RDX Announces First Debt Financing Scheduled $12.4MM Closing on Santa Fe Springs Property Sale
Canada NewsWire
SCOTTSDALE, AZ AND CALGARY, AB, June 3, 2014
SCOTTSDALE, AZ AND CALGARY, AB , June 3, 2014 /CNW/ - RDX Technologies Corporation ("RDX" or the "Company") (TSXV: RDX, OTCQX: RGDEF, FSE:RL7) , a water treatment and energy technology company, today announces a debt facility granted by Sigma Opportunity Fund managed by Sigma Capital Partners, and the scheduling of the Santa Fe Springs excess property sale closing through subsidiary Ridgeline Energy ( USA ), Inc.
The new $ 3.3 million dollar debt facility carries an interest rate of 5%. The Company will use the funds as a foundation to support manufacturing operations in Scottsdale Arizona and expanding Midland - Odessa Texas operations.
Maydan Rothblum, Managing Director, stated, "Sigma Capital Partners is pleased to be working with RDX. We look forward to supporting their growth and expanding our business relationship in the coming months and years. RDX is executing a well-designed, multi-faceted, plan for profitable growth in a manner that fits our business and investment standards."
Dennis M. Danzik , RDX Chief Executive Offer stated, "Sigma is a respected, transparent, foundational investment partner with RDX and everyone on our team is very proud that Sigma chose RDX as a customer. It is now our responsibility as a Company to remain creditworthy and grow our ability to use debt wisely and put borrowed capital to work for growth and shareholder value."
The Company also announces that the bankruptcy court supervising the Lakeland bankruptcy has signed the final court order modifying the agreement between the Company and Lakeland on certain remediation income on May 29th . The expected closing of the real estate sale will be the week of June 16 th , but is subject to change based on escrow and closing items. Total proceeds from the sale are approximately $ 12 .4MM. A detailed news release will follow the closing.
Danzik added, "The debt facility through Sigma allows large and expanding projects to continue and not impact our near term balance sheet strength. As a Company, it is most important that our plan to substantially change the way the balance sheet and cash was handled in the past, by always remaining focused on how capital is put to work. This effort has taken us over one year to implement and we will now have our major foundational work complete and can begin leveraging our position for growth."
About Sigma:
Sigma Capital Partners, LLC, through its affiliate fund Sigma Opportunity Fund II, LLC, is a multi-strategy private equity firm that focuses on investing in small-to-mid size companies operating primarily in the IT, Telecom, Technology and Business Services industries. Sigma works closely with management to unlock shareholder value and provide guidance and assistance in the areas of finance, operations, strategy, M&A and business development. For more information, please visit: www.sigmacp.com
ON BEHALF OF THE BOARD OF DIRECTORS
"D ennis M . Danzik"
Dennis M. Danzik , CEO
danzikdirect@rdxh2o.com
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."
SOURCE RDX Technologies Corporation
