Quasar Aerospace Industries, Inc. Details the Terms of Its $350 Million Funding
Market Wire "US Press Releases "
JACKSONVILLE, FL -- (MARKET WIRE) -- 11/18/09 --
Quasar Aerospace Industries, Inc.
(PINKSHEETS: QASP) today released additional details regarding the
Company's recently announced primary funding of $350 million.
Mark Lundquist, a Philadelphia based attorney and Senior Vice President for
Strategic Planning for Quasar Aerospace Industries, Inc., stated, "This
primary funding instrument will provide a $350 million cash infusion into
Quasar. Closing documents are being prepared and closing is scheduled for
mid-December."
The funds from the transaction will be transferred to Quasar's account as
lump sum, upon the execution of the final documents. The funding
transaction is structured as a loan, the proceeds of which originate as
part of a $1 billion bond issued by Inver Finance Ltd., an Irish
corporation.
The bonds, which are secured by $1.4 billion of life settlement policies on
individuals over 72 years of age, bear interest at 6.5% with a ten-year
term. Under the terms negotiated, interest does not begin accruing until
the end of the third year. Additionally, no principal payments become due
until the end of the tenth year. Upon maturity of the loan Quasar has three
options for repayment: (1) an issuance of the Company's common stock equal
to approximately 9% of the common stock outstanding as payment in full of
the principal, (2) extend the loan for two successive five years terms, or
(3) pay off the principal and any accrued and unpaid interest.
Dean Bradley, CEO of Quasar Aerospace Industries, Inc., commented, "The
company continues to make significant strides in the progressive growth of
operations. Inver Finance has provided our Company with a very flexible
financial instrument that I believe will provide major long-term benefits
for the Company's continued growth and success."
This press release contains "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended and such forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. You are cautioned that such
statements are subject to a multitude of risks and uncertainties that could
cause future circumstances, events, or results to differ materially from
those projected in the forward-looking statements as a result of various
factors, and other risks. You should consider these factors in evaluating
the forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this release
are made as of the date hereof and Equus Resources, Inc. and Quasar
Aerospace Industries, Inc. undertake no obligation to update such
statements.
Contacts:
Investor Relations
QASP-info@equititrend.com
800-585-6988
