Mar 20 2010
EGPI Firecreek, Inc. (OTCBB:EFIR) announces the receipt of a term sheet for 2.5 million dollars in debt financing. The structured debt is not a convertible finance. Proceeds will be used to complete the Company’s previously announced acquisition of SouthWest Signal Corporation (“SWSC”).
In business since 2000, SWSC serves all facets of the DOT construction industry. SWSC generates business throughout the Southern geographical region, staffs 50 employees, and has reported over $10 million in annual revenues. They additionally work with large retailers including Walmart, Lowes, Home Depot, and several Private Developers. SWSC estimates an 11.4 million dollar order backlog having executed three new contracts, including one through the city of Tampa, FL.
Upon completion of the SouthWest acquisition, EGPI/Firecreek expects to increase their revenues from 16 million dollars to in excess of 26 million dollars on a pro forma basis for 2010 with a positive EBITDA.
Dennis Alexander, Chairman and CEO of EGPI Firecreek stated, “Several opportunities have recently presented themselves that afford us more traditional methods for raising capital. We consider these significant opportunities to grow the company without exposing the Company and its shareholders to potential dilution.”
Unrelated, the Company’s Form S-1 Registration Statement has been withdrawn.
Source: http://www.egpifirecreek.com/