The agreement will mature on 1 December 2011 and is secured by substantially all of APG’s assets.
In addition, Iowa State Bank agreed to reduce an existing $800,000 certificate of deposit held as collateral to $300,000 in return for a pledge of two million shares of unregistered GreenMan Technologies common shares and a GreenMan Technologies corporate guaranty.
APG used approximately $800,000 of the proceeds to repay an existing note with Iowa State Bank.
The remaining $1.2m balance will be made available as a revolving line of credit as certain agreed upon milestones are achieved.
GreenMan Technologies, through its subsidiaries, provides technological processes and marketing programs for alternative energy, renewable fuels and recycled products.
The company’s alternative energy subsidiaries, APG and APG International (APGI), provide a patented dual fuel technology for diesel engines.
