KNOXVILLE, Tenn., Oct. 16, 2006 (PRIMEZONE) -- Green Dolphin Systems Corp. (Pink Sheets:GDPS), a Delaware Corporation, announces that in January 2006 management concluded that having exhausted its ability to raise the capital required to make a success of its chemical product manufacturing and distribution business, the stockholders would be well-served by changing the company's business. Accordingly, in January 2006 Green Dolphin entered into a preliminary letter of intent contemplating a reverse acquisition of 100% of the outstanding common shares of Wales Holding Corp., a prospective mining venture. In order to meet the requirements set by Wales for completion of the reorganization, the management has cleared its corporate debts by spinning out the chemical business; effected a one (1) for twelve (12) share reverse split of its 30,173,700 common shares, thus reducing to approximately 2,514,475 the total number of common shares outstanding; obtained an audit of its financial statements at December 31, 2005; and had its statements for the quarters ended March 31 and June 30, 2006, reviewed by a duly qualified auditing firm. The Company's trading symbol was recently changed to "GDPS" to reflect the reverse split of its common shares.
Within the last two weeks the parties to the potential Wales acquisition have decided to abandon the project and Green Dolphin management began seeking another reorganization candidate. On October 12, 2006, the management entered into a Letter of Intent to acquire all of the issued outstanding securities of Leone Resources Ltd., a Canadian corporation that is engaged in the exploration and development of gold properties, mining acquisitions and joint-venture opportunities. Pursuant to the agreement, Green Dolphin Systems Corp. will issue unregistered securities of the company.
The company will release additional information regarding the potential merger over the next few weeks.
Safe Harbor
Statements made in this press release regarding the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to compete effectively in a rapidly evolving and price competitive marketplace; uncertainties of completing business transactions; uncertainties of raising necessary capital; no control over long term pricing; possible reductions in demand for our products and services due to competition or changes in industry conditions or political environment; changes in the nature of regulation in the United States and other countries; political risk; currency exchange risk; changes in business strategy; the successful integration of newly-acquired business; the impact of technological change; reliance on management and management contracts; and other risks that may be referenced from time to time in the Company's filings with the Securities and Exchange Commission