Capstone Companies Inc (CAPC)

[harr449]

CHDT China Direct Receives $575,000 Loan From Senior Management

COOPER CITY, FL, Jun 04, 2007 (MARKET WIRE via COMTEX) -- China Direct Trading Corp. (CHDT) announced today that it has received a loan for $575,000.00 from its Chairman, Howard Ullman. The loan is to be used solely to fund the staffing for the wholly owned subsidiary's, Capstone Industries, Inc., previously announced brand product initiatives. CHDT intends to build upon its current product lines with the addition of its newly acquired STP exclusive brand name
license for automotive and hardware products.

Terms of the loan are for two years, which repayment shall be made in calendar quarterly interest and principal payments. The interest rate is 10.455% per annum. Upon the lenders approval, the company may convert all or a portion of any unpaid principal or interest into "restricted" shares (as defined in Rule 144 of the Securities Act of 1933, as amended) of common stock at a price of 0.02 per share. Any shares of Stock issued in a conversion have piggyback registration rights. CHDT has and will continue to explore alternative means of funding.

CHDT's Strategic Plan: CHDT has been engaged for the past few months in an ongoing process of building the Company's corporate infrastructure to better manage the company's current and future subsidiaries. In 2007 the company started to add additional consumer product lines, which lines require experienced personnel to do product development, marketing, and shipping. CHDT Management recognized the need to build up the infrastructure before taking on additional lines of product or looking at acquisition targets. Such build up consists of adding a few personnel.

"We are assembling an experienced team of consumer product specialists to build the foundation for a planned expansion of Capstone product lines," said Howard Ullman, Chairman of CHDT.
http://www.investorshub.com/boards/read_msg.asp?message_id=20152750