Message #6 From:
NewsBot Date: March 8, 2005 03:28:09 PM
XRGI XRG Inc. Secures Financing With CAPCO Financial
XRG Inc. Secures Financing With CAPCO Financial
CLEARWATER, Fla.
XRG Inc., 727-475-3060
or
Liolios Group Inc.
Scott Liolios/Michael Cannivet (Investors), 949-574-3860
scott@liolios.com
XRG Inc. (OTCBB:XRGI), a provider of a wide range of truckload freight services in the United States, today announced that it had obtained a credit facility with CAPCO Financial - a division of Greater Bay Bank N.A., that provides asset-based credit to finance company operations.
The financing arrangement, which was approved for up to $10 million, will provide the opportunity to significantly reduce financing costs, administrative costs, and expedite cash flow.
Mike Hansen, senior vice president of Greater Bay Bank said, "We are pleased to have XRG as part of our portfolio and look forward to working with them."
Don Huggins, chairman of the board of XRG Inc., stated: "This new financing arrangement will allow us to reduce core operating costs which is essential in continuing to operate a profitable truckload carrier. The agreement should enable us to reduce our financing costs by approximately $500,000 over the next 12 months and could improve cash flow up to $1 million annually by replacing the previous factoring situation. The features of this new asset-based financing facility allows us to not only achieve real cost savings, but provides us the capability to continue to grow and take advantage of the opportunities presented. This arrangement will for the first time get XRG to be on a more even cost footing with the competition in our industry."
About XRG Inc.
XRG Inc. is a public company trading on the OTCBB under the symbol XRGI that was established in November 2000 to consolidate established and profitable truckload carriers throughout the United States. The company is targeting carriers that have long-term customer relationships. Our consolidation strategy enables us to diversify our customer base, technical capabilities and geographic areas served. For more information about XRG Inc. visit http://www.xrginc.com or call 727-475-3060.
