Goldman Sachs Converts Senior Secured Position into Equity

MILTON, GA , Sept. 04, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE - Attis Industries Inc. (NASDAQ: ATIS) (the “Company” or “Attis”), a diversified innovation and technology holding company, today announced it has closed on a new series of Senior Secured Convertible Notes (the “Notes”) with four institutional investors totaling $5,439,000.

The proceeds from the new Notes have been used to eliminate $8.8 million of senior secured credit principal while increasing stockholder’s equity by an estimated $3 million. This structure has allowed the Company to build on the improved balance sheet reported in their most recent 10Q filing, as well as enhance the restructuring of the Preferred Stock announced earlier this month. In this transaction, Goldman Sachs has released any and all liens to the Company and has transitioned $2.5 million into common equity of Attis Industries Inc. The Notes have a maturity of 12 months and are structured to give the Company the option to make cash amortization payments to prevent any dilution.

Jeff Cosman, Chief Executive Officer of Attis Industries, commented, “We are very pleased to announce the reduction in principal debt and improvements to shareholder equity. The optionality around our convertible notes allows the company to focus on generating immediate cash flows, eliminate restrictive covenants from our previous lender and reduce our overall debt. The Company believes these actions and strategy will have an immediate and positive impact to our stock price. Our Attis Healthcare division is gaining momentum creating valuable infrastructure and services in rural areas, while focused on reducing costs at the employer healthcare expense level. Our Attis Innovations division continues to add to its advanced pulping, lignin and ethanol conversion technology portfolio and commercialization activities.” Cosman continued, “This financing greatly improves the Company’s ability to execute. Since April, we have completed two major financial restructurings to improve our financial strength. With this financing and the amended terms of a previous equity financing, the Company established a minimum floor share price of $0.50 or higher depending on market price of stock. The Company continues to improve its financial strength. This balance sheet restructure will now open up the Company’s ability to execute on its operational plan, previously held back by our debt and credit facility.”

Attis Industries expects to hold a shareholder update conference call by the end of September and will provide the exact date and call information within the next two weeks.

Attis Industries Inc. Attis Industries Inc. (NASDAQ: ATIS ) is a holding company defined by our commitment to servicing our customers with unwavering respect, fairness and care. We are focused on finding and implementing solutions for the resource needs and challenges of our customers with a fundamental objective to seek rewarding solutions through technology and innovation. Our healthcare business centers on creating community-based synergies through collaborations and software solutions. Our innovation business strives to create value from recovered resources. For more information, visit: www.attisind.com

Forward-Looking StatementsAny statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “should,” “would” or similar words. You should consider these statements carefully because they discuss our plans, targets, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. These statements are subject to certain risks, uncertainties, and assumptions, including, but not limited to, risks and uncertainties relating to the Company's ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company's products and technology; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and, the Company's business, research, product development, regulatory approval, marketing and distribution plans and strategies; the ability of the Company to continue to meet the listing requirements of NASDAQ; the ability of the Company to execute on a business plan that permits the technologies and innovations businesses to provide sufficient growth, revenue, liquidity and cash flows for sustaining the Company’s go-forward business and meeting any of its obligations under its indebtedness for borrowed money, and the risks identified and discussed under the caption “Risk Factors” in the Attis Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (the “SEC”) on April 16, 2018 and the other documents Attis files with the SEC from time to time. There will be events in the future, however, that Attis is not able to predict accurately or control. Attis’s actual results may differ materially from the expectations that Attis describes in its forward-looking statements. Factors or events that could cause Attis’s actual results to materially differ may emerge from time to time, and it is not possible for Attis to accurately predict all of them. Any forward-looking statement made by Attis in this press release speaks only as of the date on which Attis makes it. Attis undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Media and Investors Contact: Hayden IR (917) 658-7878 hart@haydenir.com