HOUSTON, TX / ACCESSWIRE / June 19, 2017 / Environmental Packaging Technologies ("EPT") (OTC PINK: EPTI) announces that it has closed on a series of financings totaling $7.67 million of new capital, consisting of $2.9 million of equity in the form of "straight" common stock, conversion of $760,000 of convertible notes into common stock and $4 million drawn down from its new line of credit.
In April 2017, EPT closed on a $7.5 million line of credit provided jointly by a prominent finance group specializing in export-import financing and a US government lending organization. Currently, EPT has drawn approximately $4 million on its line of credit based on its borrowing availability. EPT plans to draw down on the balance of this line to support its continued growth and working capital needs. Concurrently, EPT also converted $14 million of subordinated debt into common stock at $1.40 per share.
"This new equity investment of $2.9 million, the conversion of $760,000 of debt to equity, the $7.5 million line of credit, and the conversion of $14 million in subordinated debt to equity provides EPT with the strongest balance sheet in the company's history and the capital needed to grow its business," stated David Skriloff, CEO.
Environmental Packaging Technologies (EPT) (www.eptpac.com) is a publicly traded USA based global logistics company (OTC PINK: EPTI). EPT is a pioneer in the field of flexitank manufacturing, and it is the only company manufacturing its products in the United States. EPT's flexitank is a soft sided single use container enabling bulk shipment of non-hazardous liquids. Flexitanks are considered to be the least expensive and most environmentally friendly way to ship bulk non-hazardous liquids over long distances. One flexitank can hold up to 24,000 liters of liquids.
With the introduction of its patent-pending LiquiRideTM product, EPT opened the market for flexitanks to be utilized in 40' and 53' containers and trailers in both dry and refrigerated configurations allowing for the first time shipments of liquid requiring temperature controls.
EPT's flexitanks are used to ship a wide variety of liquids including latex and other chemicals, edible oils, wine, petroleum based products and many others. EPT provides flexitanks to shipping companies, logistics companies, manufacturer suppliers and consumer product manufacturers in more than 50 countries around the world. It has offices in the US, South Korea, the Netherlands and Argentina.
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This press release contains projections and other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) the contraction or lack of growth of markets in which we compete and in which our products are sold (ii) unexpected increases in our expenses, including manufacturing expenses, (iii) our inability to adjust spending quickly enough to offset any unexpected revenue shortfall, (iv) delays or cancellations in spending by our customers, (v) unexpected average selling price reductions, (vi) the significant fluctuation to which our quarterly revenue and operating results are subject due to cyclicality in the transport/ logistics industry, (vii) our inability to anticipate the future market demands and future needs of our customers, and (viii) other factors detailed in documents we file from time to time with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
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SOURCE: Environmental Packaging Technologies Holdings, Inc.