Published:
Shareholders Convert $400,000 of Debt at Market Price
SPRINGFIELD, Mo., May 9 /PRNewswire-FirstCall/ -- Decorize, Inc.
(OTC Bulletin Board: DCZI), a recognized leader in the home accent furniture
and accessories industry, announced today that two major shareholders have
agreed to convert a total of $400,000 of their outstanding debt into shares of
the Company's common stock. In addition the Company has negotiated a
reduction in interest rates on an additional $2,100,000 of currently
outstanding debt. By lowering the interest rate on the outstanding debt to
prime and converting $400,000 of outstanding debt into equity, the Company
expects to realize savings in excess of $120,000 over the coming 12 months.
"Over the past few quarters we have begun to see the results of the
investments that have been made in the Company's infrastructure," stated Steve
Crowder CEO of Decorize. "Gross margins have continued to improve and delivery
times to retailers continues to shorten. We now have to leverage our cost
advantage to drive sales and profits."
"This is a significant vote of confidence by our shareholders and
creditors," noted Dan Graham, CFO of Decorize. "These changes in our capital
structure will help the Company drive earnings over the next several quarters
as we fill orders from our successful recent home furnishings market."
Under terms of the agreements debt holders will reduce their interest
rates for the terms of their notes. Shareholders converting a portion of their
debt will convert their shares at $0.20/share.
About Decorize
Decorize, Inc. specializes in designing, manufacturing and delivering the
finest premium home accents directly from its production facilities in
Indonesia andChina to retailers across the U.S. The company has developed a
vertically integrated design, sourcing and logistics model that reduces costs
traditionally channeled into home furnishings. This model allows the company
to remain on the leading edge of the market by identifying trends and
developing product significantly faster than others. Because of its vertical
integration, Decorize is able to serve its customers with shortened delivery
times for custom orders. Decorize serves more than 3,000 retail accounts,
including national brand names such as Stein Mart, Broyhill Furniture
Industries, OfficeMax, Home Depot, May/Federated Stores, Neiman Marcus, Rooms
To Go, and Sears-The Great Indoors. For more information, visit the Decorize
web site at http://www.decorize.com.
Safe Harbor
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: Statements about the future performance of Decorize, economic trends,
and other forward-looking statements in this release are made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that such forward-looking statements involve
risks and uncertainties, including and without limitation, continued
acceptance of Decorize's products, increased levels of competition for the
company, new products and technological changes, Decorize's dependence on
third-party suppliers, and other risks detailed from time to time in
Decorize's periodic reports filed with the Securities and Exchange Commission.
Decorize provides no assurance regarding the actual outcome of the events
contemplated by any forward-looking statements included in this release.
Contact
Decorize, Inc.
Steve Crowder, CEO
(417) 879-3326
s.crowder@decorize.com
SOURCE Decorize, Inc.
Copyright © 2009, PRNewswire
Copyright © 2009, NewsBlaze,
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