ANAHEIM, Calif., Oct. 7, 2004 (PRIMEZONE) -- Gateway International Holdings, Inc. (Pink Sheets:GWYI) announced today the formation of A-Line Capital Corporation. A-Line Capital has been formed to provide financial services to consumers who seek financing for purchasing and leasing of machinery and equipment.
Initial cash flow at A-Line Capital is likely to come from the clients of Gateway International's subsidiary sales organizations: Elite Machine Tool Company and All American CNC Sales. Currently, these subsidiaries arrange for approximately $5,000,000 of equipment lease financing annually for their customers. In the past, neither Elite Machine Tool Company nor All American CNC Sales received any commissions or fees for these equipment lease introductions. In an effort to capture some of the potential income that is currently being lost to equipment lease brokers, Gateway International formed A-Line Capital to broker financing for its own transactions, as well as for customers not affiliated with a Gateway International division, thereby earning commissions from equipment lease financing companies. In the future, it is anticipated that A-Line Capital will also provide funding for some of these transactions directly.
Additional information on A-Line Capital Corporation can be requested directly from the Company via email at info@alinecapital.com. The Company is currently developing a consumer friendly website that will be available soon at www.alinecapital.com.
Gateway International's CEO, Larry Consalvi, commented on the new division, "For over a decade, we have helped clients arrange financing for their equipment purchases. To date, we have not been allowed to receive compensation for the vital role that we play in the financing process. With the formation of A-Line Capital, we will be able to capture this lost revenue stream and add value to the organization. Additionally, as we continue to generate positive cash flow and profits from other divisions, I am hopeful that we will be able to begin to finance some of our sales internally, creating additional profitability for the company."
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