As part of its $75M Investment strategy, 8000inc has drawn down $10M USD in its planned strategy for developing the 8000inc flagship site in Barbados and Brand8000.
MANASSASS, VA, Feb. 23 /CNW/ - The Investment Network of 8000inc has agreed to utilize their existing positions in the company to raise $10M for the company's aggressive development and branding strategy in Barbados. This stock will be held in a brokerage escrow account and used as collateral to draw down $10MUSD. At any point, 8000inc can repay the capital raised and the stock will be returned to the 8000inc Investor Network. There is no margin call or interest bearing on the funding nor sale of the stock granted for the transaction. However the terms allow increased draw down of capital for corporate acquisitions, project development and expansion in line with any increase in share equity.
Thomas Kelly, CEO 8000inc, stated, "The project in Barbados, launched this month is growing at such a pace it is already generating revenues during the pre-marketing phase. The demand for the exclusive sportswear for the Amateur Athletics Association of Barbados has been unprecedented with the first 400 units already in production prior to the public launch. It is imperative that we keep pace with the expansion through investment." However, added Mr. Kelly, "The most significant aspect of this announcement is that the finance process developed by the 8000inc Investment Team means that although stock is issued to secure funding, this is an in-house transaction. Thus there is no dilution of the company stock, no change in share holder equity and is available so long as the company requires, now and in the future. Simply there is no change to the capital structure of 8000inc as the stock is never sold or released into the market. Simply the company's assets are maximised to secure permanent expansion funding without new share creation. The issued and outstanding does not change and the stock utilised is held by the investment team creating a permanent financing vehicle. There is a recorded increase in the float, but this is not a true reflection of the position as there is no dilution due to no stock sales. To reassure the shareholders there will be no increase in the number of shares authorised, we are singularly, we the 8000inc team, are using the power and the value of our existing issued shares to ensure continued success. I am truly proud of the financing process we have developed creating a truly sustainable growth and expansion of Brand8000."
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. The words "estimate," "project," "intends," "expects," "believes," and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbour" provisions of the Private Securities Litigation Reform Act of 1995. For a more complete description of these and other risk factors that may affect the future performance of 8000 Inc. see "Risk Factors" in the Company's Annual Report on Form 10-KSB and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
SOURCE 8000 INC.
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