shares into the Company's Series A Preferred Convertible stock to support operations and provide funding toward Phase I of the Living Produce Growing Center, scheduled to commence construction this summer conditioned on this funding.\n\n\tGPDB CEO, Rod Smith, explains the value of the Perpetual Inventory Fund and impact on sales and profitability: \"With these proceeds from the investment in the PIF, when received, we can increase inventory levels to match the expected increase in product sales from the growing membership base and achieve profitability sooner.\"\n\n\tThe Company plans to fund its growth through this innovative funding strategy that also helps to minimize shareholder dilution. Smith continues: \"We are fortunate to have investors who believe in our future and are willing to sacrifice their potential gains to help increase inventory levels and meet the anticipated demand for new memberships and products.\"\n\n\tAffiliate Marketing Strategy\n\n\tSince commencement of operations, GPDB has developed its core competencies and refined its product offering to the public. Now GPDB is poised for growth, ready to expand a tried and tested marketing strategy using several affiliate netwo...