June 1, 1998
THERMAL CONTROL TECHNOLOGIES CORP. ("TCT-Y;TCTCF-L")
- Receives Preliminary Approval for Industrial Development Bond - Financing
Thermal Control Technologies Corp. received preliminary approval from the Industrial Development Authority, County of Yavapai, Arizona (the Yavapai IDA) on May 27, 1998, to the proposed issuance of a combination of taxable and tax-exempt revenue bonds, called Industrial Development Revenue Bonds or IDBs Bonds, up to a maximum amount of US$ 8,000,000. This approval marks TCT's completion of the first step in the approval process for the proposed IDBs.
The IDBs, which will be issued by the Yavapai IDA and secured by certain debt service payments to be made by TCT, typically have 20 - 30 year terms, bear interest, and provide an eligible investor relief from Arizona income tax and, subject to certain conditions, U.S. Federal income tax, in respect of the interest earned on the IDBs.
The terms of the Yavapai IDA's inducement resolution, which details its preliminary approval, provide that the proceeds of the IDBs are to be applied to the costs incurred by TCT in the construction of its new corporate office and manufacturing facility at the Prescott Airpark in
Prescott, Arizona. Footings for the new plant were started on May 1, 1998 and by May 15th, all footings were in place, and all underslab plumbing and electrical work was completed. The main floor slab was poured on May 16th and exterior masonry of the office portion of the facility was started May 18th, with completion scheduled for June 1st. Substantial completion of the structure is anticipated for the 31st of July, after which time, installation and assembly of manufacturing equipment will commence.
In mid-December, 1997, TCT completed an Alberta public offering of CDN$7,000,000 in principal amount of 8 percent convertible unsecured subordinated debentures, from which CDN$4,000,000 (US$2,800,000) was allotted for a proposed land purchase, plant construction and equipment acquisitions. Blaine Maller, President and CEO of TCT explained that the scope of our business plan has expanded. Our goal is to be able to design, test, manufacture and assemble the majority of our product line in-house. As a result, additional financing will be required to achieve TCT's ambitious development plans.
TCT is a manufacturer of advanced heat exchange equipment for sale and distribution into the automotive, heavy duty truck and industrial equipment, agricultural and marine engine aftermarkets. TCT's major product is a line of revolutionary charge air coolers for aftermarket installation on Class 8 heavy duty trucks and on buses.
TEL: (403) 543-1300 Blaine Maller, President & CEO FAX: (403) 543-1313 Thermal Control Technologies Corp. TEL: 1-800-230-6061 Internet: tct.ca |
