NEW YORK, Jan. 7, 2013 (GLOBE NEWSWIRE) -- RVPlus, Inc. (OTCQB:RVPL), holding company of ECCO2 Tech, provides CEO letter to Shareholders from CEO Mr. Cary Lee Peterson who updates that the Company has made significant progress since change in control of Company in May 2012. The Company's subsidiary, ECCO2 Tech, has expanded business as a supplier and service provider for 'green' projects, partnering with foreign governments and non-governmental organizations (NGO's) within Africa and the West Indies.
The Company's recent quarterly report dated October 31, 2012 shows over $8.6 million and closing the 2012 year with over $14 million in accounts receivable from monthly invoicing for soft costs associated to the recently announced active contracts with the governments of Haiti and Nigeria. My anticipation is to continue generating immediate accounts receivable and sales revenue from commercial invoices for soft costs and commence regularly scheduled shipments of hard goods by end of the first calendar quarter of 2013, as the project framework develops and financial aid parties are comfortable with broadening financing and cash flow for ECCO2 Civil Society Program expenditures.
Revenue streamlines are stipulated by the following key elements, no matter what country or region that we're doing business in. Credit/risk insurance is the primary necessity to secure invoices billed to foreign government parties. There is also an option for bank guarantees for debt financing (if it is decided to pursue an asset based loan to accelerate cash flow for the supply chains supported by ECCO2 Tech and partners). It will take a moment to finalize arrangements with EX-IM Bank (Export-Import Bank of the United States) and MIGA (Multilateral Investment Guarantee Agency, a member of the World Bank Group). I'm certain we will be moving at a more radiant formality once all parties get comfortable with program deployment and operations for each individual government contract that is active. All parties are in talks now and there will be more updates on this subject upon our upcoming conference with all parties taking place the end of January 2013.
Receivable-to-Revenue Methodology Simply Clarified
(1) A contract is executed, an invoice is submitted for payment to government party, In this instance there are multiple invoices for goods and services rendered over a 10-year duration linked to one master agreement.
(2) Credit/risk insurance is obtained to secure risks involved with purchase or service order (inclusive of meeting credit terms extended to the Purchaser and payment to RVPlus),
(3) The insured invoice is factored by a bank (or a private investor party) and within a week funds are paid to RVPlus for goods shipped and services rendered as a cash advance several weeks before the commercial invoice is actually paid by the Purchaser.
Focusing on What We Can Control to Generate Growth
The Company currently holds active contracts with three countries. The outcome from United Nations COP18/CMP8 Climate Change Conference in Qatar has created an alliance with United Nations affiliates (NGOs, IGOs, and Parties), utilizing a turnkey business model for clean development mechanisms to support climate change, energy efficiency, environment, social affairs, and economic development in over 68 countries within Africa, West Indies, Latin America, and Micronesia. The negotiations for these engagements are pending and will require me to conduct a significant amount of conferencing, travel, and planning for delegations and meetings with UN affiliates, financial aid partners, and international government parties.
Middle market financing, robust management, and proficient communication will determine the end result. United Nations financial aid partners hold over $300 billion at the present time for NGO projects in developing countries where we are planning and currently conducting business. The Company's alliances with ECCO2 Corp, Center for Climate Change & Environmental Studies, LINGS, and Cabinet Alescio & Stafford have enabled the framework for expansion of ECCO2 (Environmental Control of Carbon Dioxide) into the majority of the developing regions and communities to bid on a healthy percentage of the eligible financial aid that can support ECCO2 business and philanthropic objectives.
ECCO2 brings together World Politics, Wall Street, Economics, and Finance (Subject matters that sometimes can be rather complicated when held in the same sentence). 2013 will be a great year for the Company. Shareholders must interpret that any project with government, whether it be local, federal, or international, is not going to scale up and execute overnight. A municipal contract to widen the highway or to build a bridge takes a few years from A to Z and that's just dealing with City Hall, State, and possibly Department of Transportation. [For example:] Deploying a program that installs XP-AC medal conditioner in every public vehicle and facility in a country as Nigeria, who has a population of over 162 million people will take several months of project development. This is not as simple as delivering a container load of goods one day, invoicing the client, and then walking away. ECCO2 Tech manages various tasks associated to the installation of products (e.g.; program development and training) that will accrue revenue for RVPlus from service fees, which make up the majority of the soft costs that you see on the company's balance sheet from the most recent quarterly report. These invoices are currently in the process of being insured and will be factored to generate cash revenue for the Company. This is an ongoing process, whether factoring receivables for goods or services.
This will be the sixth year since the 'international green giant' concept went into action. ECCO2 is definitely not the 1-2-3-business model that you're going to understand by reading a paragraph. What should be identified is that the Company's business model for foreign government contracting is sustainable as long as United Nations, Foreign Parties, and the US Government support green technologies and economic development globally. Our products are cost effective (unlike several other green technologies), universal, and quite conventional. Thus, helping the environment, economy, and the people who live on this planet will never go out of business or show a lack in demand unlike various industries that operate as public sectors today.
Cary Lee Peterson
Chairman-CEO, RVPlus, Inc.
(Holding Company of ECCO2 Tech)
For more details or a copy of the company's executive summary contact us by phone or email.
For more details about RVPlus and ECCO2, go to http://www.ecco2tech.com.
The ECCO2 logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14907
Statements which are not historical facts contained in this release are forward-looking statements, such as "immediately accretive" that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," and "seeking" and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements. The information herein is subject to change without notice. The Company shall not be liable for technical or editorial errors or omissions contained herein.