CORUNNA, ONTARIO, Nov. 2, 2004 (PRIMEZONE) -- Megola, Inc. (OTCBB:MGOA), a leading solution provider in physical water treatment, microbiological control, wastewater treatment and air purification, announced today that the company does not currently have any immediate intentions to utilize the $10 million equity financing that is available to it. Megola announced yesterday that it had secured a Standby Equity Distribution Agreement with Cornell Capital, Inc.
"Our primary objective is to continue growing our business organically. The treatment of hard water and the scale formation it causes are a multi-billion worldwide problem and we know that our ScaleGuard technology can solve many costly related problems for users everywhere. At present, Megola intends to continue financing itself through internal cash flow or by obtaining short-term debt-based financing projects that may have larger short-term capital requirements," stated Joel Gardner, CEO of Megola, Inc.
Megola understands how important it is to minimize the dilution of the company's stock, and it intends to preserve shareholder value by avoiding the issuance of new stock at all costs.
"The funding agreement with Cornell Capital provides us with an option to obtain funding if we should need it in order to take advantage of unexpected opportunities that may arise in the future. These opportunities might include strategic acquisitions or capital intensive joint ventures. Our market capitalization currently stands at just $10 million. Unless we see a significant appreciation in our share price and our market cap, we feel that taking advantage of the funding instrument that Cornell has made available to Megola would be counterproductive and overly dilutive," added Gardner.
Since going public late last year, Megola (www.megolacorp.com) has been attracting ever increasing amounts of interest from a variety of industries. The company is in the process of greatly expanding both the scope of its offerings and its reach throughout the global marketplace. Through the continuance of the new business model that was previously launched this year, Megola believes it can significantly boost its revenues.
The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.