GOOD NEWS, but where are the earnings?
biz.yahoo.com
Friday April 3, 7:58 am Eastern Time
Company Press Release
Krantor Obtains $1 Million Secured Debt for Its
Dominican Republic Cigar Factory
Facility Allows Krantor to Generate up to $7 million in Cigar Sales
WEXFORD, Pa.--(BUSINESS WIRE)--April 3, 1998-- Krantor Corp. (NASDAQ:KRAN - news) announced today that the company has closed a $1 million secured debt facility for its Dominican Republic cigar factory, which is guaranteed by Krantor.
The deal provides the factory a $1 million line of credit, which allows the factory to borrow up to 75% of the value of the cigar inventory on a revolving basis. The debt facility, provided by an international commercial finance company at a competitive commercial rate, allows Krantor to finance the purchase of cigars, and provides the necessary capital to generate up to $7 million in cigar sales. This is the first debt facility Krantor has arranged since the company's restructuring began in June 1996.
Mair Faibish, the company's chief financial officer, said the company would arrange additional secured debt financing of this type in order to substantially grow its business to 1995 sales levels of $45 million without floating additional equity for expansion. The company is now negotiating for a similar facility for its grocery and health and beauty aids businesses.
Krantor Corp. is engaged in the distribution of brand name premium handmade Dominican cigars, brand name grocery and health and beauty aids products, frozen squid, and pre-paid phone cards to major wholesalers and retailers in the U.S. and the Carribean. Krantor can be reached on the Worldwide Web at www.krantor.com.
Contact:
Martin E. Janis & Co., Chicago
Hal Schweig, 312/943-1100 |
