Rufus, OR, Oct. 04, 2016 (GLOBE NEWSWIRE) -- Auscrete CEO, John Sprovieri recently returned from a second trip to Europe where he has been in final negotiations of a 2-part agreement for funding of their Housing Development in Jamaica and establishment of the Company Headquarters Campus and Building Products Production Facilities in Oregon.
On Monday, the lender forwarded the final agreement and terms to Auscrete which were in line with the discussions held over the last 5 weeks. And are generally as follows.
Stage one is for $10 million of loan funding that will not create any dilution of the stock and is to enable the acquisition of land in Jamaica and Oregon and to finance the construction of the first production plant. Additionally, the company will carry out necessary organization for the Jamaica plant and for land development in preparation for the construction of 1,500 affordable homes.
Stage two in 6 months will be for further funding of a $6 million loan facility, once again non diluting, to prepare the building sites, install utilities and build access roads to the development in preparation for construction.
The company plans to construct the building materials manufacturing plant close by the residential housing property where they will use their proprietary technology to construct 1,500 affordable homes, valued at approximately $135 million, over the next 5-6 years.
The Oregon Campus facility will also have revenues in the order of $15 million P/A by its second year of operations. There are other planned future plants in Texas and elsewhere in the US.
Mr. Sprovieri added that he was pleased to see that all of the company’s convertible notes, issued last December and January had completed conversion, including an additional back end note that was not expected until 2017. He also noted that the company’s stock price increased by some 500% during the conversions and thought that the company’s activities going into the future could possibly lead to further advances due to an increased market cap that might occur.
He said that he was very pleased that all the conversions only increased the float to around 156 million shares of a total of 250 million issued. “We are well below the expected level for a penny stock issuer” he added.
Safe Harbor: Statements in this press release may constitute forward looking statements and are subject to risks and uncertainties. As like all investments, the company’s future capital needs could be affected, the lack of market demand for any new or enhanced projects the company may develop. The actual results may differ materially from those in this press release. The company disclaims any obligation to update any statements contained in this press release.
Auscrete Corporation Investor Relations - Lee Odom /IR Spokesperson 305 853 8404 - firstname.lastname@example.org Corporate Business - John Sprovieri / CEO 541 739 8298 - email@example.com www.auscretehomes.com ###