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SOURCE APT Group, Inc.
-- Ironridge Global Debt Resolved --
KANSAS CITY, Mo., April 24, 2014 /PRNewswire/ -- APT Group, Inc., a propulsion technology company that manufactures and distributes advanced, environmentally friendly transportation, recreation and utility powersport products (www.powerapt.com), today announced that it has developed and executed a new strategy to meet increasing production demands from both new and current customers.
APT today announced that it has completed an important and complex transaction with Ironridge Global IV. Ltd. that eliminates the lockbox on Company's account receivables, terminates the associated interest costs, and restructures the balance sheet in preparation for continued domestic and international growth. APT today issued an 8-K which details the terms of the transaction.
APT experienced significant growth in sales of motorsport products in 2011 and 2012, nearly doubling revenues from $5.9 million to nearly $11 million. During these early years, APT fulfilled orders by utilizing working capital credit lines from a local financial institution. The exponential growth in sales required the Company to seek alternative sources of financing as the local institution had reached its lending limit. As an emerging, high-growth company, APT partnered with a financing company in 2013. This financing firm, while necessary at the time, required APT to accumulate excessive reserves while directing payments of receivables to the firm as security, making cash flow difficult to manage and interest costs high.
"Having control of cash is critical to capitalize on strategic growth opportunities. APT now has the tools and team in place to effectively and efficiently manage these opportunities and the cash flow necessary to execute our plan," said Troy A. Covey, President. "We are well positioned to accept aggressive product orders from both current and new domestic and international customers. Domestic demand for our products and technology is growing while international demand is explosive. This transaction allows APT to launch new products and commit to international distribution and brand growth opportunities this year and in 2015," said Mr. Covey.
About APT Group, Inc.
APT Group, Inc. (OTC BB: FROZ) is a Missouri registered corporation headquartered in Kansas City and is the holding company for the MotoVox® motorsport product line, SmartCarb® patented fuel system, and the Sonic Flow small engine technology lines (http://www.motovox.com/, and http://www.powerapt.com/).
Some statements made in this press release are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate," "believe," "expect,'' "future," "intend," "plan," and similar expressions to identify forward-looking statements. These statements including those related to the growth of the industry and the Company's performance, are only predictions and are subject to certain risks, uncertainties and assumptions. Additional risks are identified and described in the Company's public filings with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, events, or circumstances after the date of such statement.
William Maher, SVP
APT Group, Inc.
E & E Communications
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