COMPANY RELEASE- HEY MR. PINK, YOUR AMMUNITION IS RUNNING OUT! J.C. is on target again however
Tuesday January 6, 3:03 pm Eastern Time
Company Press Release
SOURCE: ACTRADE INTERNATIONAL, LTD
ACTRADE Secures New Line of Credit TADs Self-collateralized
NEW YORK, Jan. 6 /PRNewswire/ -- ACTRADE INTERNATIONAL, LTD's (Nasdaq-NNM: ACRT - news) subsidiary, Actrade Capital, Inc., announced today the establishment of a new credit facility with Commercial Finance Institution, Ltd., a British Virgin Island Company specializing in the financing of international commercial paper. The new credit facility will be primarily used for the purchase of Trade Acceptance Drafts (TAD) from companies based overseas.
Management believes that this new availability of capital from Commercial Finance Institution, Ltd. has the potential to eliminate the need to raise additional equity capital for the purchase of TADs which should help to minimize future dilution to shareholders, ''As shown in our recent $5.2 Mil transaction, TADs stand alone as their own collateral,'' said Alexander C. Stonkus, COO & CFO. ''Its almost like having the ability to obtain instant cash for any one holding TADs. This does not mean that we will not entertain raising additional equity capital in response to future developments. Our primary goal is to increase shareholder value, so we keep all our options open.''
ACTRADE INTERNATIONAL, LTD. is the Parent Company with two operating divisions:
ACTRADE CAPITAL, INC. is the financial services division engaged in the discount purchase of commercial Trade Acceptance Drafts through its proprietary Trade Acceptance Draft (TAD) Program. Specifically targeted for the domestic market, the TAD program is a new, innovative financial tool which allows suppliers (Sellers) of products and services to sell to other businesses (Buyers), on special terms including up to five monthly installments, and then have Actrade Capital purchase and process these payments. The TAD Program can be used in addition to current, existing credit lines. It requires no liens or UCC filings and decreases the hassle and paperwork involved with collecting accounts receivable.
ACTRADE INTERNATIONAL CORP is the international trade and export division.
Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties which are described in the company's SEC reports, including the 10-K for the period ended June 30, 1997, and subsequent 10-Q for the period ending September 30, 1997.
SOURCE: ACTRADE INTERNATIONAL, LTD
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