“Throughout this process we have continued to improve every aspect of the Company through carefully orchestrated and comprehensive initiatives including significant cuts in SG&A, a significant reduction in raw material costs, consolidation of manufacturing facilities and the recruitment of top notch senior staff,” continued Mr. Allain. “The proposed restructuring will allow our new team the ability to close and deliver on new and exciting partnerships in the business, media and entertainment arenas.”
The Company also announced that it has raised an aggregate of $650,000 via the issuance of a 4% Promissory Note that is due and payable on June 16, 2012. The Note is secured by a mortgage on a parcel of land owned by a subsidiary of the Company located in Silver City, New Mexico. In connection with the issuance of the Note, the subscriber received a five-year warrant to purchase 1,000,000 share of Common Stock of the Company at an exercise price of $1.00, subject to adjustment as provided in the warrant.