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Power Sports Factory, Inc. Secures Line of Credit
Thursday January 22, 2009, 11:52 am EST
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PENNSAUKEN, N.J.--(BUSINESS WIRE)--Power Sports Factory, Inc., (OTCBB:PSPF - News) has secured a $1,000,000 line of credit from Crossroads Debt LLC.

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PSPF.OB 0.20 -0.02


{"s" : "pspf.ob","k" : "c10,l10,p20,t10","o" : "","j" : ""} On January 9, 2009, the Company entered into a revolving credit loan (the “Credit Facility”) with Crossroads Debt LLC, a private investment company (the “Lender”). The loan is for a term of one year which is renewable under certain conditions and in the amount of $1,000,000. Terms under the agreement include and origination fee of one and one-half percent, interest of one and three-quarters percent per month, a collateral management fee of one-half percent a month, an advance rate of fifty percent of cost, which includes supplier invoice, freight and customs, with a maturity on advances of one hundred and twenty days, audit fees, a minimum outstanding balance requirement of three hundred and fifty thousand dollars and an early termination fee of seven thousand five hundred dollars per month for every month still outstanding in the term. The Lender has a first security interest in all accounts, chattel paper, goods (including inventory and equipment), instruments, investment property, documents, and general intangibles, letter of credit rights, commercial tort claims, deposit accounts, and the proceeds thereof. Further details of the facility can be found in the Company’s Current Report on Form 8-K filed at www.sec.gov.

“We are very pleased to have entered into this relationship with a supportive industry partner like Crossroads, especially in the current economic environment.” Shawn Landgraf, CEO, stated.

About Power Sports Factory, Inc.:

New Jersey based Power Sports Factory, Inc., (OTCBB:PSPF - News) imports, markets and distributes motorbikes principally under the “Andretti” and “Yamati” brands. Additional information is available on the Power Sports Factory website at http://www.powersportsfactory.com and www.sec.gov

Power Sports Factory is the only company with motorbikes endorsed by racing legend Mario Andretti. The Andretti line combines top performance, competitive pricing and cutting-edge European design from Benelli. Benelli is the designer of some of the best motorcycles and motorbikes in the world. The Andretti/Benelli line is also known for its high-quality construction, superior styling and superb gas mileage making it the smart value choice for consumers.

Forward Looking Statements

The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Factors that may cause actual results to differ materially from those expressed or implied by its forward-looking statements include, but are not limited to, Power Sports Factory's limited operating history and business development associated with being a growth stage company; its dependence on key personnel; its ability to execute its business strategy; the intense competition it faces; risk associated with disruptions of its international supply chain; its exposure to product liability claims resulting from the use of its products; general economic and capital market conditions; its ability to raise additional capital; as well as those risks described under the heading "Risk Factors" of Power Sports Factory's Form 10-KSB/A, filed with the Securities and Exchange Commission on August 18, 2008. Although Power Sports Factory, Inc. believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.


Contact:
Power Sports Factory, Inc.
Shawn Landgraf, CEO, 856-488-9333
[e-mail]