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Green Hygienics enters into USD2.6m equity transaction with Ironridge Consumer Co

Green Innovations has settled over USD2.6m in trade payables, removing these obligations from its balance sheet, in exchange for the issuance of shares of its common stock to Ironridge Consumer Co, an institutional investor specialising in direct equity investments in consumer product companies.

As a result of the transaction, Green Hygienics, a wholly-owned subsidiary of Green Innovations, has turned strategic payables on the balance sheet into equity. In addition to significantly strengthening the balance sheet, the transaction will enable the company to focus on increasing sales and its ongoing efforts to develop high-quality eco-friendly products made from sustainable and tree-free resources such as bamboo.
All of the financing is being used to pay for the company’s cost of goods to supply its customers, allowing Green Innovations to immediately fill growing product demand and creating free cash flow that can be used to drive future growth.
"There is growing consumer demand for earth-friendly biodegradable products like those of Green Innovations," says John Kirkland, managing director of Ironridge Global Partners. "According to the 2013 Small Business Sustainability Report, growth rates of green product segments are outpacing traditional alternatives. Ironridge Global is very pleased to be able to facilitate putting more of Green Innovations’ products on more shelves in more stores. It’s good for the company, consumers and the planet."
The marketplace for tissue paper products, nappies, wet wipes, feminine care products, and adult care products, is in excess of USD29 in annually in the US. According to the 5th Annual Tork Sustainability Study, 78 per cent of US consumers now buy green products and services, up from 69 per cent last year. Green Innovations seeks to capitalise on this growing trend to increase its market share and revenues.
"We are encouraged by the marketplace and consumer adoption of eco-friendly products," says Philip Rundle, chief executive of Green Innovations. "Since our product development and marketing is based on consumer demand, we are in the perfect position to capitalise on these trends. Our partnership with Ironridge provides us with the resources needed to focus on growth."

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