Pickups Plus Finalizes Refinancing Agreement
MASON, Ohio--March 19, 2002--Pickups Plus, Inc. (OTCBB:PUPS), a leading retailer and national franchiser in the $30 billion truck and SUV aftermarket accessories industry, announced today that it has successfully consummated the initial phase of its refinancing efforts.Pickups Plus announced today the completion its refinancing with Pups Investment, LLC. Pups Investment, LLC is a Florida limited liability company, which was formed by private investors to provide funding for Pickups Plus and promote the company's growth. Pups Investment, LLC has agreed to provide the following:
| -- | $500,000 in funding over the next three (3) months for working capital and initial expansion. The company initially received $200,000. |
| -- | The companies existing bank credit line with a balance of $253,507 has been retired. |
| -- | Terminated the companies equity credit line with Cornell Capital Partners, L.P. and agreed to pay off the companies existing note over 12 months, and issue Cornell Partners 50,000 shares of stock. |
| -- | Completed the conversion and/or redemption of all of the company's outstanding convertible debentures. |
| -- | Provide for an option to fund $500,000 in capital for future expansion. |
"We are excited to announce the successful completion of the initial stage of our refinancing with Pups Investment LLC. Management believes that Pickups Plus will now have the financial flexibility to address outstanding issues with our vendor community and to undertake the key business initiatives necessary to sustain our growth in 2002," said John Fitzgerald, Chairman and President of Pickups Plus. "We believe that the operating initiatives we have implemented, as well as the new capital resources resulting from the refinancing, are important steps in strengthening the Company operationally and financially while providing growth funding."
John Fitzgerald also stated, "Pups Investment LLC has provided the necessary capital through equity financing without debt and has shown their faith in Pickups Plus by accepting all restricted stock. By issuing restricted stock in this transaction management believes the benefit to current shareholders is that no marketplace dilution is anticipated for at least two years."
About Pickups Plus
Pickups Plus is a leading national operator and franchiser of retail stores dedicated to the sale and installation of quality aftermarket accessories for pickup trucks and SUV's. Pickups Plus currently operates four corporate retail stores and has another seven franchise stores throughout seven states. After several years of extensive development and testing of its franchise system, the Company intends to start a nationwide expansion in both corporate and franchise stores to become the first national chain in its growing, but highly fragmented industry.
Safe Harbor Statement: Except for historical information contained herein, the statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934 and the Private Securities Litigation Act of 1995. Forward-looking statements involve known risk and uncertainties, which may cause the Company's actual results in the future to differ materially from forecasted results.