FOR IMMEDIATE RELEASE For More Information, Contact:
July 6, 2000 Harmon Hardy, CEO and President
972/233-6041
Jim Drewitz, Investor Relations
972/355-6070
STELAX INDUSTRIES, LTD. ANNOUNCES
$5.75 MILLION IN FINANCING FROM BANK OF AMERICA
Money To Be Used To Increase Production and Deliveries, Help Establish A Micro-Mill in U.S.
Dallas, Texas, July 6, 2000 – STELAX Industries, Ltd. (OTCBB and Nouve Marche Symbol: "STAX") announces it has entered into a loan agreement with Bank of America, New York City, N.Y. to provide the Company with a $5.75 million secured loan. The financing consists of a $5 million long-term loan, a $500,000 line of credit on receivables plus a $250,000 line of credit on inventory. Bank of America is number one in U.S. corporate banking relationships and lending volume. The funding will be used for raw materials payables, operating capital and plant expansion into the United States.
Harmon Hardy, President and CEO of STELAX Industries, Ltd., said, "To date, this is the most significant step in the growth of Stelax. The commitment by Bank of America, one of the largest and most prestigious banks in America, is a real endorsement of the future of Stelax. This financing will allow us to increase the number of shifts we are currently working from one to three which will allow us to increase production and deliveries to meet the ever-growing demand for NUOVINOX. This financing will also allow us to begin the process of establishing one or more micro-mill production facilities in the United States. The credit line for receivables and inventory is especially important for the Company because the line can increase as the Company continues to grow. The financing is very advantageous to shareholders since there is no dilution of shares while the Company’s shares are trading at a low value."
Mr. Hardy continued, "I am extremely pleased NUOVINOX continues to gain acceptance as the standard for long-life, non-corrosive rebar in concrete construction. I look forward to an exciting future as the Company gains momentum towards profitability and increasing shareholder value."
Headquartered in Dallas, Texas, STELAX Industries' main activity is a specialized steel mill located in South Wales (United Kingdom). In addition to production of specialized steel products, it manufactures and markets a patented stainless steel alternative known as NUOVINOX.
For More Company Information, Please Visit The Company’s Web Site: www.stelax.com
The information provided in this Press Release contains forward-looking statements that involve risks and uncertainties. Statements made in this Press Release that are not historical facts are forward looking statements that are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995.
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