AutoTradeCenter has entered into a financial arrangement with Eagle Capital Group, LLC, a private company with headquarters in Phoenix, Ariz., providing AutoTradeCenter with a line of credit up to $1,300,000 that will be utilized by the company for working capital.
“AutoTradeCenter’s agreement with Eagle Capital is a tremendous step toward realizing our business plan objectives and achieving positive cash flow,” said Roger L. Butterwick, president of AutoTradeCenter. “This financing provides us with the opportunity to expand our Internet remarketing services while reducing operating costs. Our arrangement provides ATC the necessary resources to focus on product development, new business and achieving profitability.”
“We are excited about the opportunity this investment represents,” said Neil Elsey of Eagle. “AutoTradeCenter has proven Internet remarketing solutions that will continue to be widely accepted. This company has the right ideas, and we think this is the right time.”
The loan, due June 30, 2002, is at 12 percent interest and may be converted into shares of common stock any time up to 90 days after the due date and contains a warrant allowing Eagle to purchase additional shares for a period of five years. In connection with the loan agreement, the company entered into a Facilities Use and Administrative Services Agreement with Eagle affording the company use of Eagle office facilities, as well as software development, marketing, accounting, and other management services as needed. Eagle will have two representatives on ATC’s board of directors.
Further details on the above agreements can be obtained from AutoTradeCenter’s annual report on Form 10-K, for the period ended March 2001 once the report is filed with the Securities and Exchange Commission (SEC). The filing will occur as soon as this financing transaction can be documented in the filing, according to AutoTradeCenter officials. The Form 10-K will be available for public review from ATC’s Web site, www.autotradecenter.com or www.freeedgar.com, under the symbol AUTC.
About AutoTradeCenter
AutoTradeCenter (ATC) is an Internet-based "business-to-business" automotive re-marketing company. The company markets its services to automobile manufacturers, captive finance companies, lease and rental companies, and financial institutions across the U.S.
ATC powers American Honda Finance Corp.’s Vehicle Inter-Dealer Purchase System (VIPS) and American Suzuki Motor Corpo.'s PROline, utilizing Internet technology and remarketing services. ATC will be launching a similar remarketing program for Volvo Finance North America, Inc., in September 2001.
For more information on AutoTradeCenter.com Inc., visit www.autotradecenter.com or contact Public Relations at lseegan@autotradecenter.com.
