Item 8.01. Other Events.

On October 22, 2009, HQ Sustainable Maritime Industries, Inc. (the "Company") issued 866,728 shares of its common stock, $0.001 par value (the "Common Stock"), to The Tail Wind Fund Ltd. ("Tail Wind") upon the conversion of $4,250,000 in principal amount of the Company's 6.5% Convertible Notes due November 1, 2009 (the "Notes"). In addition, the Company issued to Solomon Strategic Holdings, Inc. ("Solomon") 50,668 and 101,733 shares of Common Stock on September 15, 2009 and October 12, 2009, respectively, upon the conversion of an aggregate of $750,000 in principal amount of the Notes. These issuances include shares of Common Stock issued to cover interest payments on the Notes through the dates of conversion. There are no Notes outstanding after these conversions. All of these shares of Common Stock have been registered with the Securities and Exchange Commission under the Securities Act of 1933. Therefore, Tail Wind and Solomon may sell these shares of Common Stock in the open market from time to time.

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