Ultra Shield Accepts WorkingCapital Funding|
September 3, 1998 04:55 PM
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Sept. 3, 1998--Ultra Shield Products International Inc. USPDU Thursday accepted the first of three tranches in a working capital funding package.
The transaction provided a secured, convertible-promissory-note issuance to a prominent group of small-cap investors in New York and Florida. The note also provides an option for up to an additional $1 million in funding.
The working capital funding allows Ultra Shield to meet the ever-increasing demand for unique, environmentally preferred specialty chemicals and state-of-the-art blend centers for the world's largest franchised fast-food restaurants.
"The sales department continues to out sell our collected receivables. A decision needed to be made to either ask the sales department to lay down and let the receivables catch up, or we needed to find new money to keep pace with our growth that realized an increase of over 800 percent in 1997," stated Jay Rutherford, Ultra Shield's president and chief executive officer.
"We are in the process of delivering our 10-Qs to the SEC, reporting yet two more record-breaking quarters. This funding sets the financial foundation necessary to meet our customers' strong demand.
"Ultra Shield is preparing to launch a substantial, national investor- and public-relations campaign with one of the country's most recognized firms, to be disclosed once the S-8 clears the SEC," Rutherford further stated.
"We have proved credibility over the last 6 quarters, now we need that all important visibility to the financial community in order to increase the value of our stock and provide liquidity for our shareholders."
Brent Humphrey, Ultra Shield's vice president, commented: "The South Coast Air Quality Management District- and the Environmental Protection Agency-mandated laws are currently working in our favor, and Ultra Shield is keeping the reward of its long struggle to convince the industries we serve that environmentally preferred products will outperform the competition's hazardous-based products on three fronts: performance, savings and safety.
"The quality of our products is made very clear by the quality of our customers," he concluded.
Ultra Shield recently introduced a new "parts washer" and a solvent/mineral spirits replacement chemical to automotive-repair shops, metal fabricators, aerospace manufacturers, and other industrial/commercial operations that must all switch to water-based cleaners by Jan. 1, 1999, according to Rule 1171, or face serious consequences.
Ultra Shield was the first company in California to obtain the South Coast Air Quality Management District's "Clean Air Solvent Certificate." The switch to water-based cleaners in the AQMD's jurisdiction will eliminate 20 tons per day of smog-forming volatile organic compounds (VOCs).
The parts washer and solvent replacement products were tested under extreme conditions and fared perfectly. Another example of Ultra Shield's cross-linked-carbon-molecule technology at work for the environment and the company's customers.