Free Flow, Inc. (FFLO) Announces $19.5 Million 506(c) Private Placement Offering
Proceeds are expected to allow the Company to execute its recently completed business plan and begin its subsidiary expansion strategy
KING GEORGE, VA, Aug. 27, 2020 (GLOBE NEWSWIRE) -- . (FFLO:OTCPINK), whose current subsidiaries provide Original Equipment Manufacturer recycled auto parts and supplies from a warehousing and shipping facility, today announced that it is seeking to raise up to $19.5 million pursuant to Rule 506(c) promulgated under Regulation D of the Securities Act of 1933.
A Private Placement Memorandum (PPM) details the Offering of Fifteen Million (15,000,000)
Series D Preferred Shares at a price of $1.30 per share for a total of up to $19,500,000 pursuant to Rule 506(c) promulgated under Regulation D of the Securities Act of 1933, as amended (the "Securities Act") and/or other applicable exemptions from registration under the Securities Act and applicable state law (the "Offering").
The shares sold through this Offering will be restricted shares and will not be freely tradable until expiry of the statutory period under Rule 144 under the Securities Act of 1933 (the “1933 Act”), or if such shares are registered. The securities may be sold only to Accredited Investors, which for natural persons, are investors who meet certain minimum annual income or net worth threshold.
For additional details of the Offering, please see the PPM on the Free Flow, Inc. website at .
As stated in the PPM, the Company intends to use the proceeds from this Offering, together with additional financing being sourced, for purchase of plant and machinery, inventory, and to employ production and management staff to operate more efficiently the scrap metal processing. Funds over and above the budgeted amount would enable its wholly owned Motors & Metals, Inc. subsidiary (“M&M”) to reduce its borrowing for plant and machinery, and funds over and above the required sum are expected to be set aside to acquire other used auto parts businesses and all for increased revenues and profits.
Current subsidiary operations plans include the purchase and installation of an 8085 metal shredding machine in order to increase shredding capacity at the Company’s 19-plus acre facility in King George, Virginia, making it possible to export more shredded metals. In addition to the ability to shred more metal from cars, this would allow the Company to also increase its ability to retrieve material and metals that can be resold to secondary purchasers.
The Offering is expected to be used for the benefit of all the Company’s subsidiaries, which include vehicle dismantling and the recycling OEM auto parts and supplies; scrap metal processing; and auto leasing. The Company recently announced that Motors & Metals, Inc. received its license from the Commonwealth of Virginia to operate as Scrap Metal Processor. The project cost has been established at approximately $7 million, and EBITDA has been projected around 21% on projected annual sales of about $10 million.
“We feel very strongly that an influx of growth capital from this Offering would allow the Company to execute its current business plan, help its subsidiary operations reach their full potential, and build greater long-term shareholder value,” said Mr. Sabir Saleem, CEO of Free Flow, Inc.
Any shareholders or interested potential investors who want to receive information directly from Free Flow, Inc. as soon as it has been publicly disclosed, should sign up for the Company’s Email Alert System at . More information about the Company can be viewed at . For further information about this release, contact Mr. Saleem at 703-789-3344.
ABOUT FREE FLOW, INC.
Free Flow, Inc., traded under the stock ticker symbol “FFLO”, is a Delaware company that creates and acquires operating subsidiaries with the goal of manufacturing and selling products and services. Through its current subsidiaries – Accurate Auto Parts, Inc., Motor & Metals, Inc., and Citi Autos, Corp. – the Company provides OEM (Original Equipment Manufacturer) recycled auto parts and supplies from a warehousing and shipping facility on its 19-plus acre facility in King George, Virginia, USA. Every year, approximately eleven million cars are scrapped and end up in salvage yards for reprocessing. FFLO helps to reduce the carbon footprint involved in the production of new parts and steel products through the sales of recycled auto parts and supplies.
Safe Harbor Statement:
This press release may include predictions, estimates, opinions or statements that might be considered "forward-looking" under the provisions of the Private Securities Litigation Reform Act of 1995. Such statements generally can be identified by phrases such as the Company or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates," or other, similar words or phrases.
Sabir Saleem Free Flow, Inc 703-789-3344
