LOS ANGELES, April 3, 2007 (PRIME NEWSWIRE) -- Tank Sports (OTCBB:TNSP) today announced that it has been approved for a ten million dollar line of credit through Dutchess Private Equity Fund, LLC by the SEC. Tank Sports stated that this fund will be a "Special Reserve Fund" used as a security fund guaranteeing the implementation of company's business goals.
"We have completed all of the legal procedures for applying the line of credit with Dutchess Private Equity Fund, so now we can exchange our stock for cash at anytime. We have set up a policy determining when and how to use this 'Special Reserve Fund,'" said Jiangyong Ji, CEO of Tank Sports, Inc. "It will be used only if there is an urgent situation in regards to cash flow that requires it. In fact, the major purpose of this line of credit is to have an insured security fund. Since our expansion, research and development efforts require a sufficient amount of capital, we need this type of reserve fund to safeguard the process of achieving our company objectives and goals while still handling our day-to-day business."
About Tank Sports, Inc.
Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles and scooters, as well as off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts through OEMs in China. It utilizes the so-called "China Concept" to participate in the $31.5 billion annually (data: Motor Industry Council) motorcycle/ATV market.
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About Redcat Motors
Established in 2001, Redcat Motors is an importer and distributor of off-road power-sports products from China. The company has 5 regional warehouse locations and a dealership network of over 300 dealers. Redcat has a revenue of $70,000 per month for parts, and in 2005 the company had a revenue of $19,000,000. With gross profit of $3.40 million, the company realized a net earning of approximately $643,000 in 2005.
Safe Harbor Statement
The foregoing news release includes numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited "safe harbor" for certain forward-looking statements. Forward-looking statements in this news release relating to business developments are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with a small business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.