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Converted Organics Inc. Stockholders Approve Four Stock-Related Proposals at Special Stockholder Meetings

Posted on: Tuesday, 8 April 2008, 06:00 CDT

Converted Organics Inc. (NASDAQ:COIN) announced today that it received stockholder approval on four proposals set forth in the company's proxy statement. Three of the four proposals were approved at a special meeting of stockholders held on Thursday, April 3, 2008. That meeting was then adjourned until Monday, April 7 at 12:00 p.m. EST, at which time the fourth proposal was passed.

The following four proposals were approved by company stockholders:

An amendment to the 2006 Stock Option Plan to increase the number of shares issuable under the 2006 Stock Option Plan from 666,667 to 1,666,667 shares;

An amendment to the 2006 Stock Option Plan to include an "evergreen" provision pursuant to which on January 1st of each year, commencing in 2009, the number of shares authorized for issuance under the 2006 Stock Option Plan shall automatically be increased by an amount equal to 20% of the shares of the common stock outstanding on the last day of the prior fiscal year;

An amendment to the Certificate of Incorporation to decrease the number of authorized shares of the common stock from 75,000,000 to 40,000,000 and decrease the number of authorized shares of the preferred stock from 25,000,000 to 10,000,000;

The potential issuance of common stock equal to or greater than 20% of the Company's common stock upon conversion of notes or shares issuable upon exercise of warrants issued pursuant to a Loan and Securities Purchase Agreement entered into by the Company on January 24, 2008 to finance the acquisition of United Organic Products, LLC and Waste Recovery Industries, LLC.

"We are very grateful to our stockholders for approving all four of the proposals, and thank them for their continued support," said Edward J. Gildea, President and CEO of Converted Organics Inc. "We are excited to be able to grant stock options to the talented and dedicated employees who are responsible for Converted Organics' explosive growth and success, and are pleased that the Company will now pay lower franchise taxes in Delaware."

About Converted Organics Inc.

Converted Organics (NASDAQ:COIN), based in Boston, MA, is dedicated to producing valuable all-natural, organic soil amendment or fertilizer products through food waste recycling. The company uses proven, state-of-the-art technologies to create a product that helps grow healthier food and improve environmental quality. Converted Organics plans to sell and distribute its environmentally friendly fertilizer products in the retail, turf management, and agribusiness markets.

Converted Organics' fertilizer products will be produced in both a dry pellet and liquid concentrate. Converted Organics' products have been tested in numerous field trials for more than a dozen crops with the result that, on average, the net value of the farmer's crop increased 11-16%, depending on the particular crop and product application. This is due, in part, to the disease suppression characteristics of the product, which reduce or eliminate the need for other costly, often toxic, crop protection applications. Increased use of nitrogen in commercial agriculture and turf grass applications, such as golf courses, has reduced the soil's ability to absorb nitrogen and other nutrients. Using the products produced by Converted Organics helps restore the soil by replenishing these micronutrients. This reduces the amount of nitrogen required in a virtuous cycle that benefits from long-term use. As a result, use of the product will reduce chemical run-off to streams, ponds and rivers, an objective with significant long-term benefits to the environment.

The products have a long shelf life compared to many other organic fertilizers. In a number of lab and field trials, the liquid product has been shown to be effective in mitigating powdery mildew, a leaf fungus that effects most plants and grasses and restricts the flow of water and nutrients to the plant. The Company's fertilizer products can be used on a stand-alone basis or in combination with more traditional fertilizers and crop protection products. Converted Organics expects to benefit from increased regulatory focus on organic waste processing and on environmentally friendly growing practices.

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 described in "Risk Factors" in the prospectus, 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.

COIN-G

Source: Business Wire

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