Z Trim Holdings' Insiders Show Confidence, Convert Debt into Equity

MUNDELEIN, IL, April 12, 2011/PRNewswire/ -- Z Trim Holdings, Inc. (OTC Markets: ZTHO � News), manufacturer of multifunctional ingredients used in food production, today announced that the overwhelming majority of the holders of its 8% Convertible Secured Notes Due in 2011 and 2012 have decided to convert their Notes into common stock of Z Trim Holdings in advance of the maturity date of those Notes. Holders of $3,771,500 of these Notes have elected to convert, including all of the external members of Z Trim�s Board of Directors and the Company�s largest investor, Brightline Ventures I, LLC. As a result of these conversions, the Company has issued 4,397,923 shares of its common stock, 3,771,500 shares representing the principal of its 8% Convertible Secured Notes Due in 2011 and 2012, and 626,423 shares representing interest of $626,423 due on the Notes. Additionally, the Company redeemed another $50,000 worth of Notes. As a result of these conversions, holders of over 80% of the approximately $10,000,000 in convertible debt issued in 2008, 2009 and 2010 have elected to convert their Notes into equity in Z Trim Holdings instead of redeeming those Notes. Consequently, the Company has reduced outstanding Note indebtedness to only $87,500 due in 2011, and $1,904,000 due in 2012, thus preserving capital needed to increase the Company�s production capacity to meet the growing market demand and to continue to develop and refine new applications and products.

 

�We appreciate the confidence that our investors have shown in our company, our products and our management team and employees,� stated Steve Cohen, Z Trim Holdings President. �Their continued confidence in Z Trim Holdings and Z Trim, as evidenced by their decisions to convert their Notes into equity, will greatly improve our balance sheet and enable us to enhance our production capabilities and output and grow our sales.�

 

ABOUT Z TRIM�

 

Z Trim Holdinhttps://orporated, http://www.ztrim.com, deploys technology, formulation, and product performance solutions built around cutting edge multifunctional ingredients for both domestic and international food markets. Made from either corn bran or oat hulls, Z Trim� ingredients contribute multifunctional attributes for food product design and processing, including moisture management, texture and appearance quality, fat and calorie reduction, clean labeling, and cost-control. Z Trim� can provide enhanced eating quality, outstanding product performance, and frequently, improved nutritional profiles in meats, sauces, dressings, microwaveable hand-held snacks, baked goods, fillings, toppings, prepared meals, ice cream, cream cheese, dips, and many other food products.

 

Forward-Looking Statements and Risk Factors

 

Certain statements in this press release are "forward−looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of Z Trim Holdings to be materially different from any future results, performance or achievements expressed or implied by these forward−looking statements. Other factors, which could materially affect such forward−looking statements, can be found in our filings with the Securities and Exchange Commission at www.sec.gov, including risk factors relating to our history of operating losses, that our auditors have expressed substantial doubt regarding our ability to continue as a going concern, the fact that we may dilute existing shareholders through additional stock issuances, and our reliance on our intellectual property. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward−looking statements and are cautioned not to place undue reliance on such forward−looking statements. The forward−looking statements made herein are only made as of the date of this press release and we undertake no obligation to publicly update such forward−looking statements to reflect subsequent events or circumstances.

 

Contacts:

 

Media:

Angela Strickland

(847) 549-6002

[email protected]

 

Investors:

Thomas Wagner
Legend Securities, Inc.
718-233-2627

John Columbia
Legend Securities, Inc.
718-233-2677