EFFTEC INTL INC COM STK USD0.01 (OTCMKTS:EFFI) has announced that it has received a loan of $100,000 by Regions Bank which is owned by Regions Financial Corp (NYSE:RF).
Regions Financial’s deal provided an unsecured line of credit to Efftec. The latter received $80,000 will accrue a 7% per annum interest and the amount will be used to cater to the company’s expansion plans. The remaining $20,000 was issued through a credit card and the amount will be used to provide the working capital for the firm. It will also enhance the firm’s ability to use merchant banking facilities with suppliers.
Efftec intends to file the credit facility in its supplemental filings. The company recently announced that it relaunched its business-to-consumer e-commerce website following the recent acquisition deal with The Future Farms. Efftec also claims that its subsidiary, Red Light Backers, LLC has been receiving a lot of purchase orders for high-intensity discharge (HID) glow lamps from a Detroit customer. The firm is also continuing with the implementation of its consumer branding strategy into a unique product line that includes Gro Shedz personal grow systems, Budz Grow Shades, XE Lighting, and Red Light Bakers. It also has a few other products in development.
The firm believes that the recent developments will allow it to speed up its business especially as the state of Florida approaches its major growing seasons. Efftec International’s CEO John Morris stated that his company is pleased to be working together with Regions Bank towards securing profitability from the business through the credit facility.
The CEO further added that the credit facility will eliminate the need to tap into the equity markets for financing. He added that the company now has adequate cash flow and there is no need for extra financing, especially in the short term. Morris also stated that the firm will continue to seek out additional acquisitions that will assist in boosting the return on investments for the company’s investors.