Ludlow Capital Issues Alert on Coverted Organics (COIN)

(NEW YORK)--Oct. 19, 2010--Ludlow Capital, and equity research firm based in new York's Financial District, issued a traders alert for Converted Organics, Inc. (NASD:COIN), with a near-term target of $1.00+.

Coverted Organics announced today that it has eliminated $43.6 million of outstanding debt, liabilities, and future obligations through a restructing with Oppenheimer Rochester National Municipals and Oppenheimer New Jersey Municipal Fund. This move now makes COIN debt free and should add $9 million in cash for the company in 2011, and $600,000 immediately to their balance sheet.

This restructing now clears the way for the closing of the acquisition of TerraSphere Systems, LLC, a vertical crop grow system, and further development of other industrial wastewater business and growth of their profitable organic fertilizer business in California.

Now debt free, the company can focus on developing their TerraSphere acquisition, and benefit from their profitable organic fertilizer operations in California. Based on recent activity in companies who may benefit from the upcoming Prop 19, which would make growing marijuana for personal home grown use legal, and the elimination of all their debt, we anticipate the common shares could make a run for and above the $1.00 mark in the near-term. Until more details of further acquisitions, and upcoming earnings and guidance, we are withholding any specific price target at this time. But, based on these facts, COIN could now be looked at in a brand new light.

COINW are warrants that trade against the common shares. They expire on Oct. 14, 2014, are non-callable, and have a strike price of $1.30 per share. These warrants are currently trading at around $0.11 per share, with volume of around 130,000.