Chardan Capital Markets Announces $3.5 Million Financing for Converted Organics

BOSTON, Apr. 1, 2011 (GLOBE NEWSWIRE) -- Converted Organics Inc. (Nasdaq:COIN) announced today that it has signed a definitive agreement for a financing transaction with an institutional investor wherein it has agreed to sell convertible notes and warrants, the sale of which provides the Company with an immediate $3.5 million in cash before expenses. The company intends to use the proceeds of the offering towards further development of the company's business lines, to pursue acquisitions of other sustainable or green opportunities, for general corporate purposes, and to add to working capital.

Under the terms of the transaction, the Company agreed to sell to the investor convertible notes in the aggregate original principal amount of $3,850,000., with an original issue discount of $350,000. The Company is required to repay the notes in six equal monthly installments either in cash or in shares of common stock, at the Company's election, commencing July 31, 2011. The notes are convertible into shares of common stock at an initial conversion price of $0.40 per share.

For complete details on the transaction, including the details of the note and the warrants please see the form 8-K filed April 1, 2011.

Chardan Capital Markets, LLC acted as he sole placement agent for this transaction.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About Converted Organics

Converted Organics' (Nasdaq:COIN - News) mission is to promote, develop and operate profitable, innovative, clean technologies that contribute to the improvement of our environment by use of sustainable business practices and the judicious use of natural resources. Converted Organics Inc. is currently composed of three primary lines of business at the intersection of Agriculture, Water and Waste Recycling. Each business contributes to our mission and uses sustainable business practices that protect and value the environment. The three lines of business are Organic Fertilizer (Converted Organics), Vertical Farming (TerraSphere Systems - www.terraspheresystems.com), and Industrial Wastewater Treatment (Industrial Wastewater Resources).

Chardan Capital Markets, LLC

Chardan is an international investment bank headquartered in New York City, with offices in Los Angeles, San Francisco, Beijing and Sydney. Chardan provides a wide array of banking and advisory services to public and private companies and institutional investors around the world including Initial Public Offerings (IPOs), Private Investments in Public Equity (PIPEs), Specified Purpose Acquisition Companies (SPACs), Merger and Acquisition Advisory Services, Debt Financing, Private Equity Financing, Venture Capital Financing, Equity/Derivatives Trading, Non Deal Road Shows, Third Party Marketing of Hedge Funds, Research and Restructuring.