EcoTyre Files Non-Recourse International Receivable Financing
23 June 1998
EcoTyre Files Non-Recourse International Receivable Financing
HOLTSVILLE, N.Y.--June 23, 1998--Today CEO Vito Alongi announced that "The Company filed an application with The Globus Group of Miami, Florida to provide non-recourse international receivable financing up to $10MM per month under certain terms and conditions which would allow EcoTyre to accelerate it's expansion plans into foreign markets where payments terms have traditionally been extended and disrupted positive a cash flow. This new resource will allow EcoTyre to enjoy a positive cash flow on foreign sales and will yield payment of up to 90% of the invoiced amount. The Company expects to receive 70% of the financed amount upon approval with the balance of 20% paid within 30 days on foreign sales where markets have been receptive but where collection has previously prohibited expansion. According to Globus "Over 75% of their applications are approved for financing". This new development will allow EcoTyre to aggressively pursue foreign markets without assuming the associated collections risks.At it's Holtsville, New York facility, EcoTyre Technologies utilizes European remolding technology to manufacture and distribute a comprehensive line of premium, high-grade, high mileage, recycled auto and truck tires. Differing from the traditional "top-cap" retreading process in which new tread is simply placed over the tread portion of a used casing, EcoTyre applies new sidewalls and tread rubber to a completely buffed casing and permanently bonds the rubber to the casing from sidewall to sidewall with a high-temperature vulcanizing process that yields tires which look and perform like new, but sell for 30%-50% less than new tires. With the growing emphasis on the environment and global warning, the EcoTyre process not only saves money for the consumer, but saves almost 22 gallon of oil required to manufacture every new tire. With over 1 Billion new tires consumed in the U.S. alone every year, EcoTyre, the third largest tire recycler in the U.S. is making a substantial impact on the environmental battle lines.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995. The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, regulatory approval processes, the impact of competitive products or pricing, unpredictability of patent protection, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
Hereby Authorized for immediate release and publication by Vito Alongi, President, EcoTyre Technologies Inc.