NEWS - Quasar Aerospace Update on Funding
JACKSONVILLE, FL, Jul 01, 2010 (MARKETWIRE via COMTEX) -- The CEO of Quasar
Aerospace Industries, Inc. (PINKSHEETS: QASP), Dean Bradley, regrettably
announces that Newby and Associates has confirmed a delay in the funding being
provided to Quasar Aerospace Industries, Inc. Mr. Newby has informed the company
that although the company had met its contractual obligations and provided the
$725,000 dollars required by Newby & Associates for funding, additional fees
will be needed to complete the transaction.
Mr. Newby has informed the Company that The Assets Backing the SBLC presented to
the bank for the cash funds of the Loan had been rejected due to insufficient
funds backing the SBLC. This bank is requiring that any SBLC that is to be
pledged as collateral must be 100% cash backed and not a combination of cash
equivalent Assets. Newby and Associates have worked expediently and have moved
the SBLC to another large worldwide recognized Banking institution with which
Mr. Newby's associates have a long term relationship. This Banking institution
has given preliminary approval to use the assets to secure a line of credit that
will be used to complete the $110,000,000 in funding for Quasar Aerospace
Industries, Inc. This delay has caused the accumulation of additional fees in
the approximate amount of $1,775,000. The company and Newby & Associates are in
the final stages of raising said fees.
Newby & Associates has given a new time line to serve as a retraction to the
Friday, June 24, 2010 press release. The new time line is that Newby &
Associates will be able to provide cash into Quasar Aerospace Industries, Inc.
Attorneys escrow account within 10 Banking days of receiving the $1,775,000 in
fees that need to be paid to the owners of the assets backing the SBLC, as well
as the issuer of the SBLC. There were a total of over $5 million in fees
associated with the original Loan, however, in the initial structure the
majority of the fees would have been paid upon closing. This delay and changing
of the Banking institution being used to provide funding has required more of
those fees to be paid up front.
Mr. Bradley, as well as Newby & Associates, are committed to finishing this
Funding as rapidly as possible and will continue to provide timely updates on
the progress.
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
Quasar Aerospace Industries, Inc. undertakes no obligation to update such
statements.
Contact:
Quasar Aerospace Industries, Inc.
IR@quasaraerospace.net
SOURCE: Quasar Aerospace Industries, Inc.
CONTACT: mailto:IR@quasaraerospace.net
