Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : ACRT about to move to new highs -- Ignore unavailable to you. Want to Upgrade?

To: Z man who wrote (6965)	3/13/1999 6:47:00 PM
From: slowfe	Respond to of 7054

$25 Million Facility From ING Barings NEW YORK, March 11 /PRNewswire/ -- Actrade International, Ltd. (Nasdaq: ACRT - news) today announced that it has secured a five-year, $25 million revolving credit facility with ING Barings, the global corporate and investment banking organization, which will allow Actrade to expand its Trade Acceptance Draft (TAD) Program by potentially providing up to $100 million a year of additional TAD purchasing capacity. The financing provided by ING Barings will be without recourse and off balance sheet to Actrade. Actrade is standardizing TADs as the third method of payment -- the first two being ''cash on deposit'' and ''open account''-- in business-to-business transactions. Designed, administered and patented by Actrade, a TAD is a post-dated payment draft given by a buyer of goods or services to its supplier. When the commercial transaction is complete, the receivable is in essence converted into a financial instrument (the TAD), which is purchased by Actrade. The advantage to the seller is immediate payment (within 48 hours) and the elimination of credit risk. The buyer obtains extended, and generally, unsecured credit terms. In discussing the impact of the new financing, Actrade International Chief Operating Officer and Chief Financial Officer Alexander C. Stonkus said, ''Actrade views this credit facility as a major factor in its plans to expand the scope of the Trade Acceptance Draft Program. With reliable, flexible financing such as that provided by this new facility, Actrade can make the TAD Program available on a larger scale to existing and future customers.'' On the issue of whether Actrade could facilitate larger transactions over and above the $25 million revolving credit facility, Mr. Stonkus acknowledged ING Baring's willingness to evaluate special account transactions on a case-by-case basis, whereby such special projects would be in addition to the $25 million. Mr. Stonkus pointed out that the revolving credit facility actually increases Actrade's ability to earn a higher return on capital. ''For example, when the capital used to fund a $100,000 TAD transaction becomes available after the TADs are sold at the end of a 30 day period, it allows another $100,000 transaction to be financed. Over a 90-day period, capital tends to be turned over three times. After Actrade discounts its cost of money, the return on capital increases significantly with no additional risk to the Company.'' Based in New York City, Actrade International Ltd., through its wholly owned subsidiaries, provides innovative domestic and international trade finance services. The Company's TAD Program and other services are marketed to businesses in the United States and abroad through offices in Atlanta, Fort Lauderdale, Los Angeles and New York. A newly established international division, Actrade Resources, Inc., based in the Bahamas, will develop and provide financing tools for companies trading outside the United States and for American exporters. Actrade Capital Canada, Inc., based in Toronto, focuses on the financing and trading needs of Canadian-based companies.

To: Z man who wrote (6965)	3/13/1999 6:59:00 PM
From: slowfe	Read Replies (1) \| Respond to of 7054

NEW YORK, March 11 /PRNewswire/ -- ...discussing the impact of the new financing, Actrade International Chief Operating Officer and Chief Financial Officer Alexander C. Stonkus said, ''Actrade views this credit facility as a major factor in its plans to expand the scope of the Trade Acceptance Draft Program. With reliable, flexible financing such as that provided by this new facility, Actrade can make the TAD Program available on a larger scale to existing and future customers.'' On the issue of whether Actrade could facilitate larger transactions over and above the $25 million revolving credit facility, Mr. Stonkus acknowledged ING Baring's willingness to evaluate special account transactions on a case-by-case basis, whereby such special projects would be in addition to the $25 million. Mr. Stonkus pointed out that the revolving credit facility actually increases Actrade's ability to earn a higher return on capital. ''For example, when the capital used to fund a $100,000 TAD transaction becomes available after the TADs are sold at the end of a 30 day period, it allows another $100,000 transaction to be financed. Over a 90-day period, capital tends to be turned over three times. After Actrade discounts its cost of money, the return on capital increases significantly with no additional risk to the Company.'' Based in New York City, Actrade International Ltd., through its wholly owned subsidiaries, provides innovative domestic and international trade finance services. The Company's TAD Program and other services are marketed to businesses in the United States and abroad through offices in Atlanta, Fort Lauderdale, Los Angeles and New York. A newly established international division, Actrade Resources, Inc., based in the Bahamas, will develop and provide financing tools for companies trading outside the United States and for American exporters. Actrade Capital Canada, Inc., based in Toronto, focuses on the financing and trading needs of Canadian-based companies.