Platinum Arranges Financing as Next Step Toward Commercialization
TechroBond(R) engine oil additive passes stringent performance tests
DALLAS, Sept. 24, 2008 - Platinum Research Organization (Pink Sheets: PLRO) (http://www.platinumresearch.com/) has reached an agreement on $1.5 million of financing that may be converted into Platinum common stock from a group of long-time investors. They include company executives, EFO Holdings, LP and R. T. Vanderbilt Company, Inc. (RTV), the exclusive worldwide distributor of Platinum's TechroBond(R) grease products.
"The financing is underwritten by people and organizations that are quite knowledgeable about Platinum's progress toward its goal of becoming a revenue- driven company," said John T. (Cork) Jaeger Jr., president and CEO of Platinum. "We are particularly pleased to have this financial commitment from R.T. Vanderbilt, with whom Platinum has a strong working relationship."
An initial $750,000 was funded Sept. 22 and the second phase $750,000 will be available at Platinum's request after meeting other customary conditions.
Platinum also reached an agreement with the Seattle City Employees' Retirement System (SCERS) to release $1,410,000 restricted cash in escrow and to allow Platinum to reduce the principal amount of its note payable to SCERS from $6,000,000 to $4,590,000. Certain participation payments provided for, in this note, have been reduced by a similar amount and will be convertible into common stock of Platinum under certain conditions.
Platinum also announced that an advanced new engine oil containing its low phosphorous additive TechroBond has passed a series of the demanding American Society of Testing and Materials (ASTM) performance tests, most recently the Sequence IVA. The tests are required by the major automakers to assure satisfactory engine life and performance.
The unique new engine oil has passed several ASTM tests, including Sequence IVA, TEOST MHT-4, TEOST 33C, AND ROBO. These strict engine oil standards were established by the major automotive manufacturers, including representatives from General Motors, Ford Motor Company, Daimler/Chrysler and the Japan Automobile Manufacturers Association.
"Passing the engine tests and securing additional financing are major milestones in our program to field a very competitive commercial product," Jaeger said.
R.T. Vanderbilt Company, Inc. (RTV) of Norwalk, Connecticut and Platinum developed the innovative engine oil that contains Platinum's TechroBond(R) and RTV's high-performance MOLYVAN(R) and VANLUBE(R) antioxidants, friction modifiers, and anti-wear additives.
The oil's extremely low level of phosphorous can greatly reduce the contamination of engine emission control systems, extending the life of catalytic converters while protecting against engine wear, oxidation and corrosion.