India Globalization Capital Announces the Exchange of Outstanding Promissory Note for New Note

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| Source: India Globalization Capital

Bethesda, Oct. 15, 2012 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT: IGC) (NYSE Amex: IGC), a company competing in the rapidly growing materials industry in India and China, announces the filing of an 8-K detailing that it has agreed, subject to customary closing conditions, to exchange an outstanding promissory note for a new note and shares of the Company's common stock.

Pursuant to a 2012 Note and Share Purchase Agreement with Bricoleur Partners, L.P. ("Bricoleur"), the Company exchanged an unsecured promissory note in the principal amount of $1,800,000 at zero percent interest and 3,000,000 shares of the Company's common stock and penalty shares of 171,000 beginning February 1, 2013 for every month that the note remains unpaid for the previously outstanding 2011 Unsecured Promissory Note issued to Bricoleur in the principal amount of $1,800,000 on February 25, 2011. The new note is due and payable on the earlier of (i) December 31, 2012 (the "Maturity Date"), or (ii) upon customary occurrences of an event of default. Like the prior note, the new note may be prepaid in whole or in part at any time without penalty or premium.

About IGC:

Based in Bethesda, Maryland, India Globalization Capital (IGC) is a materials and infrastructure company operating in India and China.  We currently supply Iron ore to Steel Companies operating in China.  For more information about IGC, please visit IGC's Web site at www.indiaglobalcap.com. For information about Ironman, please visit www.hfironman.com.

Forward-looking Statements:

Some of the statements contained in this press release that are not historical facts constitute forward-looking statements under the federal securities laws.  Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "post", "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed," "confident" or "continue" or the negative of those terms.  These forward-looking statements are based on the existing beliefs, assumptions, expectations, estimates, projections and understandings of the management of IGC concerning PRC Ironman with respect to future events at the time these statements are made.  These statements are not a guarantee of future developments and are subject to risks, uncertainties and other factors, some of which are beyond IGC's control and are difficult to predict.  Consequently, actual results may differ materially from information contained in the forward-looking statements as a result of future changes or developments in our business, our competitive environment, infrastructure demands, Iron ore availability and governmental, regulatory, political, economic, legal and social conditions in China.

Factors that could cause actual results to differ, relate to the (i) ability of IGC to successfully execute on contracts and business plans, (ii) ability to raise capital and the structure of such capital including the exercise of warrants, (iii) exchange rate changes between the U.S. dollar, the Chinese RMB and the Indian rupee, (iv) weather conditions in China and India, (v) uncertainties with respect to the People's Republic of China's legal, regulatory and licensing environment, and (vi) ability of the Company to access ports on the coasts of India.  Readers are cautioned not to place undue reliance on these forward-looking statements.  The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.  Other factors and risks that could cause or contribute to actual results differing materially from such forward-looking statements have been discussed in greater detail in IGC's Schedule 14A and Form 10-K for FYE 2012 filed with the Securities and Exchange Commission on December 9, 2011 and on July 16, 2012, respectively.

Investor Relations Contact:
Mr. John Selvaraj
301-983-0998