AQLV - Bettin the Farm?
AquaLiv Releases Update Concerning Upcoming $50 Million Capital Infusion
SEATTLE, WA--(January 19, 2012) - AquaLiv Technologies, Inc. (OTCBB: AQLV) subsidiary, AquaLiv, Inc., has released an update concerning the upcoming $50 million capital infusion.
In early December, the company announced that it had received a Conditional Commitment Letter from an undisclosed investment group offering $50 million in working capital. Today the company released more information about the investment.
According to the company, the undisclosed investment group put them in touch with a major farming operation in South Dakota that will make the investment. The farm will loan $50 million USD to AquaLiv over a twelve month distribution schedule in exchange for ownership in the company. In order to make the investment, the farm must first pool their assets to collateralize their own bank loan.
"We're finally able to discuss more details surrounding the upcoming financing deal," stated AquaLiv CEO, Craig Hoffman. "Our new agriculture partner is collateralizing a loan for us in exchange for ownership and us prioritizing the development of AgSmart™ solutions for corn and wheat. The South Dakota operation manages over 50,000 tillable acres of corn and wheat in addition to many thousands of grazing acres for Angus beef."
"This isn't a simple venture capital deal where the funds are sitting in an account and ready to be dispersed at a moments notice," added Mr. Hoffman. "The farm group has begun pooling its assets in order to begin the loan process with the bank. We expect that once the assets have been pooled and the bank approves the pool to act as collateral, that we will then receive a definitive contract from the group."
Considering the timeline of events required to collateralize the loan and the closing time required by the bank, the company expects to receive the first loan proceeds in April. However, the contracts concerning the funding will be issued sooner.
"We absolutely love this deal that AquaLiv has put together," stated Bill Wright, CEO of AquaLiv Technologies, Inc. "Not only does AquaLiv get all the capital it needs to expand, but it locks in our first major agriculture customer right here in the United States."
The company released its first agriculture product, AgSmart™ Rice, earlier this year, and is close to releasing their potato solution. AgSmart™ products increase crop yields without chemicals or genetic engineering and are organic standards compliant.
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