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HONG KONG, CHINA--(Marketwired - July 21, 2015) - PayChest, Inc. (OTC PINK: PYCT) is pleased to announce that the Company has arranged a $500,000 non-dilutive financing with an accredited investor. Under the terms of the agreement, the financing in its current format would involve a five year loan at 10% simple interest with interest payments deferred, capital repayments deferred and profit share payments of up to 7% of EBITDA. PayChest expects to receive the first significant tranche of this phased financing within 2 weeks. This follows receipt of smaller amounts late last week.
The objective of this financing is to achieve product commercialization.
Several important aspects make this financing good for the Company:
a) It is non-dilutive meaning it does not involve the issuance of shares
b) Interest payments and capital repayments are deferred to give the business breathing space to increase sales and recycle revenues (less profit share) allowing the business to gain sufficient mass before starting interest and capital repayments.
c) Profit share is ring-fenced around the sanitary products business, both current and future sanitary products. Any other business PayChest enters would not be subject to profit share under this agreement.
With this Agreement in place the Company anticipates it will fund the supply of materials, custom machinery, marketing and, initially, receivables from sales.
An announcement will be made shortly when commercial production begins. For those not currently on our e-mail list and wishing to receive future news releases it is strongly recommended they call or e-mail the Company to be added.
NOTES ABOUT FORWARD-LOOKING STATEMENTS
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, including those described in the Company's filings with OTC Markets http://www.otcmarkets.com/stock/PYCT/financials.
Certain statements contained in this release that are not historical facts constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act. Reliance should not be placed on forward looking statements because they involve unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied. Forward looking statements may be identified by words such as estimates, anticipates, projects, plans, expects, intends, believes, should and similar expressions and by the context in which they are used. Such statements are based upon current expectations of the Company and speak only as of the date made.
Historical news releases on the Company can be found at http://www.paychest.com/news.htm.
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