APT Group, Inc., a propulsion technology company thatmanufactures and distributes advanced, environmentally friendly transportation,recreation and utility powersport products (www.powerapt.com),today announced that it has developed and executed a new strategy to meetincreasing production demands from both new and current customers.
APT today announced that it has completed an importantand complex transaction with Ironridge Global IV. Ltd. that eliminates thelockbox on Company’s account receivables, terminates the associated interestcosts, and restructures the balance sheet in preparation for continued domesticand international growth. APT todayissued an 8-K which details the terms of the transaction.
APT experienced significant growth in sales of motorsportproducts in 2011 and 2012, nearly doubling revenues from $5.9 million to nearly$11 million. During these early years,APT fulfilled orders by utilizing working capital credit lines from a localfinancial institution. The exponentialgrowth in sales required the Company to seek alternative sources of financingas the local institution had reached its lending limit. As an emerging, high-growth company, APTpartnered with a financing company in 2013. This financing firm, while necessary at the time, required APT toaccumulate excessive reserves while directing payments of receivables to thefirm as security, making cash flow difficult to manage and interest costshigh.
“Having control of cash is critical to capitalize onstrategic growth opportunities. APT nowhas the tools and team in place to effectively and efficiently manage theseopportunities and the cash flow necessary to execute our plan,” said TroyA. Covey, President. “We are wellpositioned to accept aggressive product orders from both current and newdomestic and international customers. Domestic demand for our products and technology is growing whileinternational demand is explosive. Thistransaction allows APT to launch new products and commit to internationaldistribution and brand growth opportunities this year and in 2015,” saidMr. Covey.
About APT Group, Inc.
APT Group, Inc. (OTC BB: FROZ) is a Missouri registeredcorporation headquartered in Kansas City and is the holding company for theMotoVoxÂ® motorsport product line, SmartCarbÂ® patented fuel system, and theSonic Flow small engine technology lines (http://www.motovox.com/,and http://www.powerapt.com/).